Overview:
Palau has expanded its Elite Resident Visa Program to allow more businesses to participate in qualifying residential property arrangements. The new law sets a $20,000 visa fee and strengthens background checks and compliance requirements.
By L.N. Reklai
KOROR, Palau (Nov. 9, 2026) — President Surangel Whipps Jr. has signed into law changes to Palau’s Elite Resident Visa Program, allowing foreign applicants to enter into qualifying residential property arrangements with a broader range of businesses and entities while setting a $20,000 visa fee.
Whipps signed Republic of Palau Public Law No. 12-10 on Nov. 3, following its passage by the 12th Olbiil Era Kelulau on Oct. 27.
The president said he believes the legislation could be improved further, particularly because he sees little significant difference between an elite visa holder and a holder of a Foreign Investment Approval Certificate (FIAC).
He also questioned whether the $20,000 visa fee may be too steep.
“But at least it’s a step forward. We can still revisit the bill and improve it later,” Whipps said.
The new law amends Title 13 of the Palau National Code to modernize the elite resident visa program, encourage investment in high-value residential development and attract more long-term foreign residents.
Under the previous law, applicants were required to arrange the purchase or lease of a residence exclusively with Palauan citizens or entities wholly owned by Palauan citizens. The restriction was intended to ensure that economic benefits from foreign residency went directly to Palauan individuals and businesses.
However, lawmakers found that the restriction had discouraged investment in high-value residential developments, including luxury condominiums, and contributed to limited participation in the program.
Under the amended law, qualifying contracts may now be made with Palauan citizens, wholly Palauan-owned nongovernmental entities, clans, families, or corporations and other business entities registered and compliant with Palauan law.
The minimum contract value for purchasing or leasing a dwelling remains $250,000. For property purchases, payment must be made in cash, with at least $250,000 paid toward the full contract price before the visa is issued.
The law sets both initial visa issuance and renewal fees at $20,000. Both fees are
nonrefundable and must be paid to the National Treasury.
It also establishes an Elite Resident Visa Office within the Ministry of Finance to administer the program and conduct required background checks.
Applicants and their dependents living in Palau must meet criminal background requirements. Applicants must also disclose their financial circumstances, including income, assets, savings, liabilities and obligations, and authorize civil and criminal background checks.
The Ministry of Finance must establish a background-check processing fee of at least $500 per person. Collections will be deposited into a separate fund dedicated to covering background-check expenses.
The law also strengthens grounds for visa revocation, including failure to complete a required property purchase, disposing of a purchased dwelling without acquiring another of equal or greater value, insufficient financial resources for self-support, and failure to meet contractual payment obligations.
A visa holder facing revocation is entitled to a hearing before the order becomes final.
The amended program limits the number of foreign nationals holding current elite resident visas to 1,000.
The legislation took effect upon the president’s approval on Nov. 3.