What is tax residency in Paraguay?

Tax residency in Paraguay refers to the status of an individual or legal entity that is subject to taxation in the country based on their income, assets, and economic activities.

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How do I become a tax resident in Paraguay?

To become a tax resident in Paraguay, you must either have a temporary/permanent residence in the country or spend at least 120 days within a 12-month period in Paraguay.

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What is tax residency in Paraguay?

Tax residency in Paraguay refers to the status of an individual or legal entity that is subject to taxation in the country based on their income, assets, and economic activities.

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How do I become a tax resident in Paraguay?

To become a tax resident in Paraguay, you must either have a temporary/permanent residence in the country or spend at least 120 days within a 12-month period in Paraguay.

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What is temporary residency in Paraguay?

Temporary residency in Paraguay is a legal status granted to foreigners who wish to reside in the country for a specific period without becoming permanent residents.

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How do I apply for temporary residency in Paraguay?

To apply for temporary residency, you must submit a temporary residency application to the Dirección General de Migraciones (DGM) along with the required documentation.

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What are the requirements for temporary residency in Paraguay?

Requirements for temporary residency include a valid passport, proof of financial solvency, a criminal background check, a birth certificate, a medical certificate, and other documents depending on the residency category.

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How long does temporary residency last in Paraguay?

Temporary residency in Paraguay is usually granted for one year and can be renewed annually for up to three years.

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Can I work in Paraguay with a temporary residency?

Yes, you can work in Paraguay with temporary residency, provided you obtain the necessary permits and meet the requirements of your residency category.

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What is the cost of living in Paraguay?

Paraguay's living cost is relatively low compared to other countries in the region. Expenses vary depending on your lifestyle and location, but overall, you can expect lower costs for housing, transportation, and food.

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600 USD decent loft to 1,200 USD fancy loft/1 bedroom.

Meat (highest quality and 5 USD/kg)

Eating out at a fine dining restaurant (15-20 USD per person)

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Does Paraguay residency (temporary or permanent) allow me access to the rest of Mercosur countries without a visa, similar to the EU residence permit and Schengen area?

Not with residency, yes with passport.

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What is the official currency of Paraguay?

The official currency of Paraguay is the Paraguayan Guarani (PYG).

You can also withdraw USD at the ATM, but are not widely accepted in the day to day.

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Is Paraguay a safe country to live in?

Paraguay is considered relatively safe for expats, but it's essential to take standard safety precautions, such as avoiding certain areas at night and being cautious with personal belongings.

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What is the healthcare system like in Paraguay?

Paraguay has a public healthcare system that provides basic medical services to residents. However, expats often prefer private healthcare facilities due to higher quality and efficiency.

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Can I drive in Paraguay with my foreign driver's license?

Yes, you can drive in Paraguay with your foreign driver's license for up to 90 days. After that, you need to obtain a Paraguayan driver's license.

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Is it easy to find accommodation in Paraguay?

Finding accommodation in Paraguay is relatively easy, particularly in urban areas. You can choose from a variety of options, such as apartments, houses, or gated communities.

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Can I open a bank account in Paraguay as a temporary resident?

Yes, temporary residents can open a bank account in Paraguay by providing the necessary documents, including their residency card, passport, and proof of address.

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What is the income tax rate in Paraguay?

The income tax rate in Paraguay is a flat 10% for residents, while non-residents are subject to a 12.5% withholding tax on Paraguayan-sourced income.

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Are there any tax benefits for foreign residents in Paraguay?

Paraguay offers a territorial tax system, meaning foreign residents are only taxed on income derived from Paraguayan sources.

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What is the sales tax rate in Paraguay?

The sales tax rate in Paraguay, known as the Value Added Tax (VAT), is 10% on most goods and services. Some essential items have a reduced rate of 5%.

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How do I file my taxes in Paraguay?

Residents must file their taxes annually with the Paraguayan Tax Administration (SET) using an online system. Non-residents with Paraguayan-sourced income must also file and pay taxes.

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Can I bring my pet to Paraguay?

Yes, you can bring your pet to Paraguay, provided you comply with the import requirements, such as having a health certificate and proof of vaccinations.

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What is the education system like in Paraguay?

The education system in Paraguay consists of public and private schools, offering pre-primary, primary, and secondary education. There are also international schools available for expat families.

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What languages are spoken in Paraguay?

The official languages of Paraguay are Spanish and Guarani. Spanish is the primary language for business and government, while Guarani is spoken by a large portion of the population.

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What is the climate like in Paraguay?

Paraguay has a subtropical climate with hot and humid summers and mild winters. The country experiences heavy rainfall during the summer months.

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Can I buy property in Paraguay as a foreigner?

