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Residency

Paraguay Residency

Two ways in: temporary residency with no investment, upgraded to permanent later, or permanent residency straight away through the Investor Pass. A territorial tax system and a low cost of living, handled end to end by our local team.

Minimum
None, or from US$70,000
Timeline
Approx. 3 to 9 months to approval
Outcome
Temporary first, or permanent straight away as an investor
Presence
Genuine ties expected
Family
Spouse and children
The highlights

Why Paraguay

Tax

A territorial tax system

Paraguay only taxes income earned inside Paraguay. Money you earn abroad, from a business, investments or remote work, is generally not taxed in Paraguay at all.

Income earned in Paraguay is taxed at some of the lowest rates in the region.

Full tax breakdown
0%Tax on income from abroad
8% to 10%Personal income tax
10%Company tax
10%VAT

Low cost of living

Housing, food, help at home and everyday services cost a fraction of what they do in North America, Europe or Australia.

Far from the world’s conflicts

Landlocked in the heart of South America, Paraguay sits far from today’s geopolitical flashpoints.

Safe and welcoming

A calm, family oriented culture that is open to foreigners, and safer than much of Latin America.

Energy, food and water

Nearly all its electricity is clean hydropower from the Itaipú and Yacyretá dams, it is a major exporter of beef and soy, and it sits on the Guaraní Aquifer, one of the largest freshwater reserves on earth.

A clear path to a passport

Start with temporary residency and no investment, or go straight to permanent residency as an investor. Citizenship is possible after three years as a permanent resident.

A country on the rise

Steady growth, low public debt and an investment grade credit rating since 2024 make it one of the most stable economies in the region.

Who does this program suit?

Suits you if

  • You want a very low tax base: potentially 0% on income from abroad, and a maximum of 10% on income earned in Paraguay.
  • You want a second residency without a large investment.
  • You are willing to build genuine ties, which a real tax residency requires.
  • You want a path that can lead to citizenship over time.
  • You want a base far from the world’s conflicts.
  • You want a low cost of living.
  • You want to be in a country on the rise.

Less suited if

  • You need a passport quickly. Citizenship comes only after years of permanent residency.
  • You cannot spend time in Paraguay. Absences of more than a year during temporary residency can cancel it.
  • You expect a tax outcome without changing where you actually live.
  • You would not be comfortable in a developing country, where infrastructure and services may not match what you are used to.
At a glance

Pathways to residency and a passport

Temporary residency

Your first status, valid for up to two years. You can live and work in Paraguay, get your cédula (national ID) and open bank accounts. It needs no investment, but you must upgrade it before it expires, and an absence of more than a year can cancel it.

Permanent residency

The long term status. You can live and work in Paraguay indefinitely, with far looser presence rules, and the years you hold it count toward citizenship, which you can apply for after three years.

The key difference

Temporary residency is the way in and has to be upgraded. Permanent residency is the one you keep, and the one that leads to a passport. These timings reflect the current rules, and the temporary period could be lengthened in future, so for anyone who wants to secure permanent residency now, we recommend going straight to it through the Investor Pass.

FilingYear 1Year 2Year 3Year 4Year 5
Temporary residencyNone
Approval6 to 9 months
Temporary residency2 years
Permanent residency3 years
Citizenship application
Visit to apply
Visit at least once every 12 months
Visit at least once every 3 years
Time until you can apply for citizenship: Approx. 5.5 to 6 years
  1. Approval6 to 9 monthsVisit to apply
  2. Temporary residency2 yearsVisit at least once every 12 months
  3. Permanent residency3 yearsVisit at least once every 3 years
  4. Citizenship application

Time until you can apply for citizenship: Approx. 5.5 to 6 years

Investor Pass, business or tourismUS$70,000 business; US$150,000 tourism
Permanent residency3 years
Citizenship application
Visit to apply, then at least once every 3 years
Time until you can apply for citizenship: Approx. 3 years and 3 months
  1. ApprovalApprox. 3 monthsVisit to apply
  2. Permanent residency3 yearsVisit at least once every 3 years
  3. Citizenship application

Time until you can apply for citizenship: Approx. 3 years and 3 months

Investor Pass, property or financialUS$200,000
Permanent residency3 years
Citizenship application
Visit to apply, then at least once every 3 years
Time until you can apply for citizenship: Approx. 3 years and 3 months
  1. ApprovalApprox. 3 monthsVisit to apply
  2. Permanent residency3 yearsVisit at least once every 3 years
  3. Citizenship application

