Oct 01, 2007
An important issue that negatively affects Palau's investment climate is the uncertainty over land titles and land rights. Foreigners may only lease land in Palau for up to 50 years and a further allowable extension for up to 49 years. However, land ownership disputes are very common. The Palau Land Registration Act requires that all lands in Palau, private and public, be surveyed and registered in the country's Land Court. But a mere eight to ten percent of the land area was registered as of mid 1990s, and there are still ownership disputes even over these registered lands, i.e., whether these lands are individually owned or are owned by clans.