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All foreign nationals are admitted on a visitor permit; extensions are processed through the Bureau of Immigration and Labor. Palau has no pre-arrival visa — entry is granted on arrival.
Employer must sponsor the application through the Bureau of Immigration and Labor; a labor market test showing no qualified Palauan citizen is available for the position is required.
For investors and business owners operating in Palau; requires a minimum investment and compliance with foreign investment rules. Duration is tied to the business license validity.
Palau issues a 30-day visitor entry permit on arrival to citizens of most countries. Extensions up to 90 days are available from the Bureau of Immigration. Long-stay visas for employment or investment are issued through the Bureau of Immigration in consultation with the relevant ministry. Palau is known for its exceptional marine environment and growing dive tourism industry.
Work permits in Palau require employer sponsorship from a licensed Palauan business and approval from the Bureau of Labor. The local labor preference rules require demonstrating no qualified Palauan is available for the position. Processing typically takes 4–8 weeks and permits are tied to the sponsoring employer.
Spouses and dependent children of valid work permit holders may apply for dependent residence status through the Bureau of Immigration. Dependents seeking employment must obtain their own work authorization.
Palau does not levy income tax on wages, making it one of the few no-income-tax jurisdictions in the Pacific. A gross revenue tax of 4% applies to businesses. There is no corporate income tax. Palau uses the US dollar and does not have a separate VAT, though import duties apply.
Healthcare in Palau is limited to Belau National Hospital in Koror plus a few clinics. For serious medical conditions, patients are typically evacuated to Guam or the Philippines. Comprehensive international health insurance with medical evacuation coverage is essential for all expats in Palau.
Banking in Palau is served by a small number of institutions including PNCC Bank and Bank Pacific. Palau uses the US dollar, which simplifies foreign transactions. Opening accounts requires valid identification and immigration documentation. Electronic banking options are limited by Palau's small market size.
Palau does not have a formal citizenship by investment program. However, the government welcomes investment in tourism, renewable energy, and sustainable development sectors, with facilitation through the Palau Investment Authority. Substantial investors may receive long-stay business authorizations.