Introduction:

French Polynesia, with Tahiti as its most prominent island, is often perceived as a tropical paradise not only for its natural beauty but also for its distinctive tax landscape. Unlike most jurisdictions, French Polynesia operates under a tax regime separate from mainland France, offering an environment that is especially appealing to both foreign residents and international businesses seeking efficiency in their global tax planning. The territory does not impose a personal income tax, capital gains tax, or wealth tax, which makes it particularly interesting for individuals relocating from higher-tax jurisdictions. For businesses, the absence of corporation tax as it is traditionally understood elsewhere creates a highly favorable environment, though firms should remain aware of social contributions and indirect levies that form the backbone of the territory’s revenue system.  

Economically, French Polynesia is a French overseas collectivity with a degree of autonomy, yet it remains closely tied to France and the European Union. This connection provides a foundation of stability and legal certainty that is often missing from other so-called “tax havens.” The government’s focus is on consumption-based and import-related taxation—which aligns naturally with the territory’s reliance on tourism, maritime trade, and limited domestic industry. This unique structure makes Tahiti and its neighboring islands particularly attractive for international investors or expatriates seeking both a favorable tax environment and a high quality of life.  

It is also notable that French Polynesia benefits from international tax treaties concluded by France. Foreign residents and companies conducting business linked to French Polynesia can, in principle, access the protection of double taxation agreements (DTAs) France has signed with other states. In the context of German-speaking Europe, this includes Germany, Austria, and Switzerland. These treaties can help prevent cross-border investors and expatriates from being taxed twice on the same income, while also offering clarity and legal safeguards for structuring international holdings or revenue streams.  

Taken together, French Polynesia offers an unusual blend: the prestige of an association with France, a robust legal framework boosted by EU ties, and an exceptionally light direct tax burden. For globally mobile individuals and businesses—particularly those from treaty partner countries such as Germany, Austria, and Switzerland—this balance makes Tahiti not only a dream destination in lifestyle terms but also a compelling jurisdiction from a tax planning perspective.  

On the Map & What Others Say

French Polynesia, with Tahiti at its heart, lies deep in the South Pacific Ocean—an overseas collectivity of France spread across more than 100 islands and atolls. Situated roughly midway between Australia and South America, the territory spans nearly five million square kilometers of ocean, though its combined landmass measures only about 4,000 square kilometers. The archipelago is divided into five island groups: the Society Islands (home to Tahiti and Bora Bora), the Tuamotus, the Marquesas, the Gambier Islands, and the Austral Islands. Tahiti itself, the largest and most populous island, serves as the administrative and economic hub, with Papeete as its capital city. Its volcanic mountains, lush valleys, and striking black and white sand beaches have long made it an instantly recognizable image of Pacific paradise.  

Travel writers consistently highlight both the natural beauty and lifestyle of Tahiti and its surrounding islands. A number of international travel magazines describe the region as “a place where life moves in rhythm with the ocean,” emphasizing the slower, more relaxed pace compared to mainland France or other metropolitan centers. Lifestyle bloggers often remark on the cultural richness, pointing to the strong Polynesian identity expressed through dance, tattoo artistry, and traditional ceremonies. One travel blog described Tahiti as “a blend of French sophistication and Polynesian soul,” underlining the unique fusion of café culture and island hospitality.  

Others focus on the environment and outdoor experiences, praising the world-renowned lagoons, coral reefs, and opportunities for diving and surfing. Writers frequently contrast Bora Bora’s reputation for luxury resorts with the more local, everyday charm of Tahiti, where markets, street food, and bustling waterfronts offer a glimpse into daily life. Across these perspectives, the consensus suggests that French Polynesia—while geographically remote—offers both cultural depth and extraordinary natural settings that remain attractive not just for tourists, but also for those considering longer stays or expatriation.  

How the Tax System Works in French Polynesia & Tahiti

French Polynesia, including Tahiti as its most prominent island, maintains a tax system that is distinct from that of metropolitan France, despite its status as an overseas collectivity of the French Republic. Unlike France, French Polynesia does not levy a personal income tax on employment or investment income, creating a tax environment that is favorable to both residents and foreign investors. Instead, the government funds its public services primarily through indirect taxes, payroll-based levies, and corporate taxation.  