Time until you can apply for citizenship: Approx. 3 years and 3 months

PathwayMinimum investmentApprovalWhat you getTime to passport eligibilityPresence
Temporary residencyNone6 to 9 monthsTemporary residency, 2 yearsApprox. 5.5 to 6 yearsVisit to apply; no absence over 1 year
Investor Pass, business or tourismUS$70,000 business; US$150,000 tourismApprox. 3 monthsPermanent residencyApprox. 3 years and 3 monthsOne visit every 3 years; more for citizenship
Investor Pass, property or financialUS$200,000Approx. 3 monthsPermanent residencyApprox. 3 years and 3 monthsOne visit every 3 years; more for citizenship

The line under each pathway runs from filing until you can apply for citizenship.

Ways to qualify

Investment options

Each option below qualifies on its own. We help you pick the one that suits your money and your plans.

Temporary residencyNo investment

Standard temporary residency

Up to two years. No investment, deposit or income proof at this stage. You build the activity that will support your permanent application.

Investor PassUS$70,000

Productive business

Direct permanent residency with a business plan and at least five formal jobs.

Investor PassUS$150,000

Tourism project

Direct permanent residency with a business plan and half yearly progress reports.

Investor PassUS$200,000

Real estate or financial instruments

Direct permanent residency. The property must be an investment, not a home for you or your family, and financial instruments must be held for at least two years with a yearly report.

Buying property to qualify? We check the title, debts, permits and valuation before you sign, so the property is clean and actually counts for the program.
Real estate due diligence
What it costs

Costs beyond the minimum

Government fees in Paraguay are modest. Starting with temporary residency usually costs less, because the application needs fewer documents. Going straight to permanent residency through the Investor Pass means preparing extra documentation up front, such as proof of the investment and, for some routes, a business plan. Every situation is different and the documents required vary from person to person, so we quote one fixed fee in writing after a free call.

Before you apply

Requirements

Who can apply

  • Any nationality and any age: children, even babies, can apply alongside their parents.
  • A clean criminal record in your country of nationality and anywhere you have lived recently.
  • Temporary route: no investment, deposit or proof of income needed.
  • Investor Pass: a qualifying investment from US$70,000 in a business, US$150,000 in tourism or US$200,000 in real estate or financial instruments.
  • Upgrading to permanent later: proof of lawful means of support, under Resolution 407 of 2026.

Documents checklist

  1. Valid passport
  2. Birth certificate, apostilled and translated into Spanish
  3. Marriage certificate, if your spouse is applying
  4. Police clearance from your country of nationality and recent countries of residence, apostilled
  5. Interpol check and local police certificate (we arrange these in Paraguay)
  6. Health certificate (issued in Paraguay)
  7. Investor Pass: proof of the investment and, for business and tourism, a business plan

We assist you in obtaining each document, then have it apostilled (certified with an international stamp so it is valid abroad), translated and filed for you.

Family inclusion

A spouse and children can obtain residency alongside the main applicant. Each family member has their own file, and we prepare them together.

SpouseChildren
Tax at a glance

Taxes in Paraguay

The headline rates for people who are tax residents there. Holding a residency or passport does not by itself make you a tax resident, and your current country may still tax you, so the licensed tax advisers in our local team confirm your position.

How residents are taxedTerritorialOnly income earned in Paraguay is taxed.
Personal income tax8% to 10%On income from personal services earned in Paraguay.
Income from abroadNot taxedForeign salaries, dividends, interest and gains fall outside the system.
Company tax10%On business profits.
VAT (sales tax)10%5% on basic food, medicines, home rentals and property sales.
Capital gains8%Only on gains from Paraguayan assets.
Dividends8%On dividends from Paraguayan companies.
Inheritance and giftsNoneNo inheritance or gift tax.
Wealth taxNone
Property tax (yearly)1%Of the official land value, which is usually well below market value.
See how this compares to other countries
How it works

From first call to approval

  1. 01

    Plan and documents

    We confirm the right route, then assist you in obtaining the relevant documents and having them apostilled and translated.

  2. 02

    Arrival in Paraguay

    Our local team meets you, takes you through the local certificates and files the application with the National Directorate of Migration.

  3. 03

    Residency and identity card

    Your residency is granted: temporary, or permanent straight away through the Investor Pass. We then handle your cédula, the Paraguayan identity card, and the practical steps that follow.

