Marshall Islands (MH)
A remote Micronesian atoll nation using USD, with English as an official language, a Compact of Free Association relationship with the United States, high imported-goods costs, limited medical capacity, and relocation risks centred on immigration status, housing supply, land tenure, health evacuation, and outer-island logistics.
Buying Property in Marshall Islands
The full buying process, transaction costs, mortgage, and legal requirements.
The Marshall Islands Constitution provides that land cannot be sold — only leased. Foreigners are constitutionally prohibited from owning land outright. All land is held through a unique three-tier customary system: Iroij (paramount chiefs) hold title to entire islands or portions of islands; Alap (clan elders) hold title to several parcels under their Iroij; and Dri Jerbal (workers/users) hold rights to specific parcels. Any valid land transaction requires the consent of all three relevant rights-holders. Foreigners can only access land through negotiated leases, typically for 25–55 years with renewal options; some leases extend to 99 years by agreement. The currency is the US dollar (USD). There is no property tax and no capital gains tax in the Marshall Islands. For the overwhelming majority of expats, renting is the only realistic path — lease transactions are complex, slow, and require specialised local legal counsel.
Rent vs. Buy
Renting is strongly recommended for all ordinary expats. Leasing (not buying) is the only foreign option, and even short-term lease negotiations can take months due to the requirement for consent from all customary rights-holders. The buyer pool for lease transfers is tiny, making exit difficult. Property investment only makes sense for expats with deep community ties, major employer backing (e.g., US government or military-affiliated), or an approved long-term investment structure. Americans can reside in the Marshall Islands without a visa under the Compact of Free Association, but this does not change land access rules.
Buying Process — Step by Step
Understand the constitutional prohibition on foreign land ownership
1 day — legal fact, not a process stepThe Marshall Islands Constitution establishes that land cannot be sold, only leased. Foreigners cannot purchase freehold land under any circumstances. This is a constitutional constraint, not a bureaucratic process. Confirm the legal position with a local lawyer before committing any funds.
Identify the land parcel and all customary rights-holders
2–12 weeks or moreEvery parcel of land has at minimum three separate rights-holders: the relevant Iroij, the Alap, and the Dri Jerbal. All must consent to any lease. Identifying and locating all holders — many of whom may live abroad in the Marshall Islands diaspora (Hawaii, Pacific Northwest, Arkansas) — is often the longest step. The Land Registration Authority (established 2003) has documented only a small percentage of land titles and is largely dormant; customary records and community knowledge are the primary sources.
Hire a lawyer experienced in RMI customary land law
1–3 weeks to engageEngage a lawyer admitted to practise in the Republic of the Marshall Islands (RMI) with specific experience in customary land, lease drafting, and government approvals. This is non-negotiable — customary land law is highly specialised and title disputes are common. The RMI Attorney General's office or Supreme Court records can indicate which lawyers have relevant experience.
Negotiate and draft the lease agreement
1–6+ monthsNegotiate lease terms directly with all consenting customary rights-holders. Key terms: lease duration (typically 25–55 years, up to 99 years by agreement), annual rent and escalation clauses, permitted use, improvements and ownership of structures at lease end, renewal options, dispute resolution venue, compensation provisions, and access rights. Under the Constitution, no lease of customarily held land is lawful without the approval of the Iroij, Alap, and Senior Dri Jerbal.
Obtain government approval via the Attorney General's office
4–12 weeksLeases involving foreign nationals require review and approval by the RMI government, typically through the Attorney General's office or the Ministry of Natural Resources, Environment and Commerce. Government approval confirms the lease does not violate constitutional or statutory requirements.
Commission a land survey and carry out full due diligence
1–3 monthsCommission a licensed surveyor to confirm boundaries, coastal/flood-risk exposure (critical given climate change and storm surge risk), access roads, utility availability, and neighbour agreements. Check for any competing claims in Traditional Rights Court (TRC) records. Outer-island properties require travel and may have very limited surveying availability.
Register the lease and complete payment
2–6 weeksRegister the executed lease with the Land Registration Authority or the relevant Registrar of Lands. Registration fees are minimal and set by the Registrar. Ensure all rights-holders have received agreed payments and that consent documents are signed and witnessed. Satisfy bank source-of-funds and KYC requirements for any international payment.