For individuals, the absence of traditional personal income tax is one of the most striking features of the system. However, this does not mean that individuals are free from all fiscal obligations. Payroll contributions, mandatory social security payments, and various consumption taxes make up a significant portion of what residents contribute to the economy. Tourists and expatriates will also encounter these costs indirectly through higher prices on goods and services. For example, consumption taxes can add anywhere between 10%–20% on goods, which is why imported items such as groceries, fuel, and electronics often carry noticeably higher price tags—in many cases doubling the price compared to mainland United States or Europe.  

Companies, on the other hand, face a more traditional tax framework. Although corporate tax rates in French Polynesia are lower than those in mainland France, they still represent an important source of public revenue. Depending on size and sector, businesses can face effective tax rates ranging from about 25% to 30%. Small enterprises benefit from preferential regimes, but larger businesses, especially in areas like import-export or tourism, face heavier obligations.  

In addition to personal and corporate taxation, a variety of other levies sustain the local economy. Customs duties are an especially important contributor, as imported goods form the bulk of what residents consume. Vehicles, alcohol, tobacco, and fuel are subject to both duties and excise-style taxation, significantly increasing their end cost. Additionally, businesses must comply with registration fees and licensing costs that substitute in part for other forms of direct tax.  

Overall, the tax system in French Polynesia is highly consumption-based, with revenue collection focused less on income and more on what individuals and companies import, purchase, or produce. This structure shapes the cost of living, business operations, and even investment strategies within the territory.  

In the following sections, we will explore each of these dimensions in more detail—starting with personal taxation (including payroll charges and individual obligations), then moving on to corporate taxes (covering rates, compliance, and specific sectoral rules), and finally discussing the wider array of indirect taxes, contributions, and customs duties that comprise the backbone of French Polynesia’s fiscal framework.  

Taxation of Individuals

Unlike most jurisdictions, French Polynesia—including Tahiti—operates under a tax framework that is distinctly separate from mainland France. One of its most striking features is the absence of a conventional personal income tax. Natural persons, whether residents or non-residents, are not subject to the progressive income tax system familiar in metropolitan France or other OECD member states. Instead, the territory relies on a patchwork of indirect taxes, import duties, and social contributions to fund public revenues.

Residents

For individuals considered residents of French Polynesia—that is, those who maintain their habitual abode on the islands or spend more than 183 days within a calendar year—there is no personal income tax on employment, business, or investment income. However, residents are required to contribute to local social security schemes, such as the Caisse de Prévoyance Sociale (CPS), which finances healthcare, family benefits, and pensions. Employee social security contributions typically run between 5% and 10% of gross salary, while employers bear a higher overall burden through additional payroll levies.  

In practice, this means that a salaried worker earning 400,000 XPF (roughly €3,350) per month would not pay an income tax to the government, but would see CPS contributions deducted directly from gross wages. For higher earners, this framework generally provides an advantageous environment when compared with high-tax jurisdictions.

Non-Residents

Individuals who are not considered residents—for instance, those who come for short-term assignments, projects, or seasonal work—are similarly not subject to personal income taxation on locally sourced income. Nonetheless, if employed, they may still be enrolled in the CPS system and required to contribute to social insurance depending on the contractual arrangement with their employer. Non-residents conducting business locally may also incur certain business license fees or indirect levies, but there is no statutory withholding tax on wages or professional income akin to other tax systems.

Deductions and Allowances

Because there is no personal income tax base, the usual deductions and allowances tied to taxable income simply do not exist. Instead, workers and businesses may only optimize their financial position through managing social security contributions or structuring business activity to minimize exposure to specific local levies, such as contribution on professional and commercial activity (contribution des patentes) or consumption taxes. For natural persons, however, the concept of deductions against taxable income is not applicable.

Special Regimes for Expats and Digital Nomads

Unlike countries that offer targeted incentives such as expatriate regimes, reduced rates, or territorial exemptions, French Polynesia does not provide special income tax privileges to expatriates or digital nomads—for the simple reason that no personal income tax is levied at all. Expats employed locally must integrate into the CPS system, while self-employed individuals or digital nomads working remotely may need to consider business license obligations if they establish a local economic presence. Importantly, while French Polynesia itself does not impose tax on foreign-source earnings, an expat’s home country may still consider them liable for worldwide taxation, especially if they remain tax-resident elsewhere. This creates a need for careful cross-border tax planning, taking into account the absence of a French Polynesian income tax but potential reporting obligations abroad.

Key Takeaway  

The tax landscape for natural persons in Tahiti and French Polynesia is atypical in that no income tax is levied, greatly simplifying administration for both residents and non-residents. The main obligations arise instead from social security contributions and, in some cases, minor business-related levies. While this system is appealing for expatriates and digital nomads, individuals must always assess interaction with their country of origin’s tax rules, as the absence of taxation in French Polynesia does not automatically equate to global tax neutrality.  

