Federated States of Micronesia

The Federated States of Micronesia (FSM) is a sovereign island nation in the western Pacific comprising four states: Chuuk, Pohnpei, Kosrae, and Yap. FSM operates under the Compact of Free Association (COFA) with the United States, granting Micronesian citizens the unrestricted right to live, work, and study in the US without a visa — and reciprocally, US citizens may reside in FSM indefinitely. The economy is heavily aid-dependent, with the US providing substantial direct assistance under the Compact. There is no income tax on foreign-sourced income for non-residents, but limited infrastructure and geographic remoteness constrain economic development. Healthcare and higher education are limited locally, driving many residents to seek services in the US or Guam.