Promote:
Invest in Palau
A short guide for companies expanding into Palau: the economy at a glance, the rules and steps to set up, and who can help, each with its source.
1. Palau at a glance
PopulationEstimate
17,663
The World Bank reports a population of 17,663 in 2025.
Source: World Bank WDI, Palau population, 2025 (opens in a new tab) · as of 2025
GDPEstimate
US$345 million
GDP was US$345.0 million in fiscal year 2025 (October 2024 to September 2025), in current prices, the World Bank reports.
Source: World Bank WDI, Palau GDP, 2025 (opens in a new tab) · as of FY2025 (October 2024 to September 2025)
GDP per personEstimate
US$19,532
GDP per person was US$19,532 in fiscal year 2025 (October 2024 to September 2025), in current prices, the World Bank reports.
Source: World Bank WDI, Palau GDP per person, 2025 (opens in a new tab) · as of FY2025 (October 2024 to September 2025)
Real GDP growthEstimate
6.3%
Real GDP growth was 6.3 percent in fiscal year 2025 (October 2024 to September 2025), the World Bank reports.
Source: World Bank WDI, Palau real GDP growth, 2025 (opens in a new tab) · as of FY2025 (October 2024 to September 2025)
InflationEstimate
3.0%
Consumer prices rose 3.0 percent in the year to the second quarter of 2026, the statistics office's provisional index shows.
Source: Palau Bureau of Budget and Planning, consumer prices, 2026 Q2 (opens in a new tab) · as of 2026 Q2
Foreign direct investment inflows
US$57.1 million
Inward foreign direct investment was US$57.118 million in 2025, UNCTADstat reports.
Source: UNCTADstat, Palau inward direct investment flows, 2025 (opens in a new tab) · as of 2025
The currency is the United States dollar.
Source: World Bank WDI, Palau GDP series metadata (opens in a new tab) · as of October 8, 2026
2. Before you set up
The investment agency, any one-stop route, the sectors reserved for nationals and the zones, as the guide found them.
The Foreign Investment Board reviews applications and issues foreign investment approval certificates under the Foreign Investment Act.
Source: Palau Foreign Investment Board, home page, minutes to September 2026 (opens in a new tab) · as of November 1, 2026
Section 105 reserves wholesale and retail sale, transport, tours and most commercial fishing to citizen-owned businesses, and requires a citizen co-owner for six other activities.
Source: Palau Foreign Investment Act, 28 PNCA chapter 1 (opens in a new tab) · as of November 1, 2026
RPPL 11-11 creates one tax free zone, the Capitol TFZ, within two miles of the dome of the Olbiil Era Kelulau at the National Capitol Complex.
Source: Palau RPPL 11-11, goods and services tax reform law (opens in a new tab) · as of November 1, 2026
3. Steps to set up
The main steps, in order, each with the body responsible and its official page.
Setting up in Palau
- Register a corporation, partnership or other entity in the online registry before you apply for foreign investment approval.Financial Institutions Commission, Office of the Registrar of CorporationsOfficial page (opens in a new tab)
Source: Palau Registrar of Corporations, re-registration notice, December 2025 (opens in a new tab) · as of November 1, 2026
- Apply to the Foreign Investment Board for a foreign investment approval certificate.Foreign Investment BoardFiling fee US$500; US$2,500 for a hotel or other lodging facilityOfficial page (opens in a new tab)
Source: Palau Foreign Investment Board, application checklist (opens in a new tab) · as of November 1, 2026
- Get a business license and tax registration, and register for the goods and services tax if you hold a certificate.Bureau of Revenue and TaxationOfficial page (opens in a new tab)
Source: Palau RPPL 11-11, goods and services tax reform law (opens in a new tab) · as of November 1, 2026
- Open at least one account at a bank licensed by the Financial Institutions Commission.Financial Institutions CommissionOfficial page (opens in a new tab)
Source: Palau Foreign Investment Act, 28 PNCA chapter 1 (opens in a new tab) · as of November 1, 2026
Show 3 more set-up steps
- Secure land by lease, since only citizens hold freehold title, and confirm the term with the land authority.Palau Public Land Authority; State Public Land AuthoritiesOfficial page (opens in a new tab)
Source: Palau Ministry of Finance, Palau Development Plan 2023 to 2026 (opens in a new tab) · as of 2023
- Apply for visas and work permits for non-citizen staff through the Division of Immigration.Bureau of Customs and Border Protection, Division of ImmigrationOfficial page (opens in a new tab)
Source: Palau customs bureau, license and permit forms page (opens in a new tab) · as of November 1, 2026
- Get environmental permits for earthmoving, discharge or water systems where your project needs them.Environmental Quality Protection BoardOfficial page (opens in a new tab)
Source: Palau Environmental Quality Protection Board, page with December 2025 notice (opens in a new tab) · as of November 1, 2026
4. Organizations that help investors
Start with FIB and BCBP. Each card links to the organization’s own site.
