The estimated Cost of Living Index (CPI) for Reunion is around 60 (NYC = 100), placing it in the moderate range. While groceries are relatively expensive (index 82.6), rent is very affordable (index 19.3) and restaurant prices are moderate (index 62.5).

The Property Price to Income Ratio is 7.49 years, indicating an affordable housing market. The rental market is also very affordable, with a Rent Index of 19.3 (NYC = 100).

Although a specific Purchasing Power Index is unavailable, the average monthly salary of approximately $2,485.00 after taxes is reported to cover living expenses for 1.4 months and is 113.9% more than the average monthly cost of living, suggesting good local purchasing power.

Reunion, as an overseas French department, benefits from a progressive income tax system with rates ranging from 0% to 45% (2024 income, 2025 filing). Residents also receive a regional tax allowance of 30% up to €2,450. The standard VAT rate is significantly lower at 8.5%, with reduced rates as low as 1.05%.

Reunion's economy is primarily driven by public administration, tourism, and services. While there is a growing startup ecosystem with 114 startups, 15 of which are funded, foreign companies may face complexities in establishing a legal presence. The economy has shown resilience and growth in recent years.

Reunion benefits from the comprehensive French social security system, providing universal healthcare coverage, a robust pension system, and strong unemployment and family benefits. This creates a strong social safety net for residents.

Deposits in Reunion are protected up to €100,000 (approximately USD 117,000) per depositor per institution under the Fonds de Garantie des Dépôts et de Résolution (FGDR), which is part of the EU Deposit Guarantee Scheme. The banking sector benefits from strong European Central Bank (ECB) oversight and adherence to Basel III compliance.