Taxation of Corporations

French Polynesia, including Tahiti, operates a tax framework that diverges significantly from that of mainland France. Unlike the French Republic’s metropolitan system, there is no general corporate income tax in French Polynesia. Instead, the government relies heavily on indirect taxation—particularly customs duties, import levies, and consumption-based taxes—to generate revenue. This makes the territory comparatively attractive for business establishment, especially for companies engaged in trade, shipping, and tourism.

That said, while there is no overarching corporation tax on profits, businesses are still subject to various other levies and regulatory charges. Key points include:  

• Business License Contribution (Contribution des Patentes): Corporations must pay an annual license fee to operate, the cost of which depends on the size of the business and its turnover. For larger companies, this can reach the equivalent of several thousand U.S. dollars per year.  

• Social Security Contributions: Employers must contribute to the local social security and employee protection schemes, which are substantial and represent one of the primary “effective tax burdens” for corporations.  

• Indirect Taxes: Import duties, excise duties, and certain consumption taxes apply to goods and services, often at comparatively high rates given the territory’s reliance on imports. These can represent a significant cost factor for businesses operating in or through Tahiti.  

Deductibility of Business Expenses  

Since there is no traditional profit-based tax regime, the concept of “deductible expenses” in the income-tax sense is less relevant. Instead, business expenses matter primarily for calculating the basis of certain levies or fees, or for financial reporting purposes. Companies are generally free to deduct typical operational costs—such as rent, wages, raw materials, and depreciation—from their accounts. However, because no corporate tax applies on net income, these deductions do not serve the same tax-limiting purpose as in most jurisdictions.  

Special Economic Incentives  

French Polynesia has developed a number of business facilitation programs and sector-specific incentives designed to attract investment:  

• Tourism & Hospitality Sector: Given the central role of tourism in Tahiti’s economy, companies investing in hotels, resorts, and related activities may qualify for reduced import duties on building materials, equipment, or transportation assets.  

• Pearl Industry and Marine Resources: Incentives are offered in the form of reduced taxation on exports and import relief for companies contributing to the black pearl industry or maritime-based activities.  

• Industrial Free Zones: While French Polynesia does not operate “classical” free zones like those found in Dubai or Singapore, certain geographic areas and industry sectors benefit from tariff reductions or simplified customs procedures. These can translate into savings worth tens to hundreds of thousands of U.S. dollars depending on the scale of the project.  

Overall Attractiveness  

French Polynesia’s lack of a corporate income tax makes it appealing on paper, particularly for holding or trading companies. However, it is important to note that this benefit is balanced by relatively high indirect costs, expensive logistics, and mandatory social contributions. For enterprises considering incorporation, the main “tax” considerations will therefore be license fees, duties, and payroll-related obligations rather than profit taxation.  

In short, while French Polynesia does not fit into the standard corporate tax models of most jurisdictions, it offers a favorable environment for enterprises that can navigate the indirect cost structure and take advantage of sectoral incentives—particularly in tourism, maritime industries, and export-oriented businesses.  

Other Significant Taxes

While French Polynesia is an overseas collectivity of France, it maintains its own tax system that differs substantially from mainland France. Understanding the “other” significant taxes beyond the basic income tax is critical for residents, investors, and expatriates, as the rules here often diverge from the expectations of a typical European or Western jurisdiction.  

Capital Gains Tax (securities, real estate, and crypto):  

One noteworthy feature of French Polynesia’s system is that there is no general capital gains tax. Gains stemming from the sale of listed securities, real estate, or digital assets such as cryptocurrencies are not subject to a separate capital gains levy in most cases. This makes Tahiti a relatively simple jurisdiction for investors compared to France or other high-tax countries. However, certain transactions may still attract indirect taxation (such as registration duties on property transfers, which can approximate 3%–6% of the sale value, i.e., about USD $30,000 on a $500,000 property transaction).  

Dividend Taxation:

Dividends received by individuals are generally not subject to a dedicated dividend tax in French Polynesia. Instead, they may fall under the broader “contribution on distributed income” rules at the company level, but recipients as private individuals typically do not face separate taxation. This contrasts sharply with France, where dividends attract withholding and flat tax regimes.  

