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

Paraguay has been attracting digital nomads, global entrepreneurs, and expats from around the world due to its highly attractive 0% foreign income tax system. In 2022, the Paraguayan authorities changed the law that describes the process of becoming a Permanent Resident, therefore affecting the procedure to get a Tax Residency in Paraguay.

You can find all you need to know about the Paraguay Tax Residency Law Changes made in 2022. For our most recent update on the Paraguay Tax Residency application, check our expert video session below:

Paraguay Tax Residency Law Change in 2022

How did the Paraguay Tax Residency Law change in 2022?

For many years, foreigners were able to obtain Paraguay Permanent Residency by either showing an apostilled and translated university degree or making a USD 5000 bank deposit in the country. In October 2022, four main things about this process changed:

1. You now do not need to show any university degree or make any bank deposit to obtain Paraguay's Temporary Residency.
2. You now need to first obtain TEMPORARY RESIDENCY by paying the proper government fee and providing a clean criminal record and a birth certificate.
3. After two years of being a temporary resident, you can apply for PERMANENT RESIDENCY IN PARAGUAY.
4. Once you are a Temporary or Permanent Resident of Paraguay, you can get your TAX ID with your ID.
5. To obtain a Permanent Residency, you need an active tax ID or university diploma.

Remember that you can also acquire a Permanent Residency with an investment.

Has the 0% Tax on Foreign-Sourced Income in Paraguay changed?

Even though the process to obtain a Permanent Residency was modified, which is the first step to getting a Tax Residency in Paraguay, the benefit of 0% tax on foreign-sourced income stays the same. You can still benefit from this program.

Current Paraguay Tax Residents

Will I lose my current Paraguay Permanent Residency and Tax ID with the new law?

No, if you are already a Permanent Residency with an ID (Cédula) and Tax ID, you have nothing to worry about.

How to become a Paraguay Tax Resident in 2025

Which documents do I need to apply for Paraguay Temporary Residency?

To apply for the Paraguay Temporary Residency, you need the following documents:

1. Valid passport or ID document.
2. If a consular visa is required, it will be verified by the Ministry of Foreign Affairs.
3. Proof of entry into the country.
4. Birth certificate.
5. Proof of marriage (if applicable).
6. 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.
7. Background certificate issued by Interpol, from the age of fourteen.
8. Background Certificate for Foreigners, issued by the Computer Department of the National Police, from fourteen years of age.
9. 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.
10. 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.
11. Payment of the fee of the corresponding subcategory.

You need to apostille and translate to Spanish all the required documents to apply.

Which documents do I need to extend my Paraguay Temporary Residency?

To extend your Paraguay Temporary Residency, you need the following documents. Remember that you need to translate and apostille them before applying:

1. Valid passport or ID document.
2. Paraguay Temporary Residency Card.
3. Valid Paraguay Cédula (ID)
4. Background Certificate, issued by the Identification Department of the National Police, from the age of fourteen.
5. Background Certificate for Foreigners, issued by the Computer Department of the National Police, from the age of fourteen.
6. Certificate of Judicial Background, from the age of fourteen.
7. Background Certificate issued by Interpol, from the age of fourteen.
8. Payment of the corresponding fee.

Help to get a Paraguay Tax Residency and application

Feel free to reach out to visadb.io, our verified Experts for Paraguay have more than 7 years of experience. You can read their reviews and process help below.

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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:

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

Paraguay Tax Residency Complete Guide 2025

Nomads in Paraguay in 2025: All You Need

How to become a Paraguay Tax Resident in 2025

5 Key Facts about Paraguay Tax Residency

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