Economy Guide in Macao (China)

Macao has a moderate cost of living with a Cost of Living Index of 59.4 (NYC = 100). Groceries (66.4) and restaurant prices (44.7) are relatively moderate compared to New York City.

The housing market is very expensive, indicated by a Property Price to Income Ratio of 28.6 years. However, the Rent Index is lower at 26.3, suggesting that renting may be more accessible than purchasing property.

The Purchasing Power Index of 95.6 indicates a moderate buying power for residents, slightly below that of New York City. Median monthly employment earnings for residents were MOP 20,000 in Q3 2025.

Macao operates a low-tax system. Personal income tax (Professional Tax) has progressive rates up to 12%, with the first MOP 144,000 exempt for 2024, and a 25% general deduction for employment income. There is no VAT or general sales tax. Property tax on leased properties is 8% of rental income for 2025/2026, and a MOP 3,500 reduction is granted for residents. A new Tax Code effective January 1, 2026, shifts to a territorial taxation principle.

Macao offers a business-friendly environment with no restrictions on foreign investment and straightforward incorporation procedures. The government actively promotes economic diversification into modern finance, high-tech, and traditional Chinese medicine. The financial industry exhibits stable asset quality, robust capital adequacy, and sufficient liquidity.

Macao provides a comprehensive social security system managed by the Social Security Fund (FSS). Old-age and disability pensions increased to MOP 3,900 per month, and unemployment allowance to MOP 157 per day, effective January 1, 2025. The healthcare system offers universal public coverage for residents and has been praised by the WHO. Additionally, eligible permanent residents receive allocations to their Central Provident Fund accounts and participate in a Wealth Partaking Scheme.

Deposits in Macao are protected up to MOP 800,000 (approximately USD 99,120) per depositor at each participating institution under the Macao SAR Government's Deposit Protection Scheme, effective October 1, 2024. The banking sector maintains a strong capital adequacy ratio of 14.1% (2023) and substantial foreign exchange reserves. While the non-performing loan ratio increased in 2024 due to mainland China's property sector, overall system capitalization remains stable.