5 Key Facts About Paraguay Tax Residency

Paraguay Tax Residency is a popular setup for digital nomads and remote entrepreneurs because the country has a 0% tax policy on foreign-sourced income. It is one of the only countries with this policy. Even their VAT for Paraguay-sourced income is relatively low compared to other countries in Latin America and the world as it is 10%.

Watch our 2025 update for applying for Paraguay Tax Residency.

Paraguay Law Change in 2022

Paraguay changed its law in 2022 to become resident after 25 years

In October 2022, Paraguay changed its law to become a Permanent Resident, and, therefore, this affected the process of acquiring a Tax ID.

The previous process required you to either show your university diploma or make a deposit of USD 5,000, money that you could get out of the bank without any further bureaucracy.

1. Now, you need to first become a Temporary Resident, wait two years, and then become a Permanent Resident.
2. To become a Permanent Resident of Paraguay, you need to have an active Tax ID or a valid university diploma. You must also show some documentation including police background records.

This, however, does not affect nomads and remote entrepreneurs who want to acquire the Tax ID, as you can also get it with your Temporary Resident card.

Good news, right?

Criminal Records Certificate for Digital Nomads

Your criminal records certificate can be from the place where you last lived for three years

As a digital nomad, remote entrepreneur, or expat, you might not have lived in your country of residence or origin for the past years. That is not a problem as you can apply with a criminal records certificate of the place where you last resided for the past three years. Note that you would need to show an official ID of at least three years of issuance, for example, a driver’s license, resident card, or another identity card you might have.

If you have been nomadic for the past three years–don’t fret! You can always apply with a criminal records certificate of your country of origin.

Paraguay few days visit

You need to make a short visit to Paraguay to get your Temporary Residency

You can hire a verified Paraguay Temporary Residency expert to assist you with your documents, translations, and filing. She can also mail you your Tax ID once it is ready. However, you still need to pay a short visit to the country of Paraguay because they need to take your biometrics and wait for your Cédula.

Alternative Process to Paraguay Residency

There is an alternative process to become a Permanent Resident in Paraguay:

If you would like to become a Permanent Resident in Paraguay faster and not wait the two years of Temporary Residence, you can invest in the country.

The Paraguay Investor Visa allows you to invest USD 70,000 in the country with a solid business plan. This helps you acquire Permanent Residency, and, therefore, get your Tax ID as well.

You do not need to be a Permanent Resident to have a Tax ID in Paraguay. You can acquire it as a Temporary Resident too.

Natalia Scaglia

Immigration & Residency

Residencia Temporal o Permanente en Paraguay

Residencia en Paraguay

$ 2500 - $ 2500

,

(Usuarios antiguos) Residencia en Paraguay

$ 2100 - $ 2100

Natalia Scaglia

Immigration & Residency

Paraguay Temporary or Permanent Residency Help

Temporary/Permanent Residency Full Service

$ 2500 - $ 2500

,

OLD USERS: Temporary/Permanent Residency Full Service

$ 2100 - $ 2100

Natalia Scaglia

Nomad Visa Help

Paraguay Residencia Fiscal para nómadas digitales

Servicio Completo (NIF, Residencia Temporal)

$ 2600 - $ 2600

,

Trámite para obtener el NIF en Paraguay

$ 500 - $ 500

,

Opcional: Licencia de conducir

$ 300 - $ 300

,

Tárifa contable mensual

$ 30 - $ 30

,

Residencia Permanente para usuarios previos

$ 2100 - $ 2100

Natalia Scaglia

Nomad Visa Help

Paraguay Tax Residency for Digital Nomads

Full-Service (Tax ID included) - Special Package

$ 2600 - $ 2600

,

Only Tax ID

$ 500 - $ 500

,

Optional Add-on: Driver's License

$ 300 - $ 300

,

Monthly Accountancy Rate

$ 30 - $ 30

,

Permanent Residency for previous clients

$ 2100 - $ 2100

Paraguay Visa on Arrival

You need to get a visa on arrival to visit Paraguay

If your passport is from the United States, Canada, the United Kingdom, New Zealand, or Australia, remember that you need to get a visa on arrival when you enter Paraguay.

Other countries’ passports such as Pakistan or Vietnam need to acquire a visitor visa in advance at the Paraguay embassy in their country.

*No Tax Residency comes from the fact that Paraguay does not tax foreign-sourced income, to say, anything generated outside Paraguay.

Disclaimer: Visadb.io does not engage in or promote any practices that violate the tax laws or regulations of any country. We do not condone tax evasion or other illegal activities that could put our community at risk of legal or financial penalties. We recommend you hire a verified expert to see if the information on the page applies to your specific case. This blog entry is for reference purposes.

Note: Government processes and laws can change any day. We try our best to keep our contact updated in hours, but please, verify with an immigration expert for any questions or for your specific case which may vary from person to person.

References:

Ley Nº 6984 / DE MIGRACIONES - Updated October 2022

Información sobre VISAS :: Migraciones

Learn more:

Paraguay Tax Residency Complete Guide 2025

Nomads in Paraguay in 2025: All You Need

How to Become a 0% Paraguay Tax Resident without living there

Paraguay Tax Residency Law Change: All You Need to Know [Update]

How to become a Paraguay Tax Resident in 2025

Paraguay Map