How to become a 0% Paraguay Tax Resident without living there
Authored by Danish Soomro
IMPORTANT NOTICE: Paraguay is changing the procedure to become a Permanent Resident, and acquire Tax Residency. It keeps being simple to apply, and the 0% Tax on Foreign Income is still on. You now need to apply for Temporary Residency first, and you do not need any university degree or deposit, but to pay the government fee.
Some months ago, 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.
Is Paraguay changing its Tax Residency law?
Yes, in late 2022-early 2023, Paraguay is changing the process to become a Permanent Resident and acquire Tax ID. However, you can still easily become a Temporary Residency or Permanent Residency and acquire your TAX ID. The 0% Tax on Foreign Income is not changing.
Why is Paraguay a top destination for Tax Residency for global entrepreneurs?
In one sentence, Paraguay’s taxes are territorial. People that 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’re making your money in the US, in Europe or in Asia, you do not have to pay any taxes as a Paraguay Tax Resident.
Is Paraguay a stable country?
Paraguay is a very stable country economically and politically. Paraguay is not so known.
How can I become a Tax Resident in Paraguay?
Usually, tax residency is established when you stay in a country for more than 183 days, but to get Paraguay's tax residency you do not have to stay so long. They only ask you to come once every three years.
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 you apply for Residency in Paraguay?
Residency means a visa: a temporary or permanent residency visa. You can now apply for Temporary Residency and after two year easily get your Permanent Residency and CEDULA.
Think of visiting Paraguay and other South American countries when you visit Paraguay for getting your Tax Residency. It will be worth it.
Remember to get travel insurance for the duration of your stay in case of any emergency.
How do I get my Tax ID in Paraguay?
Once you applied for the Temporary or Permanent Residency Visa, you register in 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.
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 bill.
How can Natalia help you get your Tax Residency in Paraguay?
She helps you revise that you have 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 to Spanish.
How much does it cost to get Paraguay’s Tax Residency?
Natalia offers a special package with visadb if you mention the code PAR22:
$2100 Residency Package (No Tax ID)
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, 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. 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?
You are not obliged to hire it.
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 VAT % in Paraguay?
What documents do I need to bring from my country to Paraguay?
- Birth certificate with apostille.
- Marriage certificate with apostille if you are married.
- Criminal record with apostille.
Do I need to stay 183 days in Paraguay to maintain my Tax Residency?
No, you just need to visit one time and every three years.
How many years after I apply for the Temporary Residency can I apply for the Permanent Residency in Paraguay?
You can apply after two years, and there is no need to reside in the country all the time during this period. You will need to provide a Local Police Background Check.
How many years after I apply for the Permanent Residency can I apply for the Citizenship in Paraguay?
You can apply after three years but you have to live in the country for citizenship.
Do I need a local Paraguayan address for getting 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 in your visit in this Travel Guide.
Permanent Residency (Retirement) Visa
Do not hesitate to reach out to Natalia on the service below. Mention PAR22 for the discount, and start saving money on taxes.
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