As one of the world’s smallest countries, nailing down the cost of living in Naoero versus the USA is not as simple as in other destinations. With the nation’s unique economic ecosystem, shaped by isolation, limited infrastructure, and reliance on imports, monthly expenses to live comfortably start at $700 for individuals and $1,500 for families.
A small tourism sector and limited economic diversity mean Naoero’s cost of living is largely determined by product shortages, government subsidies, and shifting supply lines. This guide provides insights into Naoero living expenses in USD for a single person or a family according to the latest data, and how living costs compare to the United States.
Naoero Living Costs: Key Takeaways
Overview of the Cost of Living in Nauru
Analysing Naoero’s living costs shows housing, transportation, food, and utility expenses contribute to a higher-than-average cost of living. With most Naoero residents earning around $750 monthly after tax, living a North American-style lifestyle can be challenging.
As a low-income tax country that provides free education, it can be attractive to international investors who earn a foreign income.
The cost of living in Nauru (Naoero) can swing significantly for some items compared to others. Despite its small population, it has a high population density with limited housing. Here is an overview of the average costs of primary living expenses in Naoero, according to livingcost.org.
| Expense | Single Person | Family of Four |
|---|---|---|
| Food | $310 | $815 |
| Rent and Utilities | $358 | $611 |
| Transportation | $31 | $101 |
| Total (Excluding Rent) | $341 | $916 |
| Total (Including Rent) | $699 | $1,426 |
Average monthly expenses in Naoero
The average monthly expenses to live in Naoero will largely depend on lifestyle habits. However, the country’s remote location and reliance on importing everything generally make average monthly living expenses high. Though price-related information is limited, a single person can expect to spend around $700 to $1,500 monthly, covering food, rent, transportation, and entertainment activities.
Food and Grocery Expenses
Expats moving to Nauru will find that most everyday food items, such as oranges, tomatoes, onions, cheese, and meats, are imported as the country has minimal agricultural production. Though there isn’t a detailed food price index, overall, the cost of groceries and basic necessities in Naoero is relatively high.
There are also limited restaurant options, although dining out in Naoero can be cheap. According to Numbeo, an inexpensive meal for one costs $6.92, compared to $20 in the United States.
| Item | Cost |
|---|---|
| Milk (1 liter) | $3.18 |
| Fresh white bread (500g) | $1.77 |
| Apples (1kg) | $24 |
| Fresh white bread (500g) | $359 |
| Bananas (1kg) | $18.86 |
| Chicken (1kg) | $12.57 |
| Beef (1kg) | $9.43 |
| Cheese (1kg) | $12.87 |
| Bottle of wine (mid-range) | $17.69 |
| Meal (inexpensive restaurant) | $10.61 |
| Three-course meal for two (mid-range restaurant) | $24.76 |
| McDonald’s combo meal or equivalent | $10.61 |
Utility Expenses
Energy in Naoero is primarily produced with fossil fuels, meaning the cost of utilities in Naoero is high compared to the USA and Australia. Basic utilities, including electricity, cooling, water, and garbage, account for a large portion of the cost of living in Naoero, costing $250 monthly on average. Expenses for internet in Naoero are reasonable. A 10GB monthly mobile phone plan costs $6.29 and wired broadband internet costs $25 monthly.
Housing and Rent Prices
Rent prices
Being a small island with limited real estate, the estimated monthly rent prices in Naoero can be high for an unfurnished higher quality apartment. According to Livingcost.org’s cost of living index, you’ll pay around $323 per month for a centrally located one-bedroom apartment and around $232 for a cheaper one-bedroom apartment outside the city center. Monthly rent for a three-bedroom city center apartment is approximately $598 and around $434 if located outside the city center.
Hotels in Nauru are relatively expensive when you consider that they only offer basic amenities. The average nightly rate is about $100.
Property purchase prices
Livingcost.org lists the average Naoero real estate price at $1,700 per square meter. That being said, investors must be aware that Naoero does not have an established real estate industry, and there is limited local information regarding property prices in a detailed housing price index. Property ownership is leasehold only, and the government maintains the right to reclaim land at any time for mining or rehabilitation.
Transportation Costs in Nauru
Though the infrastructure in Naoero is limited, moving around the island requires little thought due to its small land area. Naoero has just one main road that runs along its perimeter and is approximately 19.6 miles long.
The country does not have a public transportation system or local taxis, so there’s no need for a detailed transportation price index or equivalent commuter expense index. Most people living in Nauru use their own vehicles to travel across the island. Hitchhiking is also a popular way to move around. It’s common for residents to pay other locals for rides, which works out to $7.72 per five miles.
