Options For Residency In Paraguay

Paraguay is a country of 157,065 square miles (406,752 km²) and is strategically located on the border of Brazil, Bolivia, and Argentina, where you can also find the capital Asunción. Because it is a landlocked nation, travel to nearby countries is very accessible, either by land or by air.

Paraguay has warm temperatures all year round, with mild winters and warm to hot summers. Overall the climate is quite temperate. The cost of living in Paraguay is quite reasonable, and is widely considered a safe country with low crime levels.

Paraguay also has an excellent selection of nature activities, such as hiking trails, waterfalls, mountain biking paths, sport fishing, eco reserves, and more. Paraguay has 18 million hectares of tropical forest.

The process of obtaining a residence permit in Paraguay involves specific procedures and documentation

RESIDENCY IN PARAGUAY

The government of Paraguay recognizes many different types of residency in their country, each with various obligations and entitlements on the part of the applicant.

Specifically, the type of residency visas you can apply for are:

• Precarious Settlement;

• Temporary Residence;

• Permanent Filing;

• Permanent Filing for Children and Spouses of Paraguayans;

• Permanent Filing for Foreign Investors.

There are also a couple more options specifically for South American applicants. Let’s break down these various categories.

Related content: The Basics Of How To Get A Second Passport Or A Second Residency

Paraguay offers several options for individuals seeking residency in the country

PRECARIOUS SETTLEMENT

This residency visa grants you up to six months of stay in Paraguay, and you can extend it one time for a total of one year of residency. The requirements for this visa are:

• Stamped passport demonstrating your legal entry into Paraguay;

• INTERPOL background certificate. You can get this in Paraguay as their police service has an INTERPOL department;

• Valid Certificate of Life and Residence, issued by Paraguayan police.

There is also a roughly $100 USD cost to file, although you must pay in Paraguayan Guarani, the local currency. The cost in Guarani is over 700.000 PYG. It is essential that all documents are translated into Spanish and apostilled.

Paraguay is a member of Mercosur, a regional integration organization that facilitates the movement of people, goods, and services among member countries

TEMPORARY SETTLEMENT

On the other hand, if you intend to reside in Paraguay on a temporary basis but for a longer time, you may wish to pursue a “Temporary Settlement” residency visa instead. That way, you get a year of residency, which can be extended up to five times, assuming you receive the blessing of the Paraguayan Immigration authorities

Requirements :

• Passport with entry stamp;

• Visa, should you require one to enter Paraguay;

• Birth Certificate;

• Clear criminal record check, either from your country of origin OR Certificate of Record if you lived in another country in the last five years;

• Background Certificate of Foreigners from the Information Technology Department of the National Police of Paraguay;

• Marriage Certificate / Divorce Decree, if applicable;

• Valid Certificate of Life and Residence from Paraguayan Police;

• Certificate of good health certified by a Paraguayan doctor;

• Proof of economic means;

• Present Interpol Criminal Record check, issued by Interpol Paraguay.

As you can see, there are many requirements, many of which you need to prepare before you enter Paraguay, so it is good to get all your ducks in a row or rely upon the expertise of someone who is used to dealing with these matters.

To initiate the process, individuals interested in obtaining residency in Paraguay must apply for a residence permit

PERMANENT FILLING

Now, if you are looking to make Paraguay your new home and live there permanently, then you probably want to pursue the Permanent Filing. Then once you have this residency visa, you can live in Paraguay perpetually. 

Documentation requirements:

• Passport with entry stamp;

• Birth Certificate from your country of origin;

• Criminal record check;

• A background check performed by the Paraguayan National Police;

• Apostilled marriage or divorce certificate, when applicable;

• Notarized Affidavit of Compliance stating that you will obey the law;

• Demonstration of economic means;

• Certificate of good health;

• Clear Interpol Criminal Record (international criminal masterminds need not apply).

There are various methods of demonstrating your proof of economic means. Perhaps the easiest is a bank deposit of Gs. 30,817,850 or roughly $4,500 USD to the Paraguayan National Bank. You can also demonstrate that you are a shareholder in a company or that you hold professional employment. For retirees, proof of your pension should also suffice.

There is also an investment program for those whose nationality requires a visa to enter Paraguay. It is a $70,000 USD minimum investment that must be made over ten years. Though it has limited business types, like agricultural land or commerce, purchasing real estate properties, and offering services.

Paraguay provides different types of residence permits, catering to various categories such as investors, retirees, and individuals seeking employment or the establishment of their own business

BENEFITS OF RESIDENCY IN PARAGUAY

There are a number of benefits to pursuing your permanent residency in Paraguay vs other nations. One advantage is that you don’t have to tie up many of your funds or make any investments to qualify. This can save you a lot of hassle and headaches trying to navigate the precarious landscape of a foreign economy and foreign language. Establishing residency in Paraguay allows you to pursue Paraguayan citizenship, but there are no requirements to stay in Paraguay in order to maintain your residency. It’s a great country to live in and offers tremendous value to expats. 

As part of MERCOSUR, becoming a Paraguay citizen also extends to you the benefits of MERCOSUR. These benefits are travel to most Latin America and Central America countries using only your id card, working in any of the same countries, and you can easily get residency to any of the MERCOSUR countries, which you can later upgrade to a permanent residency.

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Through its investment program, the country welcomes capital investment, promoting economic growth and development

PARAGUAY

There are a lot of great things about Paraguay. They have a territorial tax system, so you are not taxed on any income that comes from overseas. This makes establishing tax residency in Paraguay a very attractive option. Paraguay also has a flat income tax of 10% (actually, it is a slightly progressive income tax of 8%, 9%, and 10% depending on how much you earn) but still substantially lower than the high rate of progressive income taxes so popular in Europe and North America.

Corporate income tax is a flat 10%. They also have a sales tax of 10%, which accounts for 50% of all government revenue. Non-tax residents of Paraguay pay an income tax of 15% for any income earned within Paraguay, such as property rentals.