Consumption Taxes (VAT / GST equivalents):  

French Polynesia does not apply a European-style Value Added Tax. Instead, it relies on indirect consumption taxes known as Taxe sur la Valeur Importée (TVI) and Taxe sur les Produits et Services (TPS).  

• The TVI applies to imports, typically around 5%–25% depending on the product category, significantly raising the cost of imported goods.  

• The TPS is a service tax, which functions somewhat like VAT on certain local services. Its rates are generally modest, ranging from 5% to 17%.  

For a family spending about USD $50,000 annually on taxable consumption, the effective indirect tax burden can realistically amount to USD $5,000–$8,000.  

Wealth and Property Taxes:  

Unlike mainland France, French Polynesia does not impose a net wealth tax. Property ownership itself is not taxed annually through a recurring property tax (as seen in many countries). Instead, taxation focuses primarily on transaction duties at the time of transfer. For instance, when purchasing real estate, transfer duties can range between 2% and 6% of the property value. A USD $400,000 purchase could incur USD $8,000–$24,000 in registration taxes.  

Inheritance and Gift Taxes:

There is no inheritance or gift tax regime in French Polynesia. Transfers of wealth, whether during lifetime or upon death, are generally free of taxation at the local level. This makes the jurisdiction attractive from an estate planning perspective.  

Social Security Contributions:  

One significant fiscal obligation in Tahiti is social security and welfare contributions. Employers and employees must contribute to the Caisse de Prévoyance Sociale (CPS), which funds healthcare, pensions, and family allowances.  

• Employer contributions can reach roughly 18%–26% of gross salary, depending on the category. 

• Employee contributions are lighter, at around 6%–10% of gross monthly earnings.  

As an example, an employee earning USD $50,000 annually might contribute USD $3,000–$5,000, while the employer would contribute closer to USD $10,000 or more on behalf of that employee.  

Taken together, French Polynesia’s taxation is light by international comparison, particularly due to the absence of capital gains, dividend, wealth, and inheritance taxes. However, indirect consumption taxes and substantial social security contributions mean that the overall fiscal burden is balanced by higher living costs and reduced government-funded services compared to France proper. This framework should be carefully considered by expatriates weighing career, investment, or retirement opportunities in Tahiti.  

Who Benefits Most from Moving to French Polynesia & Tahiti?

French Polynesia—of which Tahiti is the largest and most recognizable island—offers a distinctive tax and lifestyle environment that can be highly advantageous for certain groups of people, while presenting limitations for others. Understanding who stands to benefit most requires balancing its fiscal policies with its geographic, economic, and social realities. 

Entrepreneurs and Business Owners  

Those who stand to gain the most are entrepreneurs who can align their business activities with French Polynesia’s territorial tax system. The jurisdiction does not levy personal income tax in the way many Western countries do, and corporate taxation tends to focus on locally derived profits rather than worldwide income. This makes the territory appealing for entrepreneurs with businesses structured to operate globally but who wish to manage and withdraw personal funds within a favorable tax environment. However, it is worth noting that setting up and running a business on the islands can be challenging: the local market is small, import costs are high due to geographic isolation, and regulatory processes can be complex. Entrepreneurs with service-based or niche luxury businesses catering to tourism and high-net-worth individuals may find French Polynesia especially advantageous.  

Digital Nomads and Remote Workers

Remote professionals, particularly digital nomads, can also benefit from relocating to Tahiti and the surrounding islands, provided they have foreign client bases. The lack of a personal income tax reduces their effective tax burden, while high-quality internet is increasingly available in urban centers like Papeete. That said, living expenses are considerably above average due to the reliance on imported goods, and physical remoteness from North America, Europe, and Asia may reduce practicality for those who need to travel frequently. Digital nomads looking for lifestyle over logistical convenience—especially those seeking natural beauty, security, and a slower pace of life—will find French Polynesia rewarding.  

Retirees and High-Net-Worth Individuals

Retirees and financially independent individuals are another group well-positioned to benefit from the move. With no general income or wealth tax, retirement savings can stretch considerably further than in higher-tax jurisdictions. In addition, the islands offer a peaceful, scenic, and culturally rich environment ideal for long-term living. However, retirees relying heavily on advanced healthcare needs may find limitations, as specialized medical care often requires evacuation to New Zealand or France. Those with sufficient resources to manage private international care or supplemental insurance will benefit most.  

