The cost of living in Timor-Leste in 2026 depends almost entirely on where and how you live. A single foreigner renting a furnished one-bedroom in Dili should plan on about $1,700–$2,300 a month, while someone living in simple local-style housing can get by on roughly $600–$1,000. A couple in Dili needs about $2,450–$3,650, and a family of four about $3,750–$6,000 before international school fees. Timor-Leste uses the US dollar, so every price here is already in USD and no exchange rate applies (prices checked in early October 2026). Rent is the big swing factor: crowd-sourced Dili data put a one-bedroom at about $750–$830, while national models that include rural towns put it near $140–$200. Below you’ll find rent, utilities, food, transport, healthcare, schools, taxes, visa costs, and sample budgets.
Quick Answer
- Single person, expat-style in Dili: about $1,700–$2,300 a month.
- Single person, local-style: about $600–$1,000 a month.
- Couple in Dili: about $2,450–$3,650 a month.
- Family of four in Dili: about $3,750–$6,000 a month, plus $17,000–$22,600 a year per child for international school.
- Rent, one-bedroom in Dili: about $750–$830 a month; a three-bedroom runs about $1,500–$2,730.
- Electricity: $0.12 per kWh for households.
- Minimum wage: $115 a month, unchanged since 2012; a raise to $154–$160 has been proposed.
- Currency: US dollar. Inflation is near zero in 2026.
Currency, Inflation, and Wages in 2026
The currency. The Government of Timor-Leste lists the US dollar as the national currency. Local centavo coins circulate for small change. If you earn in dollars, there is no currency risk. If you earn in euros, Australian dollars, or another currency, your purchasing power moves with that currency’s rate against the dollar.
Inflation. Prices are stable this year. The national statistics institute (INETL) reported that consumer prices fell 0.1% in the year to August 2026, while Dili prices rose 0.4%. Food got slightly cheaper, led by rice and sugar. Transport was the exception, up about 6% over the year, mostly from the cost of running a private vehicle.
The minimum wage. The national minimum wage is $115 a month and has not changed since 2012. In April 2026 the government and the Chamber of Commerce agreed to propose a raise to $154–$160, according to an official government release. The Timor-Leste workers’ union says that is too low and wants more than $200, as Tatoli reported. The proposal was headed to the Council of Ministers in May, but we found no official notice of a final decision by early October 2026.
Rent for one furnished one-bedroom in Dili costs about seven times the monthly minimum wage. Most Timorese families live in very different housing from the apartments foreigners rent.
Why Cost Estimates for Timor-Leste Vary So Much
Timor-Leste has very little price data. You will see monthly totals from about $500 to more than $3,300 for one person, and both ends can be “right” for different people.
| Data Set | What It Measures | Single Person | 1-Bed Rent |
|---|---|---|---|
| National model (June 2026) | population-weighted average of Dili, Baucau, Ainaro, and Maliana | $506 including rent | $137–$202 |
| Dili crowd-sourced averages (August 2026) | 59 price reports from 11 contributors | no total given | $754–$829 |
| Dili expat price index (October 2026) | fewer than 10 price reports; furnished housing | $3,333 | $825 (45 m² furnished studio) |
The low national figure reflects local housing across several towns. The high expat index assumes furnished housing, imported food, and frequent dining out in Dili. Our budgets below sit between these, built from the individual prices rather than either total.
Rent and Housing in Dili
Almost all foreigners in Timor-Leste live in Dili, where embassies, NGOs, UN agencies, and most businesses are based. Demand from these groups keeps rents for Western-standard housing high, while the supply of such housing is small.
| Housing Type | Monthly Rent (USD) | Basis |
|---|---|---|
| 1-bed, Dili city center | $800–$880 (average $829) | crowd-sourced averages, Aug 2026 |
| 1-bed, Dili outside center | $725–$790 (average $754) | crowd-sourced averages, Aug 2026 |
| 3-bed, Dili city center | $2,100–$4,500 (average $2,733) | crowd-sourced averages, Aug 2026 |
| 3-bed, Dili outside center | $1,450–$1,550 (average $1,507) | crowd-sourced averages, Aug 2026 |
| Furnished 85 m² apartment, normal area | about $1,970 | expat price index, Oct 2026 (very small sample) |
| Local-standard 1-bed, national average | $137–$202 | national model, June 2026 |
What to expect when renting:
- Housing standards vary widely. Expat-oriented houses and apartments usually come with air conditioning, a water tank, and sometimes a generator or security guard. Local housing is much cheaper but often lacks these.
- Payment terms. Landlords in Dili often ask for several months of rent up front. Negotiate this before you sign, and get a written agreement.
- Outside Dili. Towns such as Baucau and Maliana have very few rentals aimed at foreigners. Prices are lower, but options are limited.
