Paraguay Tax Residency Complete Guide 2024
Authored by Andrea Villegas
Table of Contents:
- Paraguay Temporary Residency
- Paraguay Permanent Residency
- Paraguay Tax Residency
- Paraguay Country Guide
Paraguay is an attractive destination for individuals and businesses seeking tax-efficient solutions. Paraguay Tax Residency offers a cost-effective and quick option to optimize the financial setup of digital nomads, remote entrepreneurs, and global expats because the country has a 0% tax on foreign-sourced income*.
Between Brazil, Argentina, and Bolivia, Paraguay has caught the interest of investors, digital nomads, retirees, and entrepreneurs. In this guide, you can find everything you need to know about the Paraguay Tax Residency program, exploring the benefits, requirements, and what you should know to make an informed decision.
If you prefer video, you can watch the complete Paraguay Tax Residency and Immigration live webinar with our verified expert, Natalia Scaglia, to learn about the requirements, benefits, obligations, and procedures below.
You can check all you need to know about becoming a 0% Tax Resident in Paraguay here:
Paraguay Temporary Residency
Paraguay Temporary Residency is the first step to obtaining the tax residency and becoming a fiscal resident in Paraguay. It can also be a great option if you want to live for a few years in South America and discover nearby countries like Argentina, Brazil, and more.
In this section, you can read the frequently asked questions about Paraguay Temporary Residency.
How can I obtain Paraguay Temporary Residency?
To obtain Paraguay Tax Residency, you must visit Paraguay and present the appropriate documentation to the immigration authorities, including your birth certificate and clean criminal records, and pay the government fee of 400 USD.
Once you complete the process, you will receive your Temporary Residence, with which you can acquire a Tax ID if you want to take advantage of Paraguay's 0% foreign-sourced taxation policies.
You can find the list of documents below or contact our verified expert, Natalia, and assess your case.
Which documents do I need to apply for Paraguay Temporary Residency?
If you want to acquire temporary residency in Paraguay, you need to present the following documents to the immigration authorities:
- Your valid passport or ID document
- If a consular visa is required, the Ministry of Foreign Affairs will verify it.
- Your proof of entry into the country
- Your birth certificate
- If you are married, a marriage certificate
- Current Criminal or Police Record Certificate at the National or Federal level of the country of origin or the country of residence in the last 3 (three) years from the age of fourteen
- Background certificate issued by Interpol from the age of fourteen
- Background Certificate for Foreigners, issued by the Computer Department of the National Police, from fourteen years of age
- Sworn statement before the National Directorate of Migration of commitment to comply with and respect the National Constitution, the laws, and other regulatory provisions that govern the national territory
- Sworn statement before the National Directorate of Migration of your profession, activity, or trade that you will carry out in the country and of the domicile established in the national territory
- Payment of the fee of the corresponding subcategory, which is around 400 USD
IMPORTANT NOTICE: All your documents must be translated to Spanish and apostilled or certified if applicable.
Applying for Paraguay Temporary Residency and Tax Residency can be complicated if you do it on your own, do not speak Spanish, and do not know the country's laws. Natalia, our verified expert, can assist you in the entire process. She has already helped hundreds of foreigners. Chat with her here.
Is there a digital nomad visa for Paraguay?
There is no official digital nomad visa for Paraguay, but digital nomads can apply for temporary residency in the country and stay for up to two years.
As a digital nomad, you can benefit from Paraguay temporary residency to live in the country and visit other Mercosur countries without a visa.
Can I apply for Permanent Residency in Paraguay after acquiring Temporary Residency?
Yes, you can apply for permanent residence in Paraguay two years after you have been a temporary resident. You do not need to reside in the country during this period. It is enough if you visit for three days after 12 months of having acquired your temporary residency, and you must show a local police background check to the Paraguay authorities.
Can all nationalities apply for Paraguay Residency?
Yes, most of them. It can be more complicated for nationals of countries that require a visa from their country before visiting Paraguay. It does not apply to citizens of Canada, the United Kingdom, New Zealand, Australia, Schengen Countries, Mexico, Colombia, and the United States because they can acquire visas on arrival in Paraguay.
Which countries require a tourist visa to enter Paraguay?
You can acquire a visa on arrival (VOA) in Paraguay, if you are from one of 81 countries, including Canada, the United Kingdom, New Zealand, Australia, Schengen Countries, Mexico, Colombia, and the United States. You can land in Paraguay only with your passport and apply for the visa once you arrive.
Citizens from Pakistan, India, Albania, Thailand, Vietnam, and others must request a visa from their country's embassy before traveling to Paraguay.
