Economy Guide in Mongolia

The Cost of Living Index in Mongolia is 32.7, indicating it is very affordable compared to New York City. Groceries (36.9) and restaurants (25.7) are particularly inexpensive.

The Property Price to Income Ratio is 12.0 years, suggesting a moderate housing market. The Rent Index is 16.2, indicating relatively affordable rental costs.

The Purchasing Power Index is 46.5, indicating a low average income relative to the cost of living in New York City.

Mongolia has a progressive personal income tax system with rates of 10%, 15%, and 20% for employment income, with a tax-free threshold of MNT 800,000 per month (effective 2026). The standard Value Added Tax (VAT) is 10%, and immovable property tax ranges from 0.6% to 1% of assessed value.

Mongolia was ranked 81st in the World Bank's Ease of Doing Business index (2019). The startup ecosystem is evolving but faces challenges with infrastructure, regulatory clarity, and a need for more structured support and tax incentives for early-stage businesses.

Mongolia has a mandatory and comprehensive social insurance system covering pension, health care, unemployment, employment injury, and maternity benefits. It includes both contributory social insurance and tax-financed social welfare schemes, providing a broad safety net for residents.

Deposits in Mongolia are protected up to 20 million MNT (approximately USD 5,600) per depositor per bank by the Deposit Insurance Corporation of Mongolia (DICoM). The banking sector is supervised by the Bank of Mongolia, which has implemented reforms to strengthen stability, though historical challenges and ongoing supervision concerns exist.