Residence in Paraguay:
What are the closest to the International Freedom?
Take advantage of the Tax Laws Unique to Paraguay to Protect Your Equity, Maximize Your Profitability and Position yourself As a Pioneer in an Emerging Market.
0% tax offshore
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Joaquín ignacio de la vega j.
+12 years of experience in business
Real Estate development in Paraguay.
Strategic direction of the Business.
Digital Marketing and Funnels of Sale.
Import, Distribution and Marketing Electronics.
STUDIES
Commercial Engineer From The Universidad Adolfo Ibáñez Business School, Chile.
Master In Strategic Management Of The University Adolfo Ibañez Business School, Chile.
Managing The Global Firm, Wharthon Business School Pennsylvania Certified.
(Last seats available for "Consulting and Coaching 1 to 1.")
- Tax benefits for Foreign Investors
0% Tax on Foreign Income:
Law N° 125/1991 and Decree N° 6.560/2005 establish that Paraguay is only levied on income generated within the country. If you are an investor with income from other countries, you will be exempt from tax on such income.Bank Secrecy Protected:
According to the Law N° 489/95, Paraguay ensures the bank secrecy for all financial institutions, offering privacy and protection to international investors. Only by court order and in specific cases, information can be disclosed.Tax residency Simple and Fast:
Law N° 978/96 – Migration Law to obtain a residence without the need of large investments or long-term stays. Requirements are flexible, you can purchase your residence in a few months.Simplified process for the Temporary Residence and Permanent:
The Decree N° 21.421/98 establishes an efficient process to obtain temporary residency in Paraguay, which can become permanent after two years.Costs of immigration Procedures Accessible:
The Resolution N° 2.587/12 keeps fares low for all the immigration procedures, making it accessible to investors of different levels.Tax exemption for Foreign Assets: According to the Law N° 125/1991, Paraguay gravel heritage or the assets of the tax residents if these are out of the country. This makes Paraguay is an ideal place to safeguard and protect your property.
Easily to Get a RUC Active:
With only a RUC active, you can keep your residence without the need of a continuous physical presence in the country, which facilitates the management of your investments at a distance.
PARAGUAY:
- Tax on income generated abroad: 0%.
- Tax on income of physical persons: 10%.
- Capital gains tax: 10%.
- Corporate income tax: 10%.
- VAT: 10%.
- Gift tax: 0%
- Inheritance tax: 0%
- Wealth tax: 0%
- No departure tax
- No rules SEC
As mentioned above, Paraguay is a jurisdiction with taxation, territorial, and therefore, their fiscal residence absolve individuals of any tax on income that is not obtained WITHIN Paraguay.
It is important to note that this territorial advantage applies only to the personal incomessince companies are now in Paraguay there is no benefit from it.
Therefore, it is advisable to operate through companies and structures out of the country with tax residency in paraguay.
But its territorial tax system is not everything. Paraguay offers tax incentives are very competitive.
Therefore, with the tax residency in paraguay, depending on the source of their income, you could end up pay very few taxes or, very probably, NO TAX.
Requirements to be a Tax Resident in Paraguay
We understand that this residence is top-notch. But, is it difficult to obtain?
It is one of the easiest!
I'm going to go into great detail in this section because I want you to understand perfectly how to do it and why it is so beneficial.
In the first place, to become tax resident in Paraguay, obviously need to have a valid residence permit in the country.
The immigration policy of Paraguay is very open, and many nationalities (including european) can enter the country for the first time only with the passport.
Other countries may require a visa for this first entry.
After arriving in the country, you can proceed to apply for a temporary residence permit:
- It has a validity of 2 years, and in their past 3 months, allows you to apply for permanent residence.
- The requirements for obtaining it are so simple as to provide some documents (birth certificate, marriage certificate if applicable, and criminal history).
- There are other necessary links with the country, as have a property, open a business or utility bills.
Once you have obtained the temporary residence, you can apply for your identity card paraguayan known as the "identity Card".
This document is essential for their transactions, and their life in the country, as well as for opening a bank account.
With your Card, you can apply for your id: your tax id!
This is the Single Registry of Taxpayers" (RUC), which identifies you as a "taxpayer".
With it, you can enlist a business, bill, self-employed, pay taxes in Paraguay and... let you apply for your certificate of tax residence!
This document is especially useful if you are a nomad tax and you need to prove that it is not a tax resident in other jurisdictions with high taxes because it is now a contributor on their new residence.
The drawback is that Paraguay does not have many international tax treaties.
This does not invalidate the document within Paraguay, but its recognition by other countries can vary.