Can I extend my temporary residence in Paraguay?
Yes, you can. You need to show the proper documentation to the Paraguay authorities.
Read the complete list of documentation below.
You can extend it or apply for permanent residence after being a temporary resident for two years. Read more about it below.
Which documents do I need to extend my Paraguay Temporary Residency?
When you extend your temporary residence in Paraguay, you must show the following documents to the authorities. Remember that you need to translate and apostille them before applying:
- Valid passport or ID document
- Your Paraguay Temporary Residency Card
- Your Valid Paraguay Cédula (ID)
- Background Certificate, issued by the Identification Department of the National Police, from the age of fourteen
- Background Certificate for Foreigners, issued by the Computer Department of the National Police, from the age of fourteen
- Certificate of Judicial Background, from the age of fourteen
- Background Certificate issued by Interpol, from the age of fourteen
- Payment of the corresponding fee
If you are a citizen of the United States, you can get your documents apostilled remotely with the help of one of our verified experts.
Where should my criminal records be from if I am a digital nomad and have not had a residence in the past years?
Digital nomads may have the question of where their criminal records should be from as they are always on the move. No worries.
If you want to acquire Paraguay residency, the criminal records can be from your country of origin or where you have lived for the past three years. If you are going for the second option, you must have an ID that is three years old to prove you have been in that country for this time.
You can always apply with the document of your country of origin.
Which document is a criminal record if I am from the United States?
For citizens of the United States, the official criminal records document is the FBI background check.
You must apostille and translate the FBI background check to apply for Paraguay residency.
How long do I have to be in Paraguay to complete the residence process?
You must be in Paraguay for a short period of three days to complete the process with the authorities. After four months, you will be getting your residency, but you can get it sent via email by a verified expert.
When does my Paraguay residency become valid once I complete the process?
Four months after you apply (when you get your Paraguay ID called Cédula).
Paraguay Permanent Residency
Once you have been a Temporary Resident in Paraguay for two years, you can become a permanent resident and enjoy the tax and low-cost living benefits for the longer term.
In this section of the article, you can find more information about the process of becoming a permanent resident in Paraguay.
How do I get a Permanent Residency in Paraguay?
To acquire permanent residence in Paraguay, you must apply for temporary residency first. After two years, you can exchange it for permanent residence by making a deposit of $5000 which you can get back afterward or by applying with your university degree.
Can I apply for Paraguay Citizenship after acquiring Permanent Residence?
Yes. You can apply for Paraguay Citizenship after being a permanent resident for three years.
Note that the process for Paraguay Citizenship is more complicated than the Residence one. You have to live in the country for the whole three years, pass a knowledge test, and speak Spanish to acquire citizenship.
Is there dual citizenship in Paraguay?
You must check this with your country's authorities because it depends on your original country of citizenship and the bilateral agreements with it.
Did Paraguay Permanent Residency Law change in 2022?
Yes. In October 2022, the Paraguay Residency Law changed. It became easier to acquire as you must become a temporary resident first. The law had not been changed since 1997.
Does Paraguay offer social security or comprehensive health insurance for residents?
Yes. Paraguay offers social security for residents. However, you are not obliged to get and use it. As in any other country, you can opt for private options.
Can I live and work in Paraguay after I become a resident?
Yes. You can live and work in Paraguay after becoming a permanent resident.
Once you become a permanent resident, you have the same rights as any Paraguayan resident. The only difference is that you cannot vote or go on a public charge.
Can I get a Paraguay Tax ID if I am a temporary resident?
Yes. Once you become a temporary resident, you can get a Paraguay Tax ID to become a fiscal resident. The process is done with your Cedula (ID).
Paraguay Tax Residency
A guide: How to get Paraguay 0% Tax Residency Without Living There
As we previously mentioned, the Paraguay Tax Residency has popularized among digital nomads, remote entrepreneurs, investors, and global expats because of the country's 0% tax on foreign-sourced income policy*. Visadb and Natalia are the top providers of the service in the digital nomad and international community, thus, we have gathered this comprehensive from A to Z guide.
The next step is becoming a Paraguay tax resident or fiscal resident. You can find all the requirements, process steps, frequently asked questions, and more in the present section of the article.
How do you become a Tax Resident in Paraguay?
To become a tax resident or fiscal resident in Paraguay, you must acquire temporary residence and then get your Tax ID. There is no need for you to live 183 days in the country, but you must come once every three years to maintain your residence.
The process to become a tax resident in Paraguay is as follows:
- Becoming a temporary resident by following the immigration process, which takes three days and for which you need your birth certificate and criminal background check
- Register with the Tax Office by signing some documents and providing a copy of your Paraguay ID.
