Cost of Living in Palau

The cost of living in Palau is relatively high compared to other Pacific Island nations due to its reliance on imports. This guide covers typical expenses for housing, food, utilities, transportation, and healthcare.

Housing

Housing costs in Palau vary significantly by location:

• Rent (1-bedroom, city center): $800 - $1,500 per month
• Rent (1-bedroom, outside center): $500 - $900 per month
• Purchase (city center, per sq ft): $150 - $300
• Purchase (outside center, per sq ft): $80 - $150

Utilities

• Electricity: $0.30 - $0.45 per kWh (relatively high due to diesel generation)
• Water: $30 - $60 per month
• Internet: $80 - $150 per month (limited bandwidth)
• Mobile Phone Plan: $30 - $80 per month

Food and Groceries

Food costs are elevated due to import dependence:

• Monthly Groceries: $400 - $700 per person
• Meal (inexpensive restaurant): $10 - $20
• Meal (mid-range, three-course): $40 - $80
• Domestic Beer: $3 - $5
• Imported Beer: $4 - $7

Transportation

• Fuel (gasoline per gallon): $5 - $7
• Taxi (per km): $1 - $2
• Car Rental (per day): $50 - $100
• Bicycle: Common local transport option

Healthcare

• Doctor Visit (private): $50 - $100
• Health Insurance (private, monthly): $100 - $300
• Dental Cleaning: $50 - $100

Tax Impact on Cost of Living

Palau's tax system helps offset some living costs:

• No VAT or sales tax on purchases (0% consumption tax)
• No social security contributions
• No wealth or property taxes on primary residence (nominal land tax only)
• Flat 9.5% PIT rate above $10,000 keeps the tax burden moderate