Yes, foreigners can buy property in Paraguay without restrictions. However, it's crucial to work with a reputable lawyer and real estate agent to ensure a smooth process.

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What does a modern furnished apartment in a high rise typically rent for?

1,500 USD via Airbnb (1-2 rooms). You can negotiate 1,000-1,200 USD direct deal.

Under $1,000 for a loft.

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Is there a social security system in Paraguay?

Paraguay has a social security system that provides benefits such as healthcare, pensions, and unemployment insurance for eligible residents. Both employers and employees contribute to the system.

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What is the process for obtaining permanent residency in Paraguay?

To obtain permanent residency, you must first hold temporary residency for at least two years and meet the necessary requirements, such as having a clean criminal record and proving financial solvency.

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Can I retire in Paraguay?

Yes, Paraguay offers a retirement visa for foreign nationals who can prove a stable monthly income from pensions, investments, or other sources.

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What is the minimum wage in Paraguay?

The minimum wage in Paraguay is subject to change, but as of 2021, it was approximately 2,192,839 PYG per month (around 320 USD).

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Are there any special visa categories for investors or entrepreneurs in Paraguay?

Paraguay offers an investor visa for foreign nationals who invest a minimum amount in Paraguayan businesses or real estate. The required investment amount varies depending on the type of project.

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What is the process for obtaining Paraguayan citizenship?

To obtain Paraguayan citizenship, you must have legal residency for at least three years, demonstrate good moral character, and have a basic knowledge of the Spanish language and Paraguayan history. You also need to renounce your previous nationality (in theory), which is never enforced in practice (we know multiple Paraguayan citizens (born and not born in PY) holding multiple citizenships.

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Can I gain citizenship without residing in the country or is that fake?

You must have created ties with the country during the 3 years of Permanent Residency (requirement to apply for citizenship by naturalization).

You must visit the country and complete certain steps in person to obtain the passport as well (during the application).

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Do I need vaccinations to travel to Paraguay?

Yellow fever is mandatory 15 days before arrival (unless you get lucky at the airport and they don’t ask you to prove it). Other vaccines can be recommended particularly if travelers plan to visit rural areas. Other recommended vaccines include Hepatitis A, Typhoid, and routine vaccinations like MMR and Tetanus.

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MORE INFO

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# **Obtaining Ideal Residence in Paraguay with Miquel Girones Co.**

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**The Basics**

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- Assistance in obtaining Paraguayan residency for nomads, emigrants, or for contingency planning

- Local assistance through our partner who has been living in Paraguay for years

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## **Why Choose Paraguay for Residency?**

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1. **Fast immigration process** 

   - Only 3 business days in Asunción, versus 3-6 months wait time in Uruguay

   - Documents are mailed to your desired address 

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2. **Simple process**

   - Portuguese original documents don't require a sworn translation

   - Only a criminal background certificate is required

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3. **Low cost**

   - Residency costs are $2-3 thousand less than in Portugal and $6-7 thousand less than in Panama

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4. **No stay requirements**

   - Once temporary residency is obtained, you can travel anywhere without maintaining local property

   - Just return to Paraguay shortly before 2 years to convert temporary residency to permanent

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5. **Anonymity**

   - The Paraguayan ID card allows for opening international bank accounts 

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6. **Tax Freedom**

   - Income from abroad is completely tax-free in Paraguay

   - Only local income is taxed up to 10%

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7. **Economic Freedom**

   - Paraguay ranks 76th place in the economic freedom index

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8. **Financial Stability**

   - One of the least indebted countries in the Americas

   - 37.7% debt to GDP ratio compared to 128% in the US and 93% in Brazil

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9. **Proximity**

   - Neighboring Brazil with direct flights and bus lines, a strong Brazilian community and a welcoming population

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## **Our Services for Obtaining Residency**

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- Simplified process with minimal document requirements

- Assist in applying for required documents for an additional $100 USD

- Paperwork completion typically within 3 days in Paraguay

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**Documents Required**

- Apostilled Birth or Marriage Certificate

- Criminal Background Certificate (no more than 90 days old)

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**Costs**

- Total cost of temporary residency is $1499 USD

- $300 USD discount offered for those who take an internationalization consultation

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**Note:** The process can be performed in Ciudad del Este for an additional $400 USD.