For Whom It May Not Be Suitable

Despite its favorable tax regime, French Polynesia is not universally well-suited. Individuals seeking a dynamic business hub with robust financial infrastructure may find it too isolated. Salaried employees who rely on local employment opportunities are less likely to benefit, given limited job markets and relatively high costs of living. Furthermore, those requiring extensive healthcare, frequent international travel, or a strong social infrastructure tied to major global cities may find French Polynesia impractical.  

In sum, the tax advantages and unique lifestyle in French Polynesia and Tahiti strongly favor globally mobile entrepreneurs, digital service providers, and retirees with sufficient financial independence. For those whose income depends on local employment, or whose lifestyles demand constant access to world-class medical and travel networks, the environment may be less accommodating. The key is aligning personal financial strategies and lifestyle priorities with the realities of island living.  

Special Considerations for Relocation

Relocating to French Polynesia, including its most well-known island of Tahiti, requires careful planning and an understanding of both legal and practical requirements. While the territory is officially part of France, it possesses a special administrative status with its own regulations, which may differ from those of mainland France. Key areas to consider when preparing for a move include immigration formalities, access to healthcare, banking arrangements, and the logistics of importing personal belongings.  

Residence Permits and Visas  

French Polynesia is not part of the European Union’s Schengen Area, which means its entry and residency rules operate independently of continental France.  

• EU/EEA citizens and French nationals: No visa is required for entry or residence, and these individuals can live and work freely.  

• Non-EU nationals: Typically, a long-stay visa and, subsequently, a residence permit (known as a titre de séjour) are required for stays beyond 90 days. The application usually begins with the French consulate in the applicant’s home country. Approval can take several months, so early preparation is advised. Proof of accommodation, sufficient resources, and health insurance coverage are commonly required.  

Healthcare System

Healthcare in French Polynesia is modeled on the French system but has its own local administration.  

• The Caisse de Prévoyance Sociale (CPS) manages social security, health insurance, and pensions for residents. Residents employed locally are generally enrolled in CPS through their employer.  

• For non-employed expatriates, private health insurance is a critical consideration, as eligibility for CPS can be limited without local employment.  

• Medical facilities are concentrated in Tahiti, particularly in Papeete, while outer islands may have limited services. This geographic disparity makes supplemental insurance for emergency evacuation highly advisable.  

Opening a Bank Account

Banking in French Polynesia is provided mainly by subsidiaries of French banks (e.g., Banque de Tahiti, Banque de Polynésie) and some local institutions.  

• To open a local account, residents are typically required to provide proof of identity, proof of address in French Polynesia, and a residence permit (if applicable).  

• While many day-to-day transactions can be conducted electronically, local practices still rely heavily on checks and in-person arrangements. Newcomers should anticipate slightly longer administrative timelines compared to mainland finance systems.  

• International transfers may incur higher fees, making a local account advantageous for those receiving or paying in Pacific francs (XPF, CFP franc), which is pegged to the euro.  

Importing Personal Items  

Bringing personal effects to Tahiti can be complex due to strict customs regulations and the islands’ remote location.  

• Duty-free relief is generally available for personal belongings if arriving under a long-term residence status and if items have been owned and used for at least six months prior to import. Proof of residence abroad, as well as inventory documentation, is required to qualify.  

• Vehicles, alcohol, and new goods are subject to duties and taxes, and the import of certain items (e.g., plants, foodstuffs, and animals) is carefully controlled due to biosecurity concerns.

• Shipping can be expensive and slow; therefore, many expatriates prefer to ship only essentials and purchase large items locally. Engaging a relocation agent with local expertise can ease the process significantly.  

Successfully relocating to French Polynesia requires not only compliance with legal obligations but also practical adaptation to an island lifestyle where logistics and services can differ notably from mainland standards. Understanding these elements in advance helps ensure a smoother transition and allows expatriates to focus on enjoying the unique cultural and natural environment.  

The 'Boris Becker Trap': Avoiding a Sham Relocation

The relocation of one’s tax residence to French Polynesia, and particularly to Tahiti, can be highly attractive given the absence of personal income tax and the territory’s generally lighter fiscal environment. However, it is here that individuals must exercise significant caution: tax authorities in high‑tax jurisdictions such as Germany, Austria, or Switzerland closely scrutinize whether a person has genuinely shifted their “center of vital interests” abroad. The so‑called “Boris Becker trap”—named after the tennis champion whose purported residence in Monte Carlo was deemed a façade by German authorities—illustrates the risks of attempting a relocation that exists only on paper.  