- Short stays. Guesthouses and serviced apartments are the usual first stop while you look for a lease.
Utilities, Internet, and Phone
Electricity is the main utility cost, and it depends on how much you run the air conditioning. The state power company EDTL charges domestic customers $0.12 per kWh, according to its May 2026 budget presentation. At that rate, 300 kWh a month costs $36, and 800 kWh (heavy air conditioning in a house) costs $96.
| Item | Monthly Cost (USD) | Notes |
|---|---|---|
| Electricity | $36–$96 | 300–800 kWh at $0.12/kWh |
| Basic utilities, 85 m² apartment | about $150 | crowd-sourced average, Dili |
| Basic utilities, one person | $39–$102 | national model vs. Dili studio estimate |
| Home internet | $25–$72 | price depends heavily on speed and provider |
| Mobile plan with 10 GB+ data | $25–$30 | crowd-sourced range, Dili |
Internet in Timor-Leste is slower and more expensive than in most of Southeast Asia. Check the speed and data cap at your exact address before you sign a lease, especially if you work remotely.
Food: Groceries and Eating Out
Timor-Leste imports most of its packaged food, much of it from Indonesia and Australia. Local produce from markets is cheap. Imported dairy, cheese, wine, and Western brands cost as much as in Australia or more. A single person cooking at home spends roughly $200–$250 on a local diet and $300–$400 with many imported items.
| Item | Typical Price in Dili (USD) |
|---|---|
| Milk (1 liter) | $2.05–$2.33 |
| White rice (1 lb) | $0.42 |
| Eggs (12) | $2.61–$2.70 |
| Chicken fillets (1 lb) | about $4.30 |
| Beef (1 lb) | about $7.26 |
| Bread (1 lb loaf) | about $2.25 |
| Tomatoes (1 lb) | about $1.06 |
| Bananas (1 lb) | about $0.83 |
| Bottled water (1.5 liters) | about $1.00 |
| Mid-range bottle of wine | $12–$16 |
Prices are crowd-sourced averages from August–October 2026, based on a small number of reports.
Eating out ranges from very cheap to Australian prices:
- Meal at a local warung or inexpensive restaurant: about $5 (range $2.50–$10)
- Business-district lunch with a drink: about $9
- Three-course dinner for two at a mid-range restaurant: about $42.50
- Fast-food combo meal: about $8
- Cappuccino: about $3.75–$4.12
- Local draft beer: about $2.50
Transportation and Fuel
Dili has no formal bus network. Most locals ride microlets, small minibuses that run fixed routes for about $0.25 a ride. Foreigners mostly use taxis, hire a driver, or buy a car or scooter. Transport is the one category that got noticeably more expensive in 2026, with costs up about 6% over the year.
| Item | Cost (USD) |
|---|---|
| Microlet ride | about $0.25 |
| Monthly transport spending, microlets | $13–$30 |
| Taxi start | about $3.50 (range $2–$5) |
| Taxi ride, about 8 km | $7–$9 |
| Gasoline (1 liter) | $1.19–$1.41 |
| New compact car | $17,000–$23,300 |
Agree on the taxi fare before you get in. Roads outside the capital are rough and often slowed by landslides in the wet season (roughly November to April). A four-wheel-drive is common for anyone who travels to the districts.
Healthcare and Insurance
Public healthcare in Timor-Leste is officially free. The World Health Organization notes that patients are not billed for consultations or hospital beds in public facilities. It also points out the gaps: medicines and skilled staff are not available everywhere, and families often pay for transport to reach care. WHO certified the country malaria-free in July 2025, but dengue remains a risk.
For foreigners, the practical picture is different:
- Private clinics in Dili handle most expat care. A short private doctor visit costs about $59 in the small Dili price sample; national models put a basic visit near $16.
- Medicines: a six-day course of cold medicine is about $8, and a box of 12 antibiotic doses about $11.
- Serious cases are usually evacuated to Darwin, Bali, or Singapore. Medical evacuation can cost tens of thousands of dollars without insurance.
- Insurance: an international health plan that includes evacuation is the most important line in any expat budget. Prices depend on age, coverage area, and deductible, so get quotes before you move.
Schools and Childcare
Dili has a few international schools, and fees are high compared with local incomes. School directory data list these annual fees:
| School | Annual Tuition (USD) | Extra Fees |
|---|---|---|
| QSI International School of Dili (age 5+) | $17,000 (non-sponsored) / $20,300 (sponsored) | capital fee $1,600–$6,400 a year; $300 application |
| QSI preschool (ages 3–4) | $6,800 half-day / $8,300 full-day | $300 application |
| Dili International School (Year 1+) | about $22,600 | capital fee about $1,600 |
| Dili International School (preschool) | about $6,000 | — |
Source: school fee comparison. Dili International School figures are third-party estimates compiled in February 2026, so confirm with the school. Public schools teach in Tetum and Portuguese. Many employers that post staff to Dili cover school fees, so check your package.
