Pristine Paradise of World-Class Diving & Marine Conservation
Yes, but a narrow one: a progressive Wages & Salary Tax of 6%, 10%, and 12% withheld from employment income. There is no broad worldwide personal income tax with itemized deductions.
The Palau Goods and Services Tax — a 10% consumption tax on most goods and services introduced on 1 January 2023, replacing the old gross-revenue-only model for registered businesses.
If you are not PGST-registered and earn under $50,000 gross, you are outside the 4% Gross Revenue Tax but still pay a small business license fee. Above $50,000 (non-registered), the 4% GRT applies to turnover.
Palau does not operate a general capital gains tax or an estate/inheritance tax comparable to larger economies. Confirm any specific transaction with the Division of Revenue & Taxation.
7% is deducted from the employee's gross wages and the employer contributes a matching 7%, separate from the wages and salary tax.
Belau National Hospital in Koror is the only full-service hospital and national referral center. Private clinics and dental practices supplement it, but there is no second major hospital.
Residents contribute to Palau's National Health Insurance / Healthcare Fund, but you should still hold private cover — and above all comprehensive medical evacuation insurance — because serious cases are treated off-island.
Patients are referred or medically evacuated abroad through the Ministry of Health's Medical Referral Program — typically to Manila, Guam, Taiwan, or Hawaii. This is why medevac insurance is critical.
Not always. Pharmacy stock is limited on a small island. Bring an adequate supply of essential medications and a copy of your prescriptions, and plan refills well ahead.
No — English is official and used everywhere in business and government. But learning basic Palauan phrases is warmly received and helps you integrate.
Yes, relative to the U.S. mainland. Nearly everything is imported and carries a 10% PGST, so groceries, fuel, and electricity (from imported fuel) are notably pricier.
No. Palau has no buses or trains. You'll need a rental car, taxis, or hotel shuttles, and boats for island hopping.
It has improved with submarine fiber and is workable in Koror, but it's pricier and less consistent than a big city, and weaker outside Koror. Test it before committing and keep a mobile backup.
Generally yes — violent crime is low. The bigger practical risks are ocean conditions and sun exposure, so respect the sea and stay sun-safe.