A flight with Nauru Airlines to key destinations connecting Naoero to the rest of the world such as Nadi, Fiji, and Brisbane, Australia costs $500 to $600 one way. Unlike other South Pacific nations like the Solomon Islands and Vanuatu, Nauru is a single-island territory, so there is no ferry travel between islands.
Vehicle ownership
Naoero is a zero-income tax country, but high import duties and shipping costs apply to vehicle imports. The actual import costs remain uncertain, and Naoero’s shallow coastline with exposed rock formations and lack of seaport means all vehicles are imported by air.
Costs can be expected to align with other South Pacific island nations at around $2,000 and $5,000 for shipping and up to 40 percent of the vehicle’s value for import costs, depending on the type and age. With the island’s main road covering a mere 19.4 miles, fuel cost factors are nominal.
Other living expenses in Nauru
Healthcare
The Republic of Nauru Hospital is Naoero’s main healthcare center, offering basic medical services. Given the country’s limited healthcare infrastructure, residents needing specialized treatments often travel to Brisbane, Australia, at a substantial cost when combined with out-of-pocket expenses for Naoero (Nauru) Citizenship by Investment healthcare services.
International healthcare insurers such as MSH International and AXA Global Healthcare provide coverage in Naoero. Expats can purchase plans for private health services starting from $400, which includes medical evacuation coverage.
Education
Public education in Naoero is compulsory and funded by the government until 18 years of age. According to Numbeo cost of living data, the monthly tuition for one child to attend preschool is $314, and the yearly total cost for an international primary school is $9,430.
Banking
Banking in Naoero is more expensive than in most islands, as the country not only has a small financial sector, but there is only one Nauru bank. This means that account holders pay higher maintenance fees and costs to transfer funds internationally.
However, the Naoero currency is the Australian dollar (AUD), which is stable and globally recognized, helping residents, businesses, and successful applicants of Nauru Citizenship by Investment for Indians and other foreign nationals avoid risks and higher costs when banking internationally.
Is Naoero expensive?
Naoero isn’t a luxury destination and the Nauru tourism sector doesn’t have a list of luxury activities, but is generally considered expensive nonetheless, as its remote location and dependency on imports make the average cost of living higher than most of the Oceanic islands. Almost everything, including basic food, fuel, and electronics, is shipped by sea or air.
Most locals live in government-subsidized housing, and with limited housing options, expats and visitors pay high accommodation prices, even for no-frills lodging. Electricity and internet services are also expensive, especially considering their lack of reliability.
Nauru Living Cost vs the USA, UK, and Australia
Economic Research Institute (ERI) statistics suggest that the affordability of food, transportation, housing, and healthcare is above the global average. From Livingcost.org data, living expenses in Naoero are lower than in the United States, Australia, and the UK. Grocery prices in Naoero are generally high, but other living expenses, such as rent, can be low compared to other countries.
| Item | Nauru | United States | Australia | United Kingdom |
|---|---|---|---|---|
| Food (single person) | $310 | $654 | $589 | $573 |
| Food (family of four) | $815 | $1,706 | $1,512 | $1,478 |
| Rent and Utilities (single person) | $358 | $1,593 | $1,445 | $1,515 |
| Rent and Utilities (family of four) | $611 | $2,641 | $2,426 | $2,540 |
| Transport (single person) | $31 | $101 | $239 | $179 |
| Transport (family of four) | $85 | $266 | $623 | $478 |
| Total (single person) | $699 | $2,398 | $2,273 | $2,267 |
| Total (family of four) | $1,511 | $4,613 | $4,561 | $4,496 |
| Monthly salery after tax | $732 | $4,433 | $4,122 | $3,269 |
| GDP per capita | $13,609 | $84,534 | $64,604 | $53,246 |
Cost of Nauru Residency
There isn’t much variation in the cost of Naoero (Nauru) immigration, as the options are limited and the country maintains a strict immigration policy. The cost of a Nauru employment or business visa costs about AUD $300 to $400 (USD $200 to $280). Nauru Citizenship by Investment costs $90,000 for a single applicant, plus $2,000 per family member.
The fee to hire a Naoero (Nauru) Citizenship by Investment lawyer varies, depending on their experience, your profile, and the agency they’re from. Investors are also required to pay a wire transfer, due diligence, and application fee totaling $12,200, which increases with the addition of dependents. The Nauru passport fee is $500 per passport.
