Palau
No capital gains tax for individuals. Pioneering digital residency via blockchain (RNS/Palau ID), accepted as KYC at 30+ exchanges. PUSD stablecoin ($87M+ circulating). Wages taxed 6-12% progressive.
FATCA Partner
No
FATF Status
Clear
EU Blacklist
No
Dual Nationality
Allowed
CARF Status
Not yet committed
Bitizenship
Not yet
Crypto Tax Guidelines
No specific guidance published
Tax Rates
Activity Taxes
Staking
Not specifically addressed
Mining
May fall under Business Profits Tax (12%) if commercial
DeFi
Not addressed
NFTs
Not addressed
Taxable Events
Crypto → Fiat
Not taxable
Crypto → Crypto
Not taxable
Holding Period
No holding period benefit
No capital gains tax regardless of holding period
Regulation & Residency
Regulatory Body
Bureau of Revenue and Taxation; Palau Chamber of Digital Commerce
Residency Requirement
Digital Residency via Palau ID ($248); physical residency also available
Reporting Requirements
Standard tax filing with Bureau of Revenue and Taxation
Citizenship & Residency Path
Digital Residency via Palau ID (not physical citizenship); physical residency available through business/employment
Resilience & Plan B
Jurisdictional Resilience
How well-equipped this jurisdiction is for a crypto holder who wants stability, access, and protection.
JRS
Institutions (25%), banking (20%), tax clarity (20%), business (15%), privacy (10%), geopolitical (10%). Full methodology →
Plan B Readiness
How fast you can go from “I want to move” to “I’m a tax resident with banking and optionality.”
PBR
Business ease (25%), citizenship path (20%), dual nationality, quality of life & safety (15% each), Bitizenship (10%). Full methodology →
Notable Conditions
- →No capital gains tax for individuals
- →World's first blockchain-backed digital residency (Palau ID/RNS)
- →12,000+ digital residents including Vitalik Buterin
- →PUSD stablecoin (Ripple-backed, $87M+ circulating)
- →Palau ID accepted as KYC at Binance, OKX, Kraken, Coinbase Int'l
- →On-chain LLC registration ($500, 11 minutes)
- →Coral Bank (first digital neobank) launching Q1 2026
- →Wages taxed 6-12% progressive; crypto gains exempt
Living & Lifestyle
Cost of Living
Moderate
Banking Access
Low-Moderate
Quality of Life
Moderate
Lifestyle Scores