📅 Published at 13 July, 2022 & Last updated at 17 November, 2023

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

Authored by Danish Soomro

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

Table of Contents:

IMPORTANT NOTICE: Paraguay changed the procedure to become a Permanent Resident, and acquire Tax Residency in October 2022 making it easier. It keeps being simple to apply, and the 0% Tax on Foreign Income is still on. Nowadays, you need to apply for Temporary Residency first, and you do not need any university degree or deposit, but to pay the government fee. Check our recent blog entries to know more.

We had an incredible session with our verified expert for Paraguay, Natalia. Here you can check all you need to know about becoming a 0% Tax Resident in Paraguay.

Paraguay Temporary and Permanent Residency

How do you apply for Residency in Paraguay?

You must apply for Temporary Residency first, and, after two years, get your Permanent Residency.

What documents do I need to bring from my country to Paraguay to become a resident? 

  1. Birth certificate with apostille. 
  2. Marriage certificate with apostille if you are married. 
  3. Criminal record with apostille. 

How many years after I apply for the Temporary Residency can I apply for Permanent Residency in Paraguay? 

You can apply for Permanent Residency two years after you applied for Temporary Residency. There is no need to reside in the country all the time during this period, but you will still need to provide a local police background check in Paraguay.

How many years after I apply for Permanent Residency can I apply for Citizenship in Paraguay? 

You can apply after three years but you have to live in the country for citizenship. 

Paraguay Tax Residency

Is Paraguay changing its Tax Residency law?  

Yes, in late 2022/early 2023, Paraguay changed the process to become a Permanent Resident and acquire a Tax ID. The process got easier, and you can become a Temporary Residency and acquire your TAX ID without a $5000 deposit or university degree. The 0% Tax on Foreign Income is not changing, so digital nomads and entrepreneurs can still benefit from it.

Why is Paraguay a top destination for Tax Residency for global entrepreneurs?

In one sentence, Paraguay’s taxes are territorial. People who have their tax residency in Paraguay only pay taxes for the activities that they do inside the country, not outside. Not many countries have territorial taxes like Paraguay. This means that if you are making your money in the US, in Europe, or in Asia, you do not have to pay any taxes as a Paraguay Tax Resident. 

Paraguay Tax Residency Process

Do I have to live in Paraguay to become a Tax Resident?  

Usually, tax residency is established in the country where you stay for more than 183 days, but to get Paraguay's tax residency you do not have to stay so long. You have to pay one visit twelve months after you became a temporary resident, and once every three years as a permanent resident.

What is the process to become a Paraguay Tax Resident? 

First of all, you need to get your residency and Paraguayan ID, which in Spanish is called Paraguayan Cedula. Once you have that, you can apply for a Tax ID. 

How do I get my Tax ID in Paraguay?

Once you apply for the Temporary or Permanent Residency Visa, you register with the Tax Office. You sign some documents, provide a copy of your Cedula, and then receive your Tax Number. 

You can then show this Tax Number to your Tax Office in another country to let them know that you are a Tax Resident in Paraguay. 

You can become a Paraguay Tax Resident and legally start paying 0% tax on global income in a short time.

How much does it cost to get Paraguay’s Tax Residency?

Natalia offers a special package with visadb if you mention the code PAR22:

$2300 Residency Package (No Tax ID)

Do I need a local Paraguayan address for getting a Paraguay Residency and Tax ID?

Yes, and Natalia provides it included in the package. 

Is there any way of getting the Paraguay Tax Residency without setting foot in Paraguay?  

No, you have to be in Paraguay. 

However, Paraguay has a lot to offer. See all the things you can do during your visit in this Travel Guide.

What are my responsibilities as a Paraguay Tax Resident?

You have to present your VAT declaration every month even if you do not have any movements or bills. 

How can Natalia help you get your Tax Residency in Paraguay?

She helps you revise all the proper documents, picks you up from the hotel, and takes you to the immigration and ID office. Her services also include providing you with an address in Paraguay. She can also get you in touch with a local translator if you need to translate anything into Spanish. 

Do I need to stay 183 days in Paraguay to maintain my Tax Residency?

No. You only need to visit once after 12 months of having acquired your temporary residency, and once every three years when you become a permanent resident. 

Paraguay Residency Benefits and FAQ

Is Paraguay a stable country?

Paraguay is a very stable country economically and politically. Paraguay is not so well known, but it collides with Argentina, Brazil, and Uruguay.

Where can I travel to South America as a Paraguayan Resident?

You can travel to all Mercosur countries such as Argentina, Uruguay, Brazil, Chile, Bolivia, Venezuela, and Peru. 

How do I get money in Paraguay? Can I open a bank account from afar online?

After you have your Cedula, you can open a bank account, but not online. Our suggestion is that once you come here, you go to the bank to open an account. They will ask you for your Tax ID, and your Cedula. 

Is there dual citizenship in Paraguay?

This depends on your original country of citizenship, and the bilateral agreements with it. 

Does Paraguay offer social security or comprehensive health insurance? 

Yes, Paraguay offers social security, but you are not obliged to hire it. You can opt for private health insurance instead as in any other country.

Can I live and work in Paraguay after I become a resident? 

Yes, if you have a permanent residency, you can stay and like any Paraguayan, you have the same rights. You cannot vote, and there are a few restrictions such as you cannot go on a public charge.

What is the VAT Percentage in Paraguay?


Do not hesitate to reach out to Natalia on the service below. Mention PAR22 for the discount, and start saving money on taxes.

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 that you hire a verified expert to see if the information on the page applies to your specific case. This is a blog entry for reference purposes.

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