The Solomon Islands is a Melanesian archipelago state in the southwestern Pacific, with a population of approximately 720,000 across hundreds of islands. The country gained independence from the United Kingdom in 1978 and retains membership of the Commonwealth, with English as an official language. Its economy is dominated by natural resources — timber, fish, and increasing gold and nickel exploration — alongside subsistence agriculture. International engagement in the Solomon Islands has grown in strategic significance following the country's security agreement with China in 2022, which prompted responses from Australia, New Zealand, and the United States.
For internationally mobile individuals, the Solomon Islands is primarily of interest to those working in the resources sector, development aid, diplomacy, or with family connections in the significant Solomon Islander diaspora in Australia and New Zealand.
This guide is for general information only. Tax rules and regulatory frameworks change. You should seek independent professional advice before making financial decisions. The value of investments can fall as well as rise.
Tax Residency
The Inland Revenue Division administers the Solomon Islands tax system. Tax residency arises if an individual is ordinarily resident in the Solomon Islands, typically meaning they have their habitual home there for the relevant income year.
Solomon Islands residents are taxed on their worldwide income. Non-residents are taxed only on Solomon Islands-sourced income.
Income Tax (PAYE and Annual)
Solomon Islands personal income tax applies at progressive rates:
| Taxable Income (SBD) | Rate |
|---|---|
| 0 – 15,000 | 0% |
| 15,001 – 30,000 | 11% |
| 30,001 – 60,000 | 23% |
| 60,001 – 120,000 | 35% |
| Above 120,000 | 40% |
The Solomon Islands dollar (SBD) is the local currency, managed with some USD reference. At current rates, the income tax bands are modest in GBP terms (SBD 120,000 is approximately £10,500), meaning the 40% top rate applies relatively quickly for expatriate professional salaries.
Foreign nationals employed in the Solomon Islands by Solomon Islands-registered employers (including NGOs, mining companies, and government contractors) are subject to PAYE withholding.
Capital Gains and Inheritance Tax
The Solomon Islands does not levy a formal capital gains tax or inheritance/estate duty. Property transfers attract stamp duties at modest rates.
Wealth Tax
No wealth tax.
Pensions
National Provident Fund (SINPF): The Solomon Islands National Provident Fund is a compulsory defined-contribution savings scheme for formally employed Solomon Islanders and qualifying expatriates. Employee contribution: 5%; employer contribution: 7.5%. The SINPF manages significant assets by Pacific standards.
UK State Pension: No bilateral social security agreement with the UK. UK State Pension is paid to Solomon Islands residents but frozen — not uprated.
UK private pensions: No UK–Solomon Islands DTA. HMRC domestic withholding applies.
Banking and Financial Services
Major banks operating in the Solomon Islands include BSP Financial Group (formerly Bank South Pacific), ANZ, and BRED Bank (part of French Banques Populaires group, present since the territorial BRED Pacific regional expansion). Banking infrastructure is concentrated in Honiara (the capital) and limited on outer islands.
The SBD is a managed currency; significant FX volumes flow through correspondent banks. For expatriate savings, offshore accounts in Australia, New Zealand, or the UK are standard.
Natural Resources and Investment
The Solomon Islands' principal internationally relevant sectors are:
- Timber: Historically the main export; logging has been at unsustainable levels, drawing international concern. The forest estate is diminishing.
- Mining: Gold is produced (Gold Ridge mine had a difficult operational history following ethnic tensions in 2000 and 2014 flooding; operations have been intermittent). Nickel and bauxite deposits are under exploration.
- Fisheries: The exclusive economic zone supports significant foreign fishing licences and some domestic processing.
- Hydrocarbons: Offshore exploration has been conducted but no commercial production as of 2026.
Foreign investment in land or natural resources requires licensing under the Foreign Investment Act. Land ownership by foreigners is significantly restricted — customary land tenure (covering most of the country's land area) means land cannot generally be purchased freehold by foreigners.
Cost of Living
Honiara has a moderate to high cost of living for imported goods and international-standard services (given supply chain logistics to a remote archipelago). Basic local produce and housing outside the capital are inexpensive. Private healthcare is very limited; medical evacuation to Australia is the standard approach for serious conditions.
Diaspora and Remittances
The Solomon Islands diaspora in Australia and New Zealand has grown significantly following the introduction of seasonal worker programmes and Pacific engagement visa schemes. Remittances are a growing share of household income in many communities.
For UK-resident individuals with Solomon Islands family connections, remittance management is typically the primary financial planning consideration relating to the islands (see the general remittances framework in our Pacific island guides).
Key Compliance Issues for UK Nationals
UK SRT: Days in the Solomon Islands are foreign days for the UK SRT.
UK IHT: UK-domiciled individuals with Solomon Islands-sited assets (e.g., a long-term property lease, business interests) include these in their worldwide estate for UK IHT purposes.
No UK–Solomon Islands DTA: UK domestic rules apply; no formal treaty relief mechanism is available.
Practical Financial Planning Tips
Resources sector employment packages: Negotiating contracts carefully is important — packages for expatriate workers in the resources sector often include allowances, housing, medical evacuation insurance, and ROE (Rest and Recuperation) travel. Maximise offshore savings during high-earning years.
Medical evacuation insurance: Non-negotiable. Ensure adequate medical evacuation coverage to Australia or New Zealand for any serious medical event.
Offshore savings accumulation: Maintain primary savings and investment relationships in Australia, New Zealand, or the UK. Do not hold significant SBD-denominated savings — currency risk and limited local investment options are both concerns.
SINPF entitlements: Understand your SINPF balance and withdrawal rights on departure from Solomon Islands employment. For short-term expatriates, the balance may be withdrawable on departure.
Legal advice for land-related interests: If your business or employment involves land leases or resource extraction licenses, the customary land system is complex. Specialist Solomon Islands legal advice is essential.
How Global Investments Can Help
For UK nationals or diaspora members with Solomon Islands connections, we provide UK-side financial planning, offshore investment management, pension and retirement planning, and estate planning for cross-border families.
For Solomon Islands-specific legal and tax advice, we can refer to appropriate regional specialists in Honiara or Australia.
Contact us for a consultation.
This guide is for general information only and does not constitute financial advice or a personal recommendation. The value of investments can fall as well as rise and you may get back less than you invest. Tax rules, pension legislation, and investment regulations change — always verify current rules and seek advice from a qualified independent financial adviser before making any financial decisions.