Each card says what it can help with:Get adviceFind financeMeet requirementsResearch markets
- This guide lists every national body found with evidence dated 2025 or later; fewer than twelve qualify, and each of the five needs has one. Source (opens in a new tab)
Investment and business setup
- Meet requirements
Foreign investment approval board
FIB
Foreign Investment Board
Reviews applications for foreign investment approval certificates and publishes the Act, regulations and application forms.
Visit FIB (opens in a new tab)Source: Palau Foreign Investment Board, home page, minutes to September 2026 (opens in a new tab) · as of November 1, 2026
- Meet requirements
Company registry and bank regulator
FIC
Financial Institutions Commission
Runs the online corporate registry through its Registrar of Corporations and licenses banks.
Visit FIC (opens in a new tab)Source: Palau Registrar of Corporations, re-registration notice, December 2025 (opens in a new tab) · as of November 1, 2026
Customs and tax
- Meet requirements
Customs and border authority
BCBP
Bureau of Customs and Border Protection
Clears exported goods through ASYCUDAWorld and runs the immigration and biosecurity divisions.
Visit BCBP (opens in a new tab)Source: Palau customs bureau, export procedure page (opens in a new tab) · as of November 1, 2026
- Meet requirements
Revenue and tax authority
BRT
Bureau of Revenue and Taxation
Issues business licenses and tax registrations and collects the goods and services tax and other national taxes.
Visit BRT (opens in a new tab)Source: Palau Bureau of Revenue and Taxation, home page (opens in a new tab) · as of November 1, 2026
Chambers and industry associations
- Get advice
Chamber of commerce
PCOC
Palau Chamber of Commerce
Represents businesses registered in Palau and offers membership with networking events and training discounts.
Visit PCOC (opens in a new tab)Source: Palau Chamber of Commerce, home page (opens in a new tab) · as of November 1, 2026
5. Worth knowing
Reserved sectors
Section 105 keeps wholesale and retail sale, transport, tours and most commercial fishing for citizen-owned businesses and requires a citizen co-owner for bakeries, bars, handicraft shops and other activities.
What to do: Check section 105 against your business activity before you apply.
Sources: Palau Foreign Investment Act, 28 PNCA chapter 1 (opens in a new tab); Palau Foreign Investment Board, application checklist (opens in a new tab) · as of November 1, 2026
Company registration
The Financial Institutions Commission launched an online corporate registry on January 20, 2025, while the Board's checklist still names the Attorney General's office for the Registrar.
What to do: Register through the Commission's online registry before you apply to the Board.
Sources: Palau Registrar of Corporations, re-registration notice, December 2025 (opens in a new tab); Palau Foreign Investment Board, application checklist (opens in a new tab) · as of November 1, 2026
Land leases
The development plan says only Palauans hold freehold title, and says land leased to non-Palauans often cannot be accessed by Palauans.
What to do: Expect to lease land and confirm its term and conditions with the land authority.
Source: Palau Ministry of Finance, Palau Development Plan 2023 to 2026 (opens in a new tab) · as of November 1, 2026
Goods and services tax
RPPL 11-11 set a 10 percent goods and services tax and a zero import tax from January 1, 2023, and requires every certificate holder to register for the tax.
What to do: Register with the Bureau of Revenue and Taxation and confirm the current rate.
Sources: Palau RPPL 11-11, goods and services tax reform law (opens in a new tab); Palau Bureau of Revenue and Taxation, home page (opens in a new tab) · as of November 1, 2026
Show 1 more
Fisheries reform
The President's July 22, 2026 address says a reform package to resize the national marine sanctuary was sent to the legislature, and no change in law is confirmed here.
What to do: Watch the Olbiil Era Kelulau before you start a fishing or fish-processing project.
Sources: Palau President, State of the Republic Address, July 2026 (opens in a new tab); Palau National Marine Sanctuary Regulations, December 2019 (opens in a new tab) · as of November 1, 2026
6. How Promote:Global helps
- Compare Palau with other countriesSet Palau beside other countries on investment momentum, fundamentals and trade access, before site, tax and legal work.
- Find advisors and service firmsAsk an advisory firm a scoped, paid question, or browse firms that list their own services, from legal work to logistics.
- Organize your next stepsKeep each product and market in a project, with a roadmap of steps you work through.
Turn this guide into your Palau project.
Use Promote:Global to explore markets, understand requirements and organize your next steps.
Promote:Palau is an independent guide by Promote:Global, not an official government portal. The organizations named here are independent public and membership bodies, not Promote:Global partners, and every link goes to their own site.
Facts read from public sources, with an editorial cut-off of November 1, 2026. Nothing here is investment, legal, tax or sanctions advice. Check current status with the organization before you rely on it.