For a family with two children at QSI, tuition plus the capital fee comes to about $37,200 a year, or roughly $3,100 a month.
Taxes in Timor-Leste
Timor-Leste has a simple, low tax system:
- Wage income tax: resident employees pay 0% on the first $500 of monthly wages and 10% above that. Non-resident employees pay a flat 10%, according to PwC’s tax summary.
- Personal income tax: residents pay 0% on annual taxable income up to $6,000 and 10% above it. Non-residents pay 10% on Timor-Leste income only.
- No VAT yet. Imports carry a 2.5% customs duty and a 2.5% sales tax. Hotels, restaurants, bars, and telecom providers pay a 5% services tax on takings above $500. Excise taxes apply to alcohol, tobacco, fuel, and luxury cars (details).
- VAT is coming. The government is preparing a VAT law and targeting 2027 for its launch. The rate has not been published. Parliament held a public seminar on the draft in September 2026, as VATCalc reported.
Visas and Residence Costs
Most visitors get a 30-day visa on arrival at Dili airport or seaport for $30, paid in US dollars cash. Citizens of Schengen countries, Indonesia, Malaysia, and some other countries can enter visa-free. The rules and fees below are summarized from the visa policy overview; the Migration Service lists the official visa types.
| Item | Fee (USD) | Notes |
|---|---|---|
| Visa on arrival | $30 | single entry, up to 30 days |
| Transit visa | $20 | stays under 3 days |
| Extension up to 30 days | $35 | total stay up to 90 days |
| Extension of 30–60 days | $75 | total stay up to 90 days |
To stay longer, you need a work visa, a temporary stay visa, or a residence permit. Most foreigners who live in Dili come with an employer, NGO, or embassy that handles the paperwork. Fees for these permits are not published in one place, so ask the Migration Service or your employer.
First-Month Setup Costs
Budget for these before your first month’s bills:
- Visa: $30 on arrival, plus $35–$75 if you extend.
- Temporary housing: a guesthouse or serviced apartment for two to four weeks while you search.
- Rent up front: often several months for a long-term lease, which can mean $2,000–$5,000 for a one-bedroom.
- Household items: imported goods are expensive. A 40-inch TV costs about $819 and a microwave about $345 in the Dili price sample.
- Transport: a used scooter or car if you plan to drive, or a hired driver.
- Cash: card acceptance is limited, so arrive with US dollars. Notes issued before 2000 are often refused.
Sample Monthly Budgets
These budgets combine the prices above. Health insurance and miscellaneous lines are planning allowances, not quoted prices.
| Expense (USD) | Single, Local-Style | Single, Expat in Dili | Couple in Dili | Family of Four in Dili |
|---|---|---|---|---|
| Rent | 200–400 | 750–830 | 830–1,200 | 1,500–2,730 |
| Utilities | 40–70 | 100–150 | 150–200 | 200–300 |
| Internet + mobile | 35–55 | 55–100 | 80–130 | 100–150 |
| Groceries | 200–250 | 300–400 | 500–700 | 800–1,000 |
| Eating out + leisure | 60–100 | 250–350 | 450–600 | 300–500 |
| Transport | 15–40 | 60–150 | 100–250 | 250–400 |
| Health insurance allowance | 0–60 | 100–200 | 200–400 | 400–700 |
| Miscellaneous | 50 | 100 | 150 | 200 |
| Total (USD) | $600–$1,025 | $1,715–$2,280 | $2,460–$3,630 | $3,750–$5,980 |
Local-style means renting basic local housing, eating mostly market food and local meals, and riding microlets. It is realistic for long-term residents who speak Tetum and adapt, less so for a new arrival.
Families: add about $3,100 a month for two children at QSI, which brings the total to roughly $6,850–$9,080.
Salaries vs. Living Costs
Local wages and expat budgets in Timor-Leste are worlds apart.
- Minimum wage: $115 a month, with a proposed raise to $154–$160.
- Typical local pay: national models put average take-home pay near $137 a month, close to the minimum wage.
- Expat and NGO pay: crowd-sourced Dili reports average about $3,600 a month after tax, reflecting international staff rather than local workers.
In practice, very few foreigners move to Timor-Leste on a local salary. Most arrive with a job at an embassy, a UN agency, an NGO, or a company in energy, construction, or telecom, often with housing included. If your package does not cover housing, rent will likely be your largest cost.
