Oceania & Pacific · Micronesia

Palau

Palau sells a product called 'digital residency' that is not residency, and has no citizenship-by-investment route at all — its constitution reserves both land and nationality for Palauans by blood.

Last verified July 2026121 visa-free destinations

Tax position

Income tax (top)
graduated tax on Palau-source salary and wages; foreign-source income is outside the net
Capital gains
none
Wealth tax
none
Inheritance tax
none
Special regime
Territorial in effect — but only for people who are genuinely tax resident in Palau, which a digital residency ID does not make anyone
Territorial
Yes — foreign-source income generally outside scope
CFC rules
No
Exit tax
No
CRS
Not participating

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