Economy Guide in Solomon Islands

The Cost of Living Index (CPI) in the Solomon Islands is 101.4, indicating it is very expensive compared to NYC (100 baseline). Groceries (65.1) and restaurant prices (45.3) are also relatively high.

The property price to income ratio is extremely high at 802.7 years, indicating a very expensive housing market. The Rent Index is 19.5, suggesting rentals are relatively more affordable than purchasing property.

The Purchasing Power Index is 14.8, indicating very low buying power compared to NYC (100 baseline).

The Solomon Islands operates a progressive income tax system with an exemption of SBD 15,080, then rates from 11% up to 40% for higher taxable incomes. Corporate tax is 30% for resident companies and 35% for non-resident companies. There is no VAT/GST, capital gains tax, wealth tax, or inheritance tax.

The Solomon Islands ranked 136 out of 190 economies in the ease of doing business in 2019, with some improvements in areas like starting a business and obtaining credit noted in 2020. However, challenges persist due to public-sector inefficiency, poor governance, and underdeveloped infrastructure. The digital business environment is still emerging, and most business is conducted in person.

The country operates a provident fund system (SINPF) for employed persons, with mandatory contributions of 5% from employees and 7.5% from employers, providing lump sum benefits for old age, disability, and survivors. A voluntary savings scheme (YouSave) is available for the self-employed. Social assistance programs are limited, focusing on the disabled, basic education, and disaster relief.

The financial system in the Solomon Islands was broadly stable with well-capitalized banks as of the first half of 2025, though non-performing loans remain elevated at 10.2%. The Central Bank of Solomon Islands (CBSI) regulates and supervises the financial system. However, no explicit, current, and quantifiable deposit insurance coverage limit for the Solomon Islands was found in recent searches. The country was rated partially compliant with FATF Recommendation 24 (beneficial ownership) in 2019 and faces risks of non-compliance with updated standards.