5 Key Facts About Paraguay Tax Residency
Authored by Andrea Villegas
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%.
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 to acquire a Tax ID.
The previous process required you to either show your university diploma or make a deposit of $5,000 USD, money that you could get out of the bank without any further hassle. Now, you need to first become a Temporary Resident, wait two years, and then become a Permanent Resident. This, however, does not affect nomads and remote entrepreneurs that want to acquire the Tax ID, as you can also get it with your Temporary Resident card. Good news, right?
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.
You need to make a short visit to Paraguay
You can hire a verified expert such as Natalia 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 three-day visit to the country of Paraguay because they need to take your biometrics.
There is an alternative process to become 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 $70,000 USD in the country with a solid business plan. This helps you acquire Permanent Residency, and, therefore, get your Tax ID as well.
Remember though that you do not need to be a Permanent Resident to have a Tax ID in Paraguay. You can acquire it as a Temporary Resident too.
Paraguay Temporary or Permanent Residency Help
Temporary/Permanent Residency Full Service$ 2100 - $ 2100
Paraguay Tax Residency for Digital Nomads
Full-Service (Tax ID included) - Special Package$ 2600 - $ 2600
Only Temporary or Permanent Residency$ 2100 - $ 2100
Only Tax ID$ 500 - $ 500
Optional Add-on: Driver's License$ 300 - $ 300
Monthly Accountancy Rate$ 30 - $ 30
With Tax ID: 6 FREE months of accountancyFree
US Apostille Service for Personal Documents
Service Fee$ 200 - $ 250
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.
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