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## **What's Included in the Residency Service?**

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1. Temporary Residency and ID Card

2. Remote assistance with information about the process

3. A professional to pick you up at the bus station or airport in Asunción

4. A professional to guide you through the residency process at immigration and for the removal of the ID card

5. A 3 business day turnaround for the process per visit

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## **What's Not Included in the Residency Service?**

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1. Any travel-related costs to Paraguay

2. Any lodging costs in Asunción

3. Apostilled Brazilian certificates for the process. Available for an additional cost of $100 USD

4. Expedition of the process: $250 USD each for the ID card or temporary residence to accelerate the process from 2-3 months to 15 business days

5. Permanent Residence. Available for an additional cost of $1499 USD ($1199 USD for consultancy clients)

6. Driver's License and Tax Identification Number (RUC). Available for an additional cost of $250 USD each once the ID card is obtained

7. Tax and accounting support in Paraguay. We can refer accountants in the country for any needs

8. Process in Ciudad del Este: Additional $400 USD charged as our professionals are located in Asunción

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## **Frequently Asked Questions (FAQs)**

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**Why

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 work with Miquel Girones Co.?**

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- Paraguay has low bureaucratic efficiency and high corruption

- Residency can be difficult and time-consuming to obtain independently 

- We offer competitive prices, compared to other immigration companies that charge between $4,000 and $5,000

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## **Why Choose Miquel Girones Co.?**

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We understand the budget constraints of our Brazilian clients, and we strive to charge a fair price, significantly below the market average. Our internal contacts help ensure a speedy and successful application process.

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## **Do I need to travel to Paraguay for my immigration process?**

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Yes, you will need to visit Asunción twice during the immigration process; once for temporary residence and again for the ID card. The process typically takes only 1-3 business days and can often be completed in a single day. Although our team is based in Asunción, we can also facilitate the process in Ciudad del Este for an additional $400 USD. 

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Please remember that a yellow fever vaccine is required to enter Paraguay and should be administered at least 15 days before travel.

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## **How long does the process take?**

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We need a minimum of 1 week's notice from when you place the order to your travel date to Asunción. This allows us time to request necessary documents and schedule your immigration appointment. Once you arrive in Asunción, the application process should be completed within 1-3 business days. The temporary residence is then ready in about 3 months. After obtaining temporary residence, you can apply for the ID card, which takes another 2 months to process. If you wish to expedite the process, we offer a 15-day acceleration for an additional $250 USD per document.

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## **Do I need to live in Paraguay once I have residency?**

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No. Once you have temporary residency, you are only required to return to Paraguay once, between 1 year and 7 months after receiving temporary residence, to convert it into a permanent residency. After obtaining permanent residence, you are virtually free from any requirement to return to the country.

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## **Benefits of Residency in Paraguay while Living in Brazil**

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- Starts the clock towards permanent residence and future citizenship by naturalization in Paraguay.

- Facilitates the opening of accounts in Paraguayan banks and cooperatives.

- Eases investing, studying, and doing business in Paraguay.

- Enables the obtaining of a Paraguayan tax identification number for opening accounts in international banks, brokers, and exchanges. This results in increased financial privacy as Paraguay does not exchange banking information with other countries (non-signatory of the CRS). It also allows you to access financial platforms that restrict the use of their platforms for residents in Brazil.

- Allows the obtaining of a Paraguayan driver's license to drive in other countries.

- If you decide to move to Paraguay at any point, you will have all the necessary documents in hand.

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## **Can I live tax-free with Paraguayan residency without living in Paraguay?**

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It depends on your specific circumstances. If you obtain Paraguayan residency, exit Brazil or your home country permanently, and then become a perpetual traveler or emigrate to a tax haven, it is fully possible to live without taxes without having to reside in Paraguay.

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## **Will I be Double-Taxed if I obtain Paraguayan residency while living in Brazil?**

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No. You only become a tax resident of Paraguay if you stay there more than 120 days a year. As a territorial taxation country, Paraguay does not tax income from abroad. As long as you don't have any Paraguayan source income, you don't have to pay taxes in Paraguay.

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## **Do I need to file income tax returns in Paraguay if I don't have local income?**

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If you only have residency, ID, and RUC in Paraguay, and do not generate local income, there is no requirement to file tax returns. However, if you are providing services as a self-employed professional abroad, you

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 will need to inform the Paraguayan bank about the origin of the money and make a monthly VAT declaration.

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## **Does residency help me get a second citizenship in Paraguay?**

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Yes. Once you have spent 3 years in permanent residency, you can apply for Paraguayan citizenship and obtain a Paraguayan passport.

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## **Getting a Residence for your Plan B is now Simple**

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The low cost and almost non-existent requirements make Paraguayan residency a viable option for anyone. Whether you want to move to Paraguay, become a nomad, or just have a Plan B residency, Paraguay is an ideal destination. If you are interested, place your order via Card, Paypal, or contact us for a 5% discount by paying via dollar remittance, BTC, ETH, or USDC. We also offer a $300 discount for a combined consultation + residence package. If you want to consider an offshore account option to complement your residency, we recommend checking out our Panamanian bank account offer. If you have any questions or want to set up a plan for your specific situation, you can schedule a consultation at Miquel Girones Co. here.

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