To avoid falling into this trap, one must do far more than simply register an address or purchase property in Tahiti. Home‑country revenue services look at the totality of an individual’s personal and economic links. Where does the family reside? Where are children educated? Where are business decisions made, and where is wealth managed? If the evidence suggests that the taxpayer continues to maintain substantial life ties in the home country while only nominally claiming residence in French Polynesia, the move will not withstand scrutiny.  

The consequences of a sham relocation can be severe. If authorities determine that the center of vital interests never truly left the home country, the taxpayer remains fully taxable there, including on worldwide income. This can not only result in significant back taxes and penalties but also potential criminal proceedings for tax evasion. Moreover, reputational damage can be lasting—both personally and professionally—when high‑profile cases are pursued in court and publicized.  

Therefore, any serious plan to shift residence to French Polynesia must be backed by a genuine change in lifestyle and commitments. This often requires establishing a primary residence in Tahiti, spending a majority of the year there, closing or scaling back ties in the home country, and relocating family, social, and business affairs as much as possible. Formal steps—such as deregistration from the home country’s population register and updating tax and social insurance records—should be paired with substantive changes that clearly demonstrate that life is now centered in Polynesia rather than Europe.  

In short, French Polynesia offers an appealing fiscal framework, but only for those who make the move authentic. Attempting a cosmetic relocation risks replicating the very scenario that ensnared Boris Becker, with far‑reaching financial and legal consequences. A credible expatriation strategy requires careful planning, genuine personal commitment, and clear documentation of the shift in vital interests.  

What Makes French Polynesia & Tahiti an Attractive Place to Live?

French Polynesia, and in particular the island of Tahiti, offers far more than a favorable living environment from a tax perspective. For many expatriates, what truly makes life compelling here are the cultural richness, natural beauty, and lifestyle that define the region.  

One of the most striking benefits is the climate and natural environment. French Polynesia enjoys a warm, tropical climate year-round, with abundant sunshine, refreshing ocean breezes, and breathtaking marine ecosystems. The islands are renowned worldwide for their lagoons, coral reefs, and overwater bungalows, making daily life feel like a perpetual retreat. From hiking volcanic peaks to snorkeling or diving among vibrant marine life, nature is never far from one’s routine. This unique environment supports an outdoor-oriented lifestyle, with opportunities for swimming, sailing, surfing, and island-hopping.  

Cultural immersion is another key attraction. French Polynesia combines deeply rooted Polynesian traditions with French influences, creating a distinctive and diverse cultural identity. The local population is known for its hospitality and sense of community, while music, dance, and traditional arts remain integral to daily life. Events such as the Heiva festival showcase Polynesian heritage through music, dance, competitions, and ceremonies, offering new residents an authentic way to connect with their surroundings.  

Lifestyle benefits also stem from the slower pace of life compared to large metropolitan areas. Many expatriates appreciate the more relaxed, community-oriented approach to daily living, often centered on family, nature, and social gatherings. The culinary culture reflects both French gastronomy and island ingredients, allowing residents to enjoy fresh seafood, tropical produce, and an eclectic fusion of flavors.  

Safety and quality of life further enhance the appeal. French Polynesia has relatively low levels of violent crime compared to many other island destinations, and many residents feel comfortable in their neighborhoods and communities. The islands also benefit from infrastructure linked to their political relationship with France. Health care facilities, education options, and public services follow French standards to a significant degree, which provides a higher level of security and accessibility for expatriates than is found in some comparable island jurisdictions.  

Finally, connectivity and modern conveniences are steadily improving. While the islands retain a sense of remoteness and seclusion, international flight connections—particularly to Los Angeles, Paris, Tokyo, and Auckland—allow for accessibility to major global hubs. Telecommunications infrastructure continues to expand, including increasing internet capacity and international bandwidth, making it easier for expatriates to balance business interests abroad with the pleasures of island living.  

In combination, these non-tax benefits—natural beauty, cultural richness, relaxed lifestyle, personal safety, and modern infrastructure—make French Polynesia and Tahiti uniquely attractive for those seeking not just financial advantages, but also a deeply rewarding quality of life.  

Cost of Living

When evaluating the cost of living in French Polynesia, particularly in Tahiti, it is essential to recognize the economic realities of an isolated archipelago that relies heavily on imports. Compared with Western European countries such as France or Germany, residents of Tahiti often face higher prices for everyday goods and services, though certain housing and lifestyle factors can balance this out.  

