Palau

Investor Visa

Palau's Investor Visa allows foreign nationals who hold a Foreign Investment Approval Certificate (FIAC) and maintain at least a 25% equity interest in a Palau-based business to reside in the country for up to five years. The program operates under Title 13 of the Palau National Code for immigration provisions and the Foreign Investment Act (Title 28, Chapter 1) for investment requirements. It is administered by the Bureau of Customs and Border Protection (BCBP) for visa processing, with investment certification handled by the Foreign Investment Board (FIB). A maximum of four Investor Visas may be issued per single FIAC.

• Obtain a Foreign Investment Approval Certificate (FIAC) from the Foreign Investment Board
• Minimum investment of USD 500,000 in a qualifying business enterprise
• Hold at least 25% equity interest in the approved enterprise, as certified by the FIB
• The business must maintain a workforce of which at least 20% are citizens of Palau
• No felony convictions (sworn statement required)
• Police clearance from the Palau Bureau of Public Safety and from current place of residence
• Physical examination

• Foreign Investment Approval Certificate (FIAC) with certification of at least 25% equity interest
• Physical examination report
• Police clearance from current place of residence
• Sworn statement that applicant has never been convicted of a felony
• Notarized statement of purpose
• Recent passport-size photograph (2"x2", taken within 6 months)
• Valid passport or travel document
• W-2 wage and tax documentation
• Marriage license (if claiming spouse as dependant)
• Birth certificate (if applicable)
• Employer consent letter and release letter

The visa is valid for up to 5 years but cannot exceed the term of the FIAC. If the FIAC expires or is revoked, the visa also terminates. Renewal is possible subject to continued validity of the FIAC, with applications submitted at least 7 days before expiration. Full documentation must be resubmitted for renewal.

A maximum of 4 Investor Visas may be issued per single FIAC. Dependants who are not eligible for Investor Visas may apply for separate Dependent Visas, which require a USD 50 monthly extension fee, police clearance, sworn statement regarding felony convictions, and other standard documentation.

Before applying for an FIAC, investors must complete several steps: reserve a business name with the Corporate Registrar at the Office of the Attorney General, pay the registration fee to the Bureau of the Treasury and register the company, and identify a business location with a provisional agreement with the landowner or landlord including title search, clearances, and zoning approvals if necessary. The FIB has 90 days to review FIAC applications. Foreign nationals cannot own land in Palau, so business premises must be leased from Palauan citizens or entities.

Certain business sectors are reserved exclusively for Palauan citizens:

• Wholesale or retail sale of goods
• All land transportation (bus, taxi, car rental)
• Tour guides, fishing guides, diving guides, and water transportation services
• Travel and tour agencies
• Commercial fishing for non-highly migratory species

Additional sectors may be designated as semi-restricted by the FIB, requiring a Palauan partner.

Businesses pay a Business Profits Tax of 12% on net income (for PGST-registered businesses) or a Gross Revenue Tax of 4% (for non-PGST registered businesses earning over USD 50,000). Wages and salary tax applies at progressive rates: 6% on the first USD 8,000, 10% on USD 8,001-40,000, and 12% above USD 40,000. The Palau Goods and Services Tax (PGST) is 10% on goods and services. FIAC holders must pay an annual fee of USD 500 per non-citizen employee.

The process involves two stages. First, obtain an FIAC from the Foreign Investment Board (90-day review period). Once approved and certifying at least 25% equity interest, apply for the Investor Visa at the Division of Immigration (MOJ Building, 2nd Floor, Koror, or via email at immigration@bcbp.pw). The visa issuance fee is USD 50. Processing typically takes 5-10 working days. Businesses must file quarterly reports with the FIB.

• Palau has no naturalization pathway based on residency or investment -- citizenship requires recognized Palauan ancestry
• The visa term is tied to the FIAC term; if the FIAC expires or is revoked, the visa terminates
• Palau implemented a new Corporations Act on January 20, 2025, with an online business entity registry, improving the ease of starting and operating a business
• PGST-registered businesses must collect and remit the 10% goods and services tax, and Business Profits Tax is payable quarterly in installments

Links

• https://bcbp.pw/?page_id=165
• https://fibpalau.github.io/
• https://investmentpolicy.unctad.org/investment-laws/laws/327/palau-foreign-investment-act

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