Incentives


Direct tariff-free access to the U.S. market

Products produced in Palau enjoy direct access to the U.S. (via Guam), under provisions of the Compact of Free Association between Palau and the United States.

Skilled Palauan Workforce Investment Act

Through 2024, employers who hire Palauan citizens who possess vocational certificates from Palau Community College may deduct an amount equal to 200% of wages paid from their annual gross revenue tax returns.

Farm Loan Program

The National Development Bank of Palau offers agricultural loans to Palauan citizens individually or as a partner in a joint venture with foreign investors. Details of the program can be found on the bank’s website at https://www.ndbp.com or by calling (680) 587-2578.

Professional Opportunities

Professionals in the fields of accountancy, architecture, engineering, law and medicine who wish to establish a business in Palau are exempt from the requirements of the Foreign Investment Act, provided standard professional certifications and/or licensing requirements are met.