- Receive your Paraguay Tax Number or ID, which you can then show to prove your fiscal status.
What documents do I need to become a Tax Resident in Paraguay?
To become a tax resident in Paraguay, you must become a temporary resident first, for which you need the following documents from your country of origin:
- Birth certificate with apostille
- Marriage certificate with apostille (if you are married).
- Criminal record with apostille
Once you have gone through that process, you must show up at the tax office with a copy of your Paraguay Residency ID.
Is it easy to get fiscal residency in Paraguay?
You can become a Paraguay Tax Resident and legally start paying 0% tax on global income in a short time.
Does Paraguay Tax Foreign Income?
Paraguay does not tax foreign-sourced income. Other forms of income, such as capital gains, commissions, and interest, could be liable to taxation if you are in Paraguay.
Will I lose my current Paraguay Permanent Residency and Tax ID with the new law in 2022?
No. People who are already tax residents of Paraguay will maintain the status. The process only changed for the newcomers.
How much does it cost to get Paraguay Tax Residency?
The government fees to become a Paraguay tax resident, considering you must apply for temporary residency first, come to a total of 400 USD.
If you want to hire a verified expert to help you with your Paraguay Temporary and Tax Residency, Natalia offers a special package with visadb, which is $2600. If you do not want the tax ID, then it is $2100.
Do I need a local address in Paraguay to get Paraguay Tax Residency?
Yes. You need a local address in Paraguay to become a Paraguay tax resident.
Natalia, our verified expert, provides it in the special package for digital nomads.
What are my responsibilities as a Paraguay Tax Resident?
Once you become a Paraguay tax resident, you must present a monthly declaration for VAT even if you do not have any movements or bills. Keep a healthy fiscal residence everywhere. :)
Who can help me get Tax Residency in Paraguay?
A verified expert can help you acquire tax residency in Paraguay. They can help you ensure all the proper documentation is in order, pick you up from the hotel, and take you to the immigration and Tax ID offices.
Our verified expert, Natalia, provides you with an address in Paraguay included in the same price. Chat with her price.
Can I apply for Paraguay's Tax Residency remotely?
No. You must be in Paraguay for three days so the immigration office can take your biometrics.
What income is taxable in Paraguay?
If you do not bring money into the country, it is not taxable. To say, if you do not have any income in or from Paraguay. Even if you generate activities inside Paraguay for clients abroad, you must pay VAT.
Nonetheless, personal income tax in Paraguay is 8-10%, which is still a reduced quantity compared to other countries like Canada, the United Kingdom, and more.
Can I open a Wise account in Paraguay?
You can open a wise account from anywhere. Wise does not offer debit cards in Paraguay yet, though.
How long does it take to get a Paraguay Tax ID?
Once you are a temporary resident, a process that takes four months, you can get your tax ID in five days.
Do I need to live for 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.
Why is Paraguay so popular among digital nomads?
In one sentence, taxation in Paraguay is territorial, so digital nomads can acquire tax residence there and optimize their expenses. Not many countries have territorial taxes.
If you are making your money in the US, Europe, or Asia, you do not have to pay any taxes as a Paraguay Tax Resident if you do not live there.
Paraguay Country Guide
Nonetheless, Paraguay is more than its attractive tax system. Continue reading to find some great information about living in Paraguay.
See you there!
Why should digital nomads visit Paraguay?
Paraguay is an affordable remote work experience for digital nomads with diverse cities and natural escapes with a rich culture, leafy landscapes, and friendly locals.
What is the cost of living in Paraguay?
The cost of living in Paraguay starts at 443 USD per month, not including rent. Rent in Paraguay ranges from $242 to 675 USD per month, depending on location and accommodation type.
*The cost of living and rent is an approximation.
What is the official currency in Paraguay?
The official currency in Paraguay is the Paraguayan guaraní (PYG).
What are the best cities to visit in Paraguay as a digital nomad?
The best cities to visit in Paraguay as a digital nomad are Asunción, Ciudad del Este, Encarnación, San Bernardino, and Areguá.
Is Paraguay a stable country?
Yes. Paraguay is a stable country economically and politically.
Can I travel to South America as a Paraguayan Resident?
Yes. You can travel to all Mercosur countries, including Argentina, Uruguay, Brazil, Chile, Bolivia, Venezuela, and Peru.
How do I get money in Paraguay? Can I open a bank account online?
After you have your Paraguay ID, you can open a bank account, but not online. Once you are in Paraguay to become a resident, go to the bank with your ID and Tax ID.
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.
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