Exact cost of living data for Western Sahara is unavailable. However, costs are estimated to be very low (estimated CPI: 35.0), significantly below Western European standards, partly due to Moroccan subsidies and tax incentives for residents.

Specific housing market data is unavailable, but it is estimated to be very affordable (estimated property-to-income ratio: 4.0). This is influenced by tax incentives and subsidized living costs for Moroccan nationals, though property rights can be insecure due to the territory's disputed status.

Exact purchasing power data is unavailable. The estimated GDP per capita (PPP) for Western Sahara was $3,218.22 in 2025. While tax-free salaries are offered as incentives for some, overall purchasing power for the general population is estimated to be low (estimated Purchasing Power Index: 40.0).

Western Sahara operates under Moroccan tax policies, which offer significant incentives. There is no VAT, income tax, housing tax, land tax, or corporate tax for businesses operating in the region. Withholding taxes apply to non-residents (15% on dividends, 10% on interest/royalties).

The business environment is complex due to Western Sahara's disputed status and the absence of a credible free market. However, Morocco is heavily investing in infrastructure and encouraging investment, particularly in renewable energy, logistics, and fisheries. Morocco itself ranked second in Africa in the World Bank's 2025 'Business Ready' report.

Residents benefit from Morocco's expanding social security system, which includes universal basic mandatory health insurance, direct social assistance, and extended pension schemes. Morocco is also implementing universal unemployment benefits by the end of 2026.

Deposits in Moroccan banks, which administer the economy in Western Sahara, are not covered by a government deposit insurance scheme. Bank Al-Maghrib provides supervision to ensure stability.