Palau is officially known as the Republic of Palau and gained it’s sovereignty in 1994. Prior to this, it was a territory of the USA and is an island nation which is located in the Pacific Ocean. The country gets significant financial help from the US and under the Compavt Free Association, the right of Palau’s defense and military establishment is with the US.
Palau is carved into 16 states and these are known as municipalities. There are several islands , but the islands that have the most real estate in Palau are Angaur, Babeldaob, Koror and Peleliu. These islands are also the most populous among the other islands. The economy is Palau consists mainly of tourism and fishing. Subsistence farming is done by people. Most tourists come here for snorkeling and diving and in 2001 numbered 50,000. There are no property taxes for those that purchase real estate in Palau. Other taxes are moderate and the income is taxed in brackets of 9.3%, 15% and 19.6%. The corporate taxes for the businesses are 4% while general sales tax is charged at 7.5%.
The current population is around 21,000 and 70% of them are natives to Palau. Palau real estate for sale can be leased for a minimum period of 50 years and all amenities are provided.
The real estate in Palau is relatively inexpensive and a 10,800 square feet lot would costs about US$100,000 for a 50 year lease period and a one time payment. Those that aren’t native to Palau can lease the properties for a period of 50 years with an extension for further 49 years. Sometimes there are land disputes that happen since the ownership of the lands isn’t very clear. Many of the lands may be jointly owned by the clans or may be individually owned. This is one f the problems that affects the foreign investment in the Palau real estate for sale. Beautiful villas and luxury apartments are available for rentals that face the sea and are located on the mountain side.