Transaction Costs
| Cost Item | Amount | Notes |
|---|---|---|
| Lawyer fees for lease drafting and customary land due diligence | USD 3,000–20,000+ | More for disputes, multi-holder negotiations, or outer-island travel. This is the most critical cost — do not cut corners here. |
| Land survey and valuation | USD 500–6,000+ | Outer-island surveys require travel and logistics, significantly increasing cost and time. Limited licensed surveyors available. |
| Annual lease rent to customary rights-holders | USD 500–10,000+/year (negotiated) | Varies by location, land area, and negotiating position. Escalation clauses matter significantly over a 50-year lease term. |
| Lease registration fee | USD 50–500 | Minimal government registration fee set by the Registrar of Lands. |
| Construction contingency (if building) | 20–50% above quoted construction cost | All materials must be imported — freight costs, customs duties, salt corrosion, limited local labour, and logistics delays make construction significantly more expensive than comparable projects in continental locations. |
| Total estimated transaction cost (excl. construction) | USD 5,000–30,000+ in fees for a standard lease negotiation | No property transfer tax and no capital gains tax in the Marshall Islands. Main costs are legal and professional fees. |
The Notary — Mandatory for All Purchases
The Marshall Islands does not have a civil-law notary system. Legal documents are drafted, witnessed, and executed by RMI-admitted lawyers or authorised government officials. Lease agreements are executed before witnesses and submitted to the relevant government authority for approval and registration. Foreign documents used in the Marshall Islands must be apostilled or consularly authenticated. The Traditional Rights Court (TRC) is a constitutional court with exclusive jurisdiction over disputes involving customary land rights — its decisions are final on matters of customary land title.
Mortgage
Mortgage access for foreigners is severely limited. Standard mortgage collateral relies on freehold title, which foreigners cannot hold. A leasehold can theoretically serve as collateral, but Marshallese banks are cautious about lending against customary land due to the complexity of consent and the risk of lease termination disputes. Most foreign property investments in the Marshall Islands are cash-funded or employer-arranged.
50–100% cash funding is realistic for most foreign lease transactions; formal mortgage financing is rarely available
Foreigners should not assume financing is available. Bank of Marshall Islands (BOMI) and Bank of Guam serve the local market but have very limited appetite for foreign-linked leasehold lending. US military/government affiliated individuals may access US federal housing programs in some circumstances under the Compact of Free Association. Any financing arrangement must be reviewed by the same lawyer handling the lease to ensure compatibility with customary land law.
Land Registry
The Land Registration Authority (LRA) was established in 2003 to create a voluntary register of customary land and a framework for recording ownership documents. As of 2026, the LRA has documented only a small percentage of total land titles and is largely dormant. Most land remains informally documented through customary records, community knowledge, and Traditional Rights Court decisions. For any lease transaction, a title search of both formal LRA records and TRC court records is essential. The Traditional Rights Court (TRC, rmicourts.org) is the authoritative body for customary land title disputes.
Taxes
There is no property tax in the Marshall Islands. There is no capital gains tax. There is no stamp duty on lease registration. Rental income from commercial leases may be subject to gross revenue tax or business licence fees depending on the structure. If the lease is held through a Marshall Islands company, corporate tax obligations may apply. Consult a local lawyer or accountant for the current tax position relevant to the investment structure.
New Build vs. Existing Property
New construction carries significant additional risk: all materials must be imported, freight and customs add 30–60% to mainland prices, qualified local labour is scarce, and construction must account for tropical storm, flood, and seawater corrosion conditions. Existing structures require inspection for rust, roof condition, septic system, rainwater tanks, salt corrosion, mould, and electrical compliance. Climate change and sea-level rise present a long-term existential risk to low-lying atolls — factor this into any long-term investment calculation.
Selling Property
Selling (transferring) a lease requires the consent of all customary rights-holders to the new lessee, negotiation of new terms with the rights-holders, and government re-approval. The buyer pool is extremely small. Exit can be very difficult and slow. Structures on the land at lease end may revert to the landowners depending on lease terms — negotiate and document this clearly at the outset.
Useful Links
Property Buying
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