The Cost of Living Index is 58.1, indicating moderate costs compared to NYC. Groceries (76.9) and restaurant prices (53.2) are also moderate.

The property price to income ratio is 17.5 years, indicating a very expensive housing market. The Rent Index is 19.9. Foreigners are generally restricted from owning land, typically only able to lease it.

The Purchasing Power Index is 14.5, suggesting low buying power compared to NYC.

The tax system includes a progressive wage and salary tax (6% on the first $11,000, then 10% on income exceeding $11,000). There is no national VAT, but states may levy sales taxes (3-5%). No capital gains or nationwide property taxes. Enforcement can be erratic.

Ranked 158th in ease of doing business in 2019. Foreign investment faces significant barriers, including restrictions on land ownership, complex multi-level government approvals, and weak contract enforcement.

A social insurance system provides old-age, disability, and survivor benefits, with a minimum monthly pension of $100. Public healthcare is available but limited, often requiring expats to seek international insurance. Unemployment benefits are not explicitly covered.

No explicit national deposit insurance scheme or coverage limit was found. The FSM Banking Board regulates banks for safe and sound conduct. Commercial banks, often classified as foreign entities, have limited local lending capabilities.