  4. 04

    Upgrade to permanent

    On the temporary route, we prepare your permanent application near the end of the two years, with the proof of support it now requires. Investor Pass clients are already permanent.

After approval

Settling in, handled by the same team

Our local team stays with you once you are approved and takes care of the practical steps, then keeps everything current and compliant.

Cédula (Paraguayan ID card)RUC (tax number)Driver’s licenceFarm and land registrationsYearly tax filingsFirearms licence, where you qualify
Settling in
FAQ

Questions about Paraguay

What is the difference between temporary and permanent residency?

Temporary residency is your first status, valid for up to two years. You can live and work in Paraguay, get your cédula and open bank accounts, but it must be upgraded before it expires, and an absence of more than a year can cancel it. Permanent residency is the long term status: you can live and work in Paraguay indefinitely, the presence rules are far looser, and the years you hold it count toward citizenship. On the temporary route you start temporary and upgrade later; investors go straight to permanent.

What is the benefit of going straight to permanent residency?

The rules can change, and the path from temporary to permanent residency has already become harder. Since 2026, upgrading requires genuine ties to Paraguay, such as a declared activity and tax filings that support it; simply turning up is no longer enough. The temporary period could also be made longer than two years in future. Going straight to permanent through the Investor Pass also shortens the road to citizenship to a little over three years, compared with about six on the temporary route. These timings are approximate. If you already plan to build genuine ties with Paraguay and have the funds, we recommend going direct to permanent while the door is open.

Why do investors get approved in approx. 3 months instead of 6 to 9 months?

Investors receive an investor certificate from SUACE, the government office that handles foreign investment, and that certificate requires the migration authority to fast track the application. So the Investor Pass is not only direct to permanent residency, it is usually much faster as well.

Is Paraguay a good Plan B?

It is one of the best Plan B options available. The bar to entry is low: temporary residency needs no investment, so the main costs are modest government fees and our fixed fee, far less than most programs. You only need to visit once every 12 months while temporary, then once every 3 years as a permanent resident, and the ongoing obligations are light. If you ever decide to leave your home country, you are already established somewhere, with residency, a Paraguayan ID card and a bank account ready to use. A home away from home that costs little to set up or to keep.

Is Paraguay good from a tax residency perspective?

Yes. Paraguay taxes only income earned inside the country, at a maximum of 10%, and it sets no minimum number of days to become a tax resident, so even a short visit each year can be enough. The harder part is ceasing to be a tax resident of your home country, which usually means building genuine ties to Paraguay and spending real time there. It is complicated and depends on your nationality and circumstances, so book a free call and we can talk through yours.

Is Paraguay a good place for company structuring and banking?

Not as the home for your companies and banking. Paraguayan banking is underdeveloped for international business, so while you hold residency in Paraguay, we usually set up your company and banking elsewhere, such as a US LLC, a UK company or an Estonian company, depending on your situation.

Is Paraguay good for entrepreneurs who are just starting out?

Yes, it is one of the best fits. Residency costs little, taxes are very low, and there is no minimum stay to become a tax resident: in principle, one visit a year can be enough. Whether your home country accepts that you have left is more complicated and depends on where you are from, so we look at that with you on a free call.

Do I need to live in Paraguay?

No. You need to visit to apply. During temporary residency, visit at least once every 12 months, because an absence of more than a year can cancel it. Once you are a permanent resident, you only need to visit once every 3 years.

When can I apply for citizenship?

After three years of permanent residency, subject to the requirements in force at the time, including a demonstrated connection to the country.

Do I need to speak Spanish?

No. Our team handles everything for you, including all translations, and our local team in Paraguay speaks English. They take you to the relevant government offices and explain each step as you go. Day to day, though, English is not widely spoken in Paraguay, so if you plan to live there long term we recommend learning some Spanish. It is one of the easiest languages for native English speakers, and there are plenty of apps and courses to help. Many expats live there happily without speaking Spanish, and there is a large expat community, so it is a recommendation rather than a requirement.

Did the US$5,000 deposit route go away?

Yes. The deposit route that led straight to permanent residency ended in October 2022, when Paraguay’s new migration law, Law 6984/2022, replaced the old one. Today the standard temporary route and the Investor Pass take its place.

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Next step

Find out if you qualify

Tell us a little about yourself and we will review whether Paraguay Residency suits you, what it would cost in total and how long it would take. No cost and no obligation.

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