Recently, I had the opportunity to sit down for lunch with the President of Paraguay, Santiago Peña. This was not a staged event or a large conference gathering; it was a private meeting with only a handful of attendees, held at a historic venue in Panama City. Thanks to a well-connected friend, it came together quickly, and I didn’t hesitate to accept the invitation.
As someone who has spent more than two decades working in the offshore space, guiding clients through second residencies, territorial tax systems, and global investment strategies, I recognize when a country quietly positions itself for long-term relevance. Paraguay is doing exactly that.
In a world where so many jurisdictions are sliding into overregulation and financial repression, Paraguay is heading in the opposite direction: toward openness, simplicity, and sovereignty. This is not just theory, it’s policy in action, driven by a government that understands the power of private enterprise and individual freedom.
In this article, I’ll explain why Peña’s leadership is transforming Paraguay into one of the most compelling jurisdictions for expats and investors. You’ll get a deeper look at his background and political philosophy, the pro-market reforms his administration is advancing, and the strategic advantages Paraguay now offers for those pursuing offshore diversification and long-term sovereignty.
Born in Asunción on November 16, 1978, Santiago Peña is no political lightweight. Elected on April 30, 2023 and taking office in August of the same year, at 44 years old, Peña became the youngest president in Paraguay’s modern democratic era. But don’t let his age fool you. He’s got the credentials of a seasoned technocrat and the clarity of a disciplined reformer.
Peña holds degrees from Universidad Católica Nuestra Señora de la Asunción and Columbia University’s School of International and Public Affairs. He’s worked as an economist at the Central Bank of Paraguay, served as Minister of Finance under President Horacio Cartes, and sat on leadership boards at both the Central Bank and Banco Amambay.
He’s also worked in academia, teaching economics and publishing research on monetary policy and finance. In short, this is a guy who doesn’t just talk about markets; he understands them.
Politically, Peña made headlines in 2016 when he shifted from the Authentic Radical Liberal Party to the dominant Colorado Party. He lost the presidential primary in 2018 but came back strong in 2023, winning the presidency with nearly 44% of the vote.
Peña isn’t just another Latin American politician making noise on TV. His governance style is focused, measured, and unapologetically pro-market. He’s promised 500,000 new jobs, ruled out tax hikes, and made it clear that foreign direct investment is welcome in Paraguay. Unlike many of his regional counterparts, he’s not trying to reinvent society; he’s trying to make it functional.
His foreign policy is pragmatic and principled. He supports Taiwan over China, moved Paraguay’s embassy in Israel to Jerusalem, and has taken a firm stance against authoritarian regimes like Venezuela. This is a leader who understands sovereignty and isn’t afraid to act accordingly.
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Under the leadership of President Santiago Peña, Paraguay has emerged as a model of macroeconomic stability, institutional reform, and an increasingly attractive environment for foreign investors and expats. His administration blends a commitment to good governance with openness to the world, positioning the country strategically within South America.
Peña has strengthened key geopolitical alliances, including with Taiwan, where discussions are underway to establish a regional artificial intelligence centre, and with Israel, by reopening Paraguay’s embassy in Jerusalem in 2024. These moves signal alignment with technologically advanced, pro-Western nations. Within South America, Peña champions deeper integration within Mercosur, firmly opposing unilateral agreements outside the bloc. He has maintained cooperative ties with Argentina, particularly around the Paraná-Paraguay waterway and the Yacyretá hydroelectric plant, while navigating more complex diplomatic challenges with Brazil, especially over Itaipú—and with Venezuela, where he recognized the opposition as legitimate, severing ties with the Maduro regime.
At the same time, Peña has promoted Paraguay on the international stage as an ideal destination for foreign capital, highlighting its fiscal stability, low inflation, competitive exchange rate, and legal predictability. The unification of tax and customs authorities has simplified administration and enhanced enforcement, while institutional measures like the creation of the National Anti-Corruption Council have signalled a clear break from the country’s more opaque past. Strategic infrastructure projects, such as the Heroes of the Chaco Bridge and the new Valenzuela 500 kV substation, have further reinforced Paraguay’s logistical and energy capabilities, critical for regional trade and business operations.
These structural improvements are mirrored in the country’s welcoming policies for foreign residents. Paraguay offers a straightforward residency program with no required investment and no need to prove income. Applicants need only provide basic documentation, such as a valid passport and apostilled certificates, to obtain a temporary two-year residency, which can easily be converted into permanent status. This low-barrier path to legal residency has made Paraguay increasingly popular among expats, digital nomads, retirees, and international entrepreneurs seeking a safe, affordable, and business-friendly home base.
Another appealing characteristic is Paraguay’s territorial tax system. It means that only income generated within the country is subject to taxation, while all foreign-earned income remains exempt. This has positioned Paraguay as a strategic hub for international wealth preservation, tax reduction, and long-term financial planning. Coupled with its low cost of living, improving infrastructure, and pro-market government, Paraguay offers expats and investors a powerful combination of stability, opportunity, and freedom.
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Paraguay is fast becoming a top Plan-B destination. With real opportunities, open policies, and rising interest, now is the time to act, before the window starts to close
Peña’s administration is quietly and rapidly turning Paraguay into one of the most compelling Plan-B destinations in Latin America. It's not just me saying this. Everyone in our world is watching Paraguay very closely: many of my Private Clients are interested and even getting their residency in the country.
We’re not just theorizing, we’re on the ground. Our investment tours are bringing real people to explore real opportunities, and the momentum is building fast. The country is wide open for those who act early, and I can tell you from first-hand experience: there’s real substance behind the optimism.
This isn't just about politics. It's about opportunity, access, and aligning yourself with a government that genuinely welcomes productive individuals and capital. And that’s rare in today’s world.