The Cost of Living Index in Tonga is 49.3, indicating it is affordable compared to NYC. Groceries (53.0) and restaurants (46.4) are also moderately priced.

The property price to income ratio in Tonga is 2.44 years, indicating a very affordable housing market. The Rent Index is 9.49, suggesting very low rental costs. Land in Tonga cannot be bought or sold, only leased.

The Purchasing Power Index is 44.7, suggesting low buying power compared to NYC.

Tonga has a progressive personal income tax system collected via PAYE, with the first TOP 12,000 of annual income being exempt. Corporate income tax is 25%, and a Consumption Tax (VAT) of 15% applies to most goods and services. Property taxes are low, mainly consisting of fees for land registration and leases, as land cannot be bought or sold. There is no capital gains tax.

Setting up a business in Tonga can be challenging, particularly for foreigners, who may require a Tongan partner in certain sectors like food and fishing. While the government has implemented reforms, obtaining business licenses and navigating regulations can be complex. Foreign investors need approval from the Tongan Investment Board.

Tonga offers free healthcare and medication for its citizens, though facilities are limited, and expats must pay fees. The National Retirement Benefits Fund (NRBF) provides retirement, disability, and death benefits. A Social Welfare Scheme offers monthly financial assistance to elderly citizens aged 66 and older, with payments of 100 TOP for those up to 79 and 120 TOP for those 80 and over. A universal disability benefit is also in place.

Tonga does not appear to have an explicit statutory deposit insurance scheme. The National Reserve Bank of Tonga (NRBT) is responsible for maintaining the financial stability of the banking sector, which includes four commercial banks. While the sector is adequately capitalized, non-performing loans have been increasing, posing a risk. Tonga also faces challenges in fully meeting FATF's anti-money laundering and counter-terrorist financing standards.