Housing Costs:  

Rental prices vary depending on proximity to Papeete, the capital of Tahiti. A one-bedroom apartment in the city center typically ranges from approximately €900–€1,200 per month, while similar accommodation outside the city may cost between €600–€800. These figures are comparable to medium-sized Western European cities, although they can seem high relative to local wages. Larger, expatriate-oriented villas with ocean views command substantially more, often exceeding €1,500–€2,000 per month. In contrast, many Western European urban centers like Paris or Munich can see comparable apartments in prime locations surpassing €1,500, making Tahiti slightly more accessible in terms of rental housing than Europe’s most expensive capitals, though still costly compared to mid-tier European cities.

Food and Groceries:

Food is typically more expensive than in mainland Europe due to the need to import most products. A liter of milk can cost around €2.00–€2.50, compared with €1.20 in France, while a loaf of bread may reach €2.50–€3.00. Fresh produce, such as apples or tomatoes, can be two to three times the price seen in Western Europe, reflecting transport costs and reliance on imports. Locally produced goods, such as fish, tropical fruits, and coconuts, are more affordable and provide opportunities to offset food costs by adjusting consumption habits. Dining out is generally expensive: a basic restaurant meal might cost €15–€20, while a mid-range three-course dinner for two can easily exceed €80–€100—similar to or even higher than in Paris or Rome.

Services and Utilities:

Utilities, including electricity, water, and internet, are typically more expensive than in Western Europe. Monthly utility bills (for electricity, cooling, water, and waste services) for an average 85 m² apartment often range between €150–€250, compared with €100–€180 in many European cities of similar size. High-speed internet costs between €70–€100 per month, well above prices in France or Germany where competition has driven fees down. Personal services such as domestic help may be somewhat cheaper, but professional services (medical, legal, or technical) are more expensive, reflecting limited availability and the costs of specialized expertise.

Overall Comparison:  

While rents in Tahiti can be comparable to smaller or mid-tier Western European cities, the daily cost of living—especially for groceries, dining, and utilities—tends to be significantly higher. The premium is largely attributable to the geographic isolation and reliance on imports. For expatriates accustomed to European pricing in urban centers, the total budget in Tahiti may feel similar to, or slightly above, that of a major Western European city, though shaped differently: accommodation may be relatively moderate, but day-to-day expenditures on food and services run considerably higher.  

This dynamic means that while living in Tahiti offers undeniable lifestyle advantages such as natural beauty and climate, maintaining a Western European standard of living often requires a higher disposable income than in many European countries.  

Tax Aspects of Leaving Your Home Country (e.g., Germany, Switzerland, Austria)

When individuals consider relocating to French Polynesia from countries such as Germany, Switzerland, or Austria, it is important to understand that leaving one’s home country does not necessarily sever all fiscal ties immediately. Many European jurisdictions impose specific tax rules that continue to apply even after residence has been established abroad. Two key aspects to be aware of are exit taxation—particularly relevant for business owners and shareholders—and the persistence of limited tax liability on certain categories of income.  

In Germany, for example, exit taxation can be triggered when a tax resident holding a substantial share in a corporation (generally at least 1% of the shares during the last five years) gives up tax residency. The system treats the emigration as if the individual had sold their shares, crystallizing unrealized capital gains for taxation purposes, even though no actual sale has taken place. This measure is designed to prevent taxpayers from shifting their residence abroad to dispose of shares tax-free. While certain deferral options may exist—especially when moving within the European Union or European Economic Area—the rules are strict, and relocating outside Europe, such as to Tahiti, typically results in an immediate tax obligation. Business owners and investors therefore face a significant planning consideration before departure.  

Beyond the one-time exit tax, individuals may also remain subject to limited tax liability in their home country depending on the sources of their income. Germany, Switzerland, and Austria, for instance, continue to tax certain categories of income derived from domestic sources, such as rental income from local real estate, business operations still maintained domestically, pensions, or director’s fees from local corporations. Nonresident taxation is usually applied through withholding taxes or domestic assessments, and double tax treaties may influence the allocation of taxing rights and the ability to claim credits abroad.  

The combination of exit taxation and ongoing limited tax liability underscores that moving to a non-European jurisdiction such as French Polynesia is legally and fiscally more complex than a simple change of address. Expatriates need to carefully evaluate both their retained income streams and their ownership of significant assets, and they should seek professional advice well in advance of departure to ensure compliance, mitigate double taxation, and align their relocation strategy with the legal requirements of both their home state and their new country of residence.  