Therefore, it is important to seek advice to ensure that, in your case, the change of tax residence is safe.
How much time does it take to get the tax residency in Paraguay?
How much time does it take to get the tax residency in Paraguay?
This question has two different answers depending on how you perform the procedures for obtaining the residence.
As you have seen above, the process for obtaining it involves four stages: temporary residence, identity card, tax id and certificate of tax residence.
These procedures can take more than 7 months in Paraguay if you manage personally.
Instead, by hiring our services for management of residence, you will be able to obtain all the documents in a maximum period of 3 months.
In addition, you do not need to stay in Paraguay all the time; it may be present only for the paperwork and collection of documents that require their presence.
Finally, we want to inform you that, from a year ago, the identity card of paraguay is issued with chip, and residents should remove it personally.
It is for this reason that, while previously many services offered the possibility of performing the procedure of residence in a single trip of 2 days, this mode since it is not advisable, so we recommend avoiding this service.
How to keep the fiscal residence in Paraguay
At this point, you have already obtained your residence and tax residency in Paraguay, and wondering, now what?
Paraguay is not required to have any link with the country, or pass a certain number of days per year to maintain your residence. This makes it one of the residences prosecutors more flexible.
However
THERE ARE CERTAIN ASPECTS TO KEEP IN MIND
Paraguay can revoke your residence permit if you spend more than 3 years without a visit to the country.
If you want to change your temporary residence permit for a permanent one, you will need to visit Paraguay to the end of their second year of temporary residence.
If you need that Paraguay will issue a certificate of tax residence in a given year (for example, if you need to present it in another country), you must meet at least one of these two requirements:
- Have a RUC (tax identification number) is ACTIVE.
- Spend more than 120 days in the country this year-
Therefore, if your plan is to press rarely Paraguay, you must have your RUC asset to be entitled to a certificate of fiscal residence.
What does it mean to "active"?
Your RUC in Paraguay can be active or "frozen".
Being active means to submit monthly VAT returns (even if they are blank, because you have no business in Paraguay).
To be frozen will release you of any statement, but do not you get a certificate of tax residence unless you spend 4 months of the year in the country (which is the criterion of day to be tax resident in Paraguay).
It will depend on your profile:
- If you are planning to spend time in Paraguay, to develop a base there and enjoy the low cost of living, freeze the RUC would be a viable option.
- If you prefer to live outside of Paraguay, and is just being "in step", it is highly recommended to keep the RUC active.
Whatever your case, you can contact us as we offer a full range of services.
Permanent residence and citizenship in Paraguay
In the last 3 months of your temporary residence permit, you can travel the country to obtain their permanent residence permit.
This permission will have a validity of 10 years and, to keep you, only you will need to visit Paraguay to once every 3 years.
A remarkable aspect of the permanent residency is that, at the end of 3 years, allows you to request the paraguayan nationality.
Finally, it is possible to obtain permanent residence directly (without the 2-year temporary residence) through the program of temporary residence that we provide.
Live in Paraguay
Paraguay has a subtropical climate characterized by two main seasons: a warm and wet from October to march, and other fresh and dry from may to August.
In general, temperatures tend to be warmer, because the winters are not particularly cold (with an average of about 10°C), and summers can reach up to 40°C.
It's recommended to visit the country in spring or autumn, when the weather is more moderate, and can be avoided by extreme weather events such as droughts or floods (which are not uncommon in Paraguay).
This is without doubt one of the biggest attractions for the Nomads Tax.
Paraguay has a cost of living lower than that of the surrounding countries (20-25% lower).
Compared with Spain or destinations in Europe, Paraguay is up to 60-70% cheaper.
Currently, the minimum wage is around 350 euros per month, and its GDP per capita is twelve times lower than that of the united States.
It is possible to find apartments decent in Asunción (the capital) for 300 euros per month.
Paraguay is considered a relatively safe country compared to some of its neighbors in South america.
However, as the majority of the destinations in Latin America, its crime rate is clearly higher than that of the european countries.
Some factors that contribute to this high rate of crime is drug trafficking, a weak judicial system and police forces little prepared.
In Paraguay there are public systems of health and education, but their counterparts private offer services significantly better.
The political landscape is predominantly right-wing, and the current Government considers it important that the country is attractive to entrepreneurs and investors.
The official currency is the paraguayan guarani (PYG), but the use of the american dollar is very common.
Paraguayans are known for their hospitality and joy. The official language is Spanish, and his mastery of the English is improving, above the average of other countries.
English 
Spanish