Economy Guide in Turkmenistan

Very expensive costs (CPI: 99.4). Groceries (112.3) are particularly high, while restaurants (88.9) are slightly less so compared to NYC baseline.

Property prices average 24.4 years of household income, indicating a very expensive housing market. The rental market (Rent Index: 21.0) is relatively more affordable.

A purchasing power index of 21.3 indicates low buying power compared to New York City.

Turkmenistan has a flat personal income tax rate of 10% and a standard VAT of 15%. Corporate tax is 8% for resident entities, but 20% for wholly owned foreign companies and branches of foreign legal entities. There is no land tax, but foreigners pay rent for leased land.

The business environment is challenging due to extensive government control, opaque bureaucratic processes, and strict foreign exchange controls. While efforts are being made to develop a startup ecosystem, foreign investors face significant regulatory hurdles and higher tax rates.

Turkmenistan has a state-funded healthcare system, but its quality is generally low with limited facilities, often requiring expats to seek private insurance and medical evacuation. The pension system provides benefits, but amounts are often insufficient, and there are gaps in social safety net coverage.

Deposits of individuals are 100% guaranteed by the state under the 'Law on compulsory guarantee of deposits of individuals'. Despite this, severe currency controls and the existence of an unofficial exchange rate significantly hinder free currency exchange for individuals and businesses. Fitch reaffirmed Turkmenistan's B+ rating with a positive outlook in February 2024.