Leisure and Lifestyle
Dili has a small but steady expat scene, with beaches, diving off Atauro Island, and a handful of cafes and restaurants. Typical prices:
- Gym membership: about $50–$56 a month in Dili
- Cinema ticket: about $6–$7
- Basic pub dinner for two: about $26
- Italian dinner for two with wine in an expat area: about $44
- Cocktail at a downtown bar: about $6
- Men’s haircut in an expat area: about $13
Money-Saving Tips
- Negotiate the lease. Ask for monthly or quarterly payments instead of a large lump sum, and ask what’s included, such as water, security, or a generator.
- Shop at local markets for fruit, vegetables, and fish. Save imported groceries for items you can’t replace.
- Use microlets for daytime trips in Dili, and keep taxis for evenings and longer rides.
- Watch the air conditioning. At $0.12 per kWh, cooling is the main reason power bills climb.
- Buy insurance with evacuation cover. It costs money every month, but one uninsured evacuation can cost more than years of premiums.
- Check your employer package. Housing, school fees, and a vehicle are often included for international staff.
Safety and Practical Notes
Timor-Leste is generally calm, but petty theft and break-ins happen in Dili, and roads are a bigger daily risk than crime. Choose housing with good locks and lighting, avoid walking alone late at night, and drive with care. Portuguese and Tetum are the official languages, and English and Bahasa Indonesian are working languages, so learning basic Tetum helps with markets, taxis, and landlords. Timor-Leste became the 11th member of ASEAN in October 2025, which is gradually bringing more trade and investment links with its neighbors.
How Timor-Leste Compares With Nearby Countries
Dili’s expat housing costs are high for the region, but local food and transport are cheap. Many residents compare it with its nearest neighbor; see our guide to the cost of living in Indonesia, where Bali is a common weekend and medical-trip destination. Darwin is the other main gateway, so compare the cost of living in Australia. For other island nations with thin housing markets and import-heavy prices, see the cost of living in Papua New Guinea and the cost of living in the Philippines.
Frequently Asked Questions
How much money do you need to live in Timor-Leste per month?
A single foreigner in a furnished one-bedroom in Dili needs about $1,700–$2,300 a month. Living in simple local-style housing costs about $600–$1,000. A couple in Dili should budget about $2,450–$3,650, and a family of four about $3,750–$6,000 before school fees.
How much is rent in Dili?
Crowd-sourced averages from August 2026 put a one-bedroom at about $829 in the city center and $754 outside it. A three-bedroom costs about $1,500 outside the center and $2,100–$4,500 in the center. Local-standard housing costs far less.
What currency does Timor-Leste use?
Timor-Leste uses the US dollar, with local centavo coins for small change. Bring clean, newer notes, since notes issued before 2000 are often refused, and carry cash because many places do not take cards.
What is the minimum wage in Timor-Leste in 2026?
The minimum wage is $115 a month and has not changed since 2012. In April 2026 the government and the Chamber of Commerce agreed to propose a raise to $154–$160, but no final decision had been published by early October 2026.
Is healthcare free in Timor-Leste?
Public healthcare is officially free, but facilities are limited and medicines are not always available. Most foreigners use private clinics in Dili, where a short doctor visit costs about $59, and need insurance that covers medical evacuation.
Does Timor-Leste have VAT?
Not yet. Imports carry a 2.5% customs duty and a 2.5% sales tax, and hotels, restaurants, and telecom providers pay a 5% services tax. The government is preparing a VAT law and is targeting 2027 for its launch.
How much is a visa for Timor-Leste?
A 30-day visa on arrival costs $30, paid in US dollars cash. You can extend your stay to a total of 90 days for $35 or $75, depending on the length. Longer stays require a work visa or residence permit.
Conclusion
Timor-Leste is cheap for local life and expensive for expat life. The US dollar and near-zero inflation make budgeting predictable, but rent for Western-standard housing in Dili costs $750 or more for a one-bedroom, and imported food, private healthcare, and international schools add up fast. A single foreigner should plan on about $1,700–$2,300 a month, and families should budget for school fees separately. Before you move, check what your employer covers, get rent quotes for specific houses, and buy health insurance with evacuation cover.
Sources
- Government of Timor-Leste – country facts (currency, languages)
- INETL – Consumer Price Index, August 2026
- INETL – Consumer Price Index, July 2026
- SDI – minimum wage proposal, May 2026
- Tatoli – union calls for minimum wage over $200
- EDTL – 2027 budget presentation (electricity tariffs)
- WHO – Timor-Leste and universal health care
- PwC – Timor-Leste personal income tax
- PwC – Timor-Leste other taxes
- VATCalc – Timor-Leste VAT plans
- Visa policy of Timor-Leste
- Migration Service of Timor-Leste – visas and permits
- Doris – Dili international school fees
- Numbeo, Livingcost, and Expatistan – Dili and Timor-Leste crowd-sourced price data (August–October 2026)
