Ngerulmud: what to see and whether to move there

Is it worth moving to Ngerulmud in 2026

Ngerulmud has been the capital of Palau, an island nation in the western Pacific, since 2006. It is little more than the government complex with parliament and the presidential offices on Babeldaob, the largest island, where a few hundred people live. The country's real life is in Koror, about half an hour away by bridge and highway: over half of Palau's population lives there, along with shops, banks, the hospital, schools and hotels. So people moving to Palau usually look for housing in or near Koror.

Palau attracts with warm seas, some of the world's best diving, safety, the US dollar as currency and light taxes. The downsides are high prices for everything imported, expensive internet, few flights and a ban on foreigners owning land. Russian citizens need no visa for up to 30 days.

Cost of living in Palau

Prices come from two independent price databases for 2025-2026 for Ngerulmud and Koror. Palau uses the US dollar, so no conversion is needed. Almost all food is imported and costs more than on the US mainland, and internet is one of the most noticeable expenses. There is almost no public transport, so most residents drive their own car or take taxis.

Where to live: Koror and around the capital

• Koror - the country's main town with shops, restaurants, the hospital and schools, where most foreigners live.
• Malakal - an island next to Koror with the port and dive centres.
• Arakabesang and Meyuns - quiet residential areas with lagoon views and hotels.
• Airai - a state on Babeldaob near the airport, cheaper housing and more space.
• Melekeok - the state where Ngerulmud stands, quiet villages near the government complex.

Housing in Palau is rented mainly through acquaintances and local group listings, and there are few offers, so start searching early.

Entry and residence

Russian citizens enter Palau visa-free for 30 days, extendable twice for a fee. Every tourist pays a $100 environmental fee on arrival, usually already included in the air ticket. Work requires an employment contract and a work permit arranged by the employer. Foreign investment requires approval from the government's foreign investment board, and some types of business are closed to foreigners and reserved for Palauan citizens.

Palau has no separate residence for remote workers, retirees or investors buying property, so long-term life in the country almost always goes through a job, your own business with foreign investment approval, or family.

Taxes in Palau

A tax reform has been in force in Palau since 1 January 2023. Wage tax was lowered, and those earning up to $15,000 a year get it refunded. The gross revenue tax was replaced by a 10% goods and services tax and a 12% business profits tax, while small businesses with turnover up to $50,000 a year pay a licence fee instead. Import duties were abolished, and excises apply to some goods such as fuel.

Renting housing and land

Under Palau's constitution only citizens and their companies may own land, so a foreigner cannot buy land or a house on it. Instead, long-term leases are used: private land for up to 50 years with renewal for up to 49 more, government land for up to 99 years. Before signing it is important to check who exactly owns the land, as land often belongs to clans and families and boundary disputes are common.

A regular apartment or house lease runs for a year with a deposit of one or two months' rent. Check furniture and appliances in advance: everything imported is expensive and slow to arrive.

Climate and daily life

The climate is tropical: around 27-31 degrees all year, high humidity and frequent downpours all year. Typhoons are rare but do happen. The official languages are Palauan and English, so English is easy to get by with. Palau is linked to the United States by a compact of free association, under which the United States is responsible for the country's defence. The national hospital is in Koror, and complex treatment is done abroad. Palau is one of the world's best diving destinations, with some of the strictest marine protection.

Pitfalls

• Foreigners cannot own land, only lease it long-term.
• Visa-free stay is only 30 days with extensions.
• No residence for remote workers or investors.
• Expensive internet and imported food.
• Few flights, with connections.
• Some types of business are closed to foreigners.

Murblz specialists help with the work permit and foreign investment approval and check land and lease contracts. A consultant in the chat will calculate the cost of support.