Country tax profile · 2026
Palau income tax
What a nomad, retiree or founder needs before moving to Palau: the real rate, what actually gets taxed, and the residency bar you must clear. Local currency: USD.
Palau tax calculator
Enter your income to estimate what you would pay in Palau, as an employee or running your own company, and see the best-value cities. Get the full breakdown plus a vetted advisor by email.
How much is income tax in Palau?
Palau taxes personal income at rates up to 12%. Only salaries earned in Palau are taxed; foreign and investment income is not.
Compiled by MyNomadWorld for Palau and currently being re-verified against primary sources. Confirm with a local adviser before relying on it.
Capital gains, wealth & property tax
- Capital gains: None. Palau does not tax capital gains or investment income
- Wealth tax: No net wealth tax in Palau
Inheritance & gift tax in Palau
No inheritance or estate tax in Palau Not applicable
Corporate tax & VAT
The standard corporate profits tax is 12%.
How to become a tax resident of Palau
Wages and Salary Tax applies to wages earned in Palau regardless of residence, on a territorial basis. Foreign source and investment income is not taxed.
Cost of living & lifestyle
Cost of living is about 85% of the US level, with average purchasing power near $23k (PPP). Pick a city below to see its monthly climate and cost.
Banking in Palau
You will want a local or multi-currency account for rent, bills and getting paid.
For receiving income and moving money the day you arrive, Wise lets you hold and convert 40+ currencies and get paid like a local. Open a free Wise account →
Wise link is an affiliate link; we may earn a commission at no cost to you.
Climate & cost by city
Average monthly temperature (°C) and rainfall. Climate: Open-Meteo ERA5; cost of living: World Bank PPP (same-year pairing), omitted where unavailable.
Who can help you in Palau
Vetted partners for the move: immigration and tax lawyers, relocation services, banking and eSIM, guides and local experts. One Gold partner and up to three standard listings per country.
Expats in Palau
The free Palau expat community: who is already there, who is arriving, the Telegram group and straight answers on the paperwork. Expats in Palau →
Members see each other by first name, origin and plans. Emails stay private.
Planning a move to Palau?
The headline rate is the easy part. Residency, banking and exiting your current tax net are where it goes wrong. Get matched with a vetted Palau advisor.
Talk to a Palau advisor →Palau income tax FAQ
How much is income tax in Palau?
Palau taxes personal income at rates up to 12%. Only salaries earned in Palau are taxed; foreign and investment income is not.
Does Palau tax capital gains?
None. Palau does not tax capital gains or investment income
How do you become a tax resident of Palau?
Wages and Salary Tax applies to wages earned in Palau regardless of residence, on a territorial basis. Foreign source and investment income is not taxed.