Relocation intelligence
🇵🇼 Moving to Palau: tax, residency and cost of living
Palau levies a low wage tax of 6% to 12%, plus about 6% social security. The effective burden on an income worth roughly EUR 54,000 is around 17%. There is no classic corporate tax, but a 4% gross revenue tax and a recently introduced sales tax. The country uses the US dollar and is a renowned diving destination with a Compact of Free Association with the US, but small and remote.
Thinking of moving to Palau? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.
Key facts
- Top income tax
- 12%
- Corporate tax
- 4%
- Capital gains
- 0%
- Wealth tax
- No
- Inheritance tax
- No
- Cost of living index
- 50
- Safety
- 4/10
- Internet quality
- 3/10
- Visa-free destinations
- 52
- Foreigners can own property
- No
- Residency in
- 6 months
- Citizenship in
- 5 years
Taxes
Low wage tax 6% to 12% plus about 6% social security, effectively around 17% at EUR 54,000. No classic corporate tax, but a 4% gross revenue tax.
Residency and visas
Residence and work are accessible, with a growing tourism and diving sector, though the economy is small.
Property ownership
Land ownership is reserved for Palauans; foreigners can generally only lease.
Cost of living and quality of life
Palau offers spectacular diving and the dollar as currency, but is small and remote, with high costs and limited healthcare.
Passport and mobility
The Palauan passport gives visa-free access to about 52 destinations, with special access to the US via the Compact of Free Association.
Why people move to Palau
Low wage tax and the dollar
Wage tax rises to only 12% and the country uses the US dollar, limiting exchange-rate risk.
Leading diving destination
Palau is known for its pristine coral reefs and marine life, with a growing tourism sector.
Honest trade-offs
- Palau is klein en afgelegen, met hoge invoerkosten, een kleine economie en beperkte gespecialiseerde gezondheidszorg.
- Naast de loonbelasting geldt een omzetbelasting van 4% op bedrijfsomzet en sinds kort een verkoopbelasting.
- Grondeigendom is voorbehouden aan Palauers; buitenlanders kunnen doorgaans alleen pachten.
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