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Palau
Oceania (incl. Pacific Islands)
Lucky Nomads World Index
62.66 / 100
0.30
Global rank
#139
Corporate tax
12%
Personal tax
12%
Lucky Nomads Proprietary Indices
22 scoring dimensions scored independently using a deterministic methodology built on primary sources and structured analytical inference.
- SafetyShield Index7.4 / 10
- Affordability Index5.1 / 10
- Entry Ease Index5.9 / 10
- Tax Freedom Index8.8 / 10
- WiFi Index5.2 / 10
- Admin Ease Index6.1 / 10
- Healthcare Index7.2 / 10
- City Comfort Index7.2 / 10
- WeatherComfort Index5.7 / 10
- Banking Index5.1 / 10
- GeoStability Index8.3 / 10
- Justice & Order Index7.0 / 10
- Quality of Life Index7.5 / 10
- Open Society Index6.7 / 10
- Flight Index2.5 / 10
- Environmental Quality Index8.5 / 10
- English Index6.8 / 10
- Wealth Protection Index7.5 / 10
- AI Access Index5.3 / 10
- Economic Openness Index7.2 / 10
- Market Depth Index2.1 / 10
- ClimateShield Index5.6 / 10
Country snapshot
- Capital
- Ngerulmud
- Population (approx.)
- 17,695
- Area (km²)
- 459 km²
- Currency code (ISO 4217)
- USD
- Currency name
- United States dollar
- Main airport IATA code
- ROR
- Airport name
- Roman Tmetuchl International Airport
General facts
- Minimum monthly cost
- From $2,330/month
- Main languages
- English
- Jurisdiction type
- Country
- Region
- Oceania (incl. Pacific Islands)
- Web TLD
- .pw
- Phone calling code
- +680
Web TLD and phone codes are general references and can differ for territories or special numbering plans.
Tax system
- Marginal CIT (corporate income tax)
- 12%LowWorldwide
- Marginal PIT (personal income tax)
- 12%LowTerritorial
Corporate taxation basis: Worldwide. The country generally taxes worldwide income of resident companies.
BPT applies to resident businesses at 12% on net income. Dividends and profit distributions by Palau-resident entities are exempt at the recipient level. Non-residents fall under BPT only via a Palauan permanent establishment per Tax Circular 2024-01. No structural exemption exists for foreign-source corporate income, though cross-border flows remain marginal in practice.
12% Business Profits Tax (BPT) on net income for businesses registered for the Palau Goods and Services Tax (PGST). Businesses with annual gross income above USD 50,000 not registered for PGST pay a 4% Gross Revenue Tax (GRT) on turnover. Businesses below USD 50,000 are exempt from BPT and GRT but pay a small business license fee. Reform effective January 1, 2023 (RPPL 11-11).
Personal income tax basis. Territorial. The country taxes income arising in or derived from its territory. Foreign-source income is generally exempt, subject to source-based rules that may vary by income type.
Wages and Salary Tax is limited to Palauan-source employment and self-employment income. Foreign-source dividends, interest, capital gains, rental income, and pensions are not taxable for resident individuals. No remittance trigger, no subject-to-tax test, no partnership exception. The territorial principle is structural and unconditional.
Progressive Wages and Salary Tax with three brackets since the 2023 reform: 6% up to USD 8,000, 10% on USD 8,001 to 40,000, 12% above USD 40,001. The 12% top marginal rate is the structural cap. Social security adds a flat 7% employee plus 7% employer to ROPSSA on gross wages with no cap. No capital gains, wealth, or inheritance tax.
Tax percentages here are editorial reference figures for comparison, not individualized tax advice.
Special tax regimes
For companies
National Capitol Complex Tax Free Zone (Capitol TFZ)
AvailableGeographic tax holiday for businesses located within a 2-mile radius of the Olbiil Era Kelulau dome at Ngerulmud, Melekeok State.
You either qualify for Palau's special tax regimes, or you don't. GeoCompass determines your eligibility, highlights the applicable conditions, and helps estimate your potential tax exposure.
Check my eligibilityVisa and mobility
Your access
Visa need and length of stay for Palau. Saved on your device.
Overview
- Citizenship by investment
Not currently available
- Residence by investment
Available
- Remote work visa (digital nomad visa)
Not currently available
Programmes
Palau lists several residency and mobility routes across residence by investment, business founder routes, work (employer sponsored), work (self sponsored), family and dependant routes, and student and graduate routes. Lucky Nomads tracks these programmes as editorial reference points. Thresholds, documents, and personal eligibility are evaluated in GeoCompass against your exact profile.
9 programmes listed · 9 are marked available in our editorial review
Residence by investment
1 programmeCapital, property, fund, or declared investment routes that can lead to longer-term residence.
- Available
Elite Resident Visa
Business founder routes
1 programmeFounder, entrepreneur, or company-linked pathways for people building a business locally.
- Available
Investor Visa
Work (employer sponsored)
3 programmesEmployer-linked permits and skilled employment passes for hired professionals.
- Available
Foreign Government and International Organization Representative Visa (FG/IOR)
- Available
Government Employee Visa (GEV)
- Available
Work Permit
Work (self sponsored)
2 programmesSelf-sponsored work or freelance routes where you qualify without a local employer.
- Available
Missionary Visa
- Available
Resident Visa
Family and dependant routes
1 programmeSpouse, dependant, and family reunion style permits.
- Available
Dependent Visa
Student and graduate routes
1 programmeStudy-linked permits and post-study transition routes.
- Available
Student Visa
Not all residency routes are accessible. Some require minimum income, investment thresholds, local substance, or strict eligibility conditions. GeoCompass evaluates which options you can actually secure in Palau.
Evaluate my residency optionsVisa and programme labels reflect editorial research, not individualized legal advice. Thresholds, documents, and personal eligibility are evaluated in GeoCompass. Always confirm rules with official government sources before you plan a move.
Dimensions breakdown
Strongest dimensions
- Tax Freedom Index8.8 / 10Very favorable tax environment
- Environmental Quality Index8.5 / 10Very strong environmental quality index
- GeoStability Index8.3 / 10Very strong geostability index
Weakest dimensions
- Market Depth Index2.1 / 10
- Flight Index2.5 / 10
Published ranks by index
One row per leaderboard we publish (the composite index plus each proprietary dimension). A rank appears only when this country is currently in the published top 10 for that list. Open a row to see the full ranking. Hover an index name for the same short definition as elsewhere on the site.
This jurisdiction is not in the published top 10 on any of these lists right now.
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Founder, Lucky Nomads · Wealth manager
Researched from official sources, leading global indices and Lucky Nomads' own scoring.
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