Mozambique offers a very affordable cost of living with a Cost of Living Index (CPI) of 36.4. Groceries (33.4) and restaurants (34.6) are significantly cheaper compared to NYC.

The housing market in Mozambique is very expensive, with a property price to income ratio of 41.2 years. The rent index is 11.1, indicating relatively low rental costs compared to NYC, but direct land ownership for foreigners is not possible, with land-use rights (DUATs) typically granted for up to 50 years.

The average income in Mozambique provides low purchasing power, with an index of 31.5 compared to NYC. This suggests that local incomes generally do not stretch far.

Mozambique has a progressive income tax system with rates ranging from 10% to 32% for residents, and a 20% flat rate for non-residents on Mozambican-sourced income. The standard Value Added Tax (VAT) rate is 16%. Property transfer tax (SISA) is 2%, and annual municipal property tax ranges from 0.2% to 1%.

Mozambique's business environment is emerging with potential, particularly in urban centers like Maputo, supported by a growing interest in innovation and technology. However, the startup ecosystem is still in its early stages, facing challenges such as a developing regulatory framework, inadequate infrastructure, and a skills gap. Government initiatives and incubators are working to foster entrepreneurship.

Mozambique's social security system, managed by the National Institute of Social Security (INSS), provides benefits for retirement, disability, sick leave, and survivors, with employer contributions at 4% and employee contributions at 3%. While efforts are underway to expand primary healthcare coverage, access to quality healthcare remains a challenge, particularly in rural areas. A basic social pension is also available for vulnerable elderly households.

Deposits in Mozambique are protected by the Fundo de Garantia de Depósitos (FGD) up to a maximum of 40,000 MZN (approximately 624 USD) per depositor, a limit increased in May 2024. The banking sector is considered solid, capitalized, and resilient by the Bank of Mozambique, which provides oversight and regulation. However, non-performing loans remain above the statutory limit.