How to send money to Palau in 2026: dollars without exchange in 1-2 business days and bank branches in Koror
In 2026 Palau runs on the US dollar, and the banks in Koror are insured under US rules. We explain how to send money from the US, Europe and Asia without an extra exchange, what Palau's new $889 million agreement with the US brought, how the 10% tax works and for how long a foreigner can lease land.
Money is sent to Palau in US dollars: it is the country's official currency and is credited as is. All three bank branches with US federal deposit insurance work in Koror, the country's main town. From the US, money moves within the American banking system; from Europe and Asia, in dollars through a correspondent bank in the US.
| From where and what | How it works on 9 October 2026 | Time |
|---|---|---|
| dollars from the US | to an account in Koror within the American banking system, without exchange | 1-2 business days |
| euros and other currencies | the sending bank buys dollars, then through a correspondent bank in the US | 2-4 business days |
| family support | to relatives' account at a branch in Koror, purpose: family support | 1-4 business days |
| land and office leases | to the landlord's account under the lease | by the contract date |
The table was checked on 9 October 2026 against the register of the US Federal Deposit Insurance Corporation.
Koror and the US dollar: a transfer without exchange and with deposit insurance
Palau has no currency of its own; prices, salaries and taxes are counted in US dollars. The banks with branches in Koror are part of the US federal deposit insurance system, so the recipient's money in the account is protected just as in a bank in Hawaii: up to $250,000 per depositor in one bank.
For a sender in the US, a transfer to Palau is almost no different from a transfer to another state. A sender in Europe should buy dollars from their own bank straight away: then the sum reaches Koror without a second exchange. A manager will suggest how to send your sum without unnecessary losses.
Palau lives on tourism and money under its agreement with the US, and the capital, Ngerulmud, is on the neighbouring island of Babeldaob. More about it is on the Ngerulmud page.
We will help you send money to Palau
Mistakes cost more than fees: euros exchanged into dollars twice on the way to Koror, incomplete branch details, paying a land lease without a checked contract and a large sum without papers on its source. We will help you avoid them: we will choose the route and currency of the transfer, gather the source-of-funds documents for the bank in Koror and carry out the transfer through licensed partners through to crediting.
Details and terms are with a manager in the chat: much depends on the sum, the currency and the purpose of the transfer.
$889 million from the US until 2043: what the new agreement brought
Palau is linked to the US by a Compact of Free Association. It was renewed in 2023, and on 9 March 2024 a US law came into force under which Palau will receive about $889 million over 2024-2043, as budget grants and contributions to a trust fund. By July 2024 the country had already received $66 million.
For anyone sending money to Palau this means one thing: the dollar will remain the country's currency, and the banks will remain part of the American system. Under the agreement, Palau citizens live and work in the US without a visa, so the most common transfer is from the US home.
A 10% tax on goods and services since 2023
The tax reform law was signed on 29 September 2021, and since 1 January 2023 Palau has had a goods and services tax at 10%. A company registers as a taxpayer when its annual turnover exceeds $300,000.
The transfer itself is not taxed: the 10% is paid on purchases and services within the country. If you are sending money to your business in Palau, the tax needs to be built into prices and settlements with suppliers.
Leasing land: up to 50 years from a private owner and up to 99 years from the state
Under the constitution, land in Palau is owned only by citizens and companies wholly owned by them. A foreigner leases a plot: up to 50 years from a private owner and up to 99 years from the state. Rent is transferred to the landlord under the lease.
If a land or house deal needs a complex payment arrangement, there are usually more options than it seems: a manager will choose a route.
An office or a warehouse in Koror is rented under an ordinary lease, and payment goes by transfer to the owner's account.
How much you send to Koror decides the documents
Up to $10,000. A purpose is enough: support for relatives, rent, studies.
$10,000-100,000. The branch in Koror checks the source of the money under US bank rules: you need six months of statements and a sale contract, an income certificate or a gift agreement.
From $100,000. You need a full file on the source of wealth and the deal contract; details are in proof of source of funds and sending large sums abroad, and moving capital on the capital relocation page. A manager will work out the cost of sending such a sum.
From Koror onward: to the US, the Philippines, Taiwan and Japan
To the USA, money from Palau goes as a transfer between American banks. Dollars are sent to the Philippines to the families of workers from Manila, and to Taiwan under trade contracts. In Japan the recipient's bank exchanges dollars into yen.
Sending money to nearby countries
- How to send money to Micronesia
- How to send money to the Marshall Islands
- How to send money to the Philippines
- How to send money to Indonesia
- How to send money to Taiwan
- How to send money to Japan
All countries and moving capital step by step are in the capital relocation section.
FAQ
Do you need to exchange dollars when sending money to Palau?
Is money in a Palau bank account insured?
What goods and services tax applies in Palau?
For how long does a foreigner lease land in Palau?
How much will Palau receive under the new agreement with the US?
We will suggest the best way to send your money
We will choose a transfer method for your amount and country, prepare the documents on the origin of the money for the bank, make the transfer through licensed partners and follow it until the money is credited. Ask your question in the chat - the manager will suggest the best terms and the cost. The legal side with banks and government bodies is handled by Murblz specialists and locally licensed partners.
Details and cost are with the manager in the chat. Describe your situation and we will reply right away.
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