Correct Preparation for the Move

Making the transition to life in French Polynesia—whether on the main island of Tahiti or in one of the outer islands—requires careful planning, especially from a legal, fiscal, and administrative perspective. Because French Polynesia is an overseas collectivity of France, it follows unique immigration rules and a distinctive tax regime, separate in many respects from metropolitan France. Below is a practical checklist to help ensure your move is smooth, compliant, and financially sound:  

1. Verify Residency and Visa Requirements  

• EU/EEA/Swiss nationals: French Polynesia is not part of the EU, but as it is under French sovereignty, citizens of these jurisdictions typically enjoy facilitated entry. Verify whether long-term residency or work permissions are still required for stays over 90 days.  

• Non-EU nationals (including U.S., Canadian, Australian, etc.): Obtain the correct long-stay visa via the French consulate in your country of residence, followed by a residence permit application once you arrive in Tahiti. Start the process well in advance—processing can take several months.  

• Work authorizations: If your move involves employment, secure an approved work contract or business license before applying for resident status. French Polynesia maintains strict labor regulations to protect local employment.  

2. Ensure Proper De-Registration from Your Home Country  

• Tax authorities: Notify your domestic tax administration of your change in residency to avoid double taxation. Submit required exit forms and provide your date of departure. Reporting obligations differ by jurisdiction; for example, the United States requires continued annual reporting regardless of residency, while many European countries require formal deregistration for a tax residence “break.”  

• Social security and healthcare: Deregister from any mandatory national health or pension systems as required and clarify whether you can maintain contributions voluntarily. This is especially critical for individuals considering eventual return or ongoing entitlement to benefits.  

• Local municipality or residence registry: In countries where residency is tied to local municipal records (common within EU member states), inform the local registration office of your departure.  

3. Plan for Healthcare Coverage

• As a resident, you may qualify for Caisse de Prévoyance Sociale (CPS), the local social security and healthcare provider in French Polynesia. Check your eligibility and coverage start date.  

• Secure international health insurance to cover the initial transition, or if you are not planning on contributing to CPS immediately.  

4. Banking and Currency Transition  

• French Polynesia uses the CFP franc (XPF), pegged to the euro. Research local banking options and the possibility of opening an account before or soon after arrival.  

• Notify your home-country bank of your relocation to avoid frozen accounts due to “suspicious” foreign usage and consider maintaining dual accounts for a transition period.  

5. Housing and Logistics

• Begin your property search in advance. While there are no foreign property purchase restrictions, many expatriates rent initially before committing to a purchase.  

• Review local lease laws and tenant protections, which can differ from those in metropolitan France.  

6. Documentation Preparation  

• Carry notarized and apostilled copies of critical documents, such as birth certificates, marriage or divorce decrees, academic credentials, and professional qualifications.  

• If necessary, arrange for French-language translations certified for official use.  

Final Thought

Relocating to French Polynesia requires more than just an adventure-ready spirit—it demands proactive compliance with legal, tax, and administrative systems. Clarifying visa status, formally breaking ties in your home country, and securing healthcare and fiscal structures will set you on stable footing for your new residency in Tahiti or beyond.  

Automatic Information Exchange (CRS)

French Polynesia, including Tahiti, is not an independent country but an overseas collectivity of France. This distinction is crucial in the context of international tax cooperation, as French Polynesia does not maintain a separate banking or tax information exchange regime. Instead, it falls under France’s international commitments. France is a full participant in the OECD’s Common Reporting Standard (CRS) and engages in the automatic exchange of financial account information with a wide range of jurisdictions worldwide.  

This means that although French Polynesia operates its own tax system (notably without personal income tax), local financial institutions are still subject to the CRS framework through France’s obligations. Banks and financial institutions in Tahiti and elsewhere in French Polynesia are therefore required to perform due diligence on account holders who are tax resident abroad and report relevant financial information to the French tax authority, which then exchanges this data with the non-resident’s home country if it is a participating jurisdiction. 

For foreign nationals holding bank accounts in Tahiti, the implication is clear: these accounts are not hidden from international oversight. If the account holder is tax resident in a CRS-participating country, their account information may be automatically transmitted to their domestic tax authority. As a practical matter, foreign residents should assume that standard international transparency rules apply, despite French Polynesia’s distinct local fiscal environment.  

In short, while French Polynesia’s tax regime is unique and generally light compared with metropolitan France, individuals cannot rely on financial secrecy. Banking in Tahiti falls within the global CRS network via France’s participation, underscoring the importance of full compliance with home-country reporting obligations.