On 15 February 2021, Palacios signed with Swiss Super League club Basel; penning a contract until 2025. He joined Basel's first team for their 2020–21 season under head coach Ciriaco Sforza. Palacios played his domestic league debut for his new club in the away game in the Kybunpark on 27 February as Basel were defeated 1–3 by St. Gallen. He scored his first goal for the club on 15 August 2021 in the Swiss Cup away game as Basel won 7–0 against amateur club FC Schönenwerd-Niedergösgen. He scored his first league goal for the club in the away game in the Swissporarena on 28 November as Basel won 3–1 against Luzern.
