In just a few short years, Paraguay went from a sleepy backwater to one of the top destinations for freedom seekers in the Western hemisphere.
While obtaining residency there used to be a question of assembling some basic documents and paying a small fee, the times are changing. As is the case with any easy, high-quality residency program, the authorities eventually have no choice but to clamp down to address runaway application volume.
Just look at the lines at the immigration department in Asuncion when I went back in March.
Documentation requirements are now more strict
For those looking to get the free residency, the following changes have been implemented which Matt discusses in the video below:
- Proof of Income: Previously, applicants were asked to prove some sort of basic income as part of the application, but in practice nobody bothered to verify it. Now, you must give evidence of Paraguayan income, or that you have brought some of your global income into the country.
- Daily cap on immigration appointments: Paraguay is only accepting applications from 200 people per day.
Paraguay is prioritizing individuals who bring investment, file income taxes or otherwise contribute to the country. You can expect restrictions on the free residency pathway to only grow with time.
There are easy pathways to immediate PR, but you’ll need to pony up
- $200,000 in real estate held for two years. You can also invest in off-plan real estate with 30% down and still qualify.
- $200,000 investment the local stock market held for two years.
- $150,000 in a tourism related company.
- $40,000 permanent residency in a single trip through investing in a Paraguayan film.
Paraguay remains top-tier if things go sideways
It’s remote, it’s low-tax, it’s out of the crosshairs and is mostly self-sufficient as far as food and basic necessities. It wouldn’t be the worst place to wait out a global conflict or comparable disruption.
Why Matt?
Unlike other residency agents in Paraguay, Matt and his partner have a fully-fledged real estate agency catering to numbers-oriented investors. They’ll be able to find you the right properties, crunch the ROI and help you manage your properties.
This is in contrast to the other agencies that will feed you random projects at questionable prices.
Resources:
- How to obtain residency in Paraguay and contact Matt
- Asuncion Real Estate Investor Guide
- Real Estate Investment case study Asuncion
To a World of Opportunities,
The Wandering Investor
Services in Paraguay:
- My Real Estate Buyer’s Agent in Asuncion, Paraguay
- How to obtain Residency in Paraguay
- How to obtain Permanent Residency in Paraguay through investment in film production
Articles on Paraguay:
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Transcript of “Update on Paraguay Residency Options – Restrictions and New Pathways”
LADISLAS MAURICE: Unfortunate news from Paraguay, immigration is becoming tougher. We’ll be discussing this with Matt who has been helping people immigrate and invest in Paraguay for quite a few years. Matt, how are you?
MATT: I’m very good, thank you. Yeah, indeed, it’s becoming more and more difficult as you said. Paraguay is sending a clear message, their residency is still possible, of course, but they are showing that they want to bring more investors, they want to bring people that actually declare taxes in the country, and they don’t want people who just have the papers but don’t bring anything to the country.
Current requirements for obtaining residency in Paraguay
LADISLAS MAURICE: You can still do the free residency effectively, you just kind of rock up as a Westerner in Paraguay, you get an agent to help you with the paperwork, and, you know, you come back a few times and then you get permanent residency after which you just need to show it once every three years to keep it active. It’s still possible but now they’re just increasing the requirements, right? For this one.
MATT: Exactly. So, before, there were actually some laws that were saying that you need to show proof of income when you apply for the permanent, but in the reality it was never asked. Now they are actually put this law into action, so they would ask you to present some income from the country. So, you can actually have some properties in the country, and with the rent, you will have Paraguayan income. The other option is to have some international income and to be able to produce some invoice in Paraguay and send a little part of this income in Paraguay.
LADISLAS MAURICE: And now there’s even a cap on the number of people who can get immigration appointments every day, right?
MATT: Yes, that’s totally crazy. At the moment, we can only accept 200 people per day for the applications.
LADISLAS MAURICE: Look, immigration to Paraguay is booming. There is conflict and uncertainty and rising taxes all over the world, and there’s just a lot of Europeans and North Americans that move to Paraguay or that make Paraguay their plan B, and most importantly, many more Argentinians and Brazilians that move to Paraguay. So, just like a lot of people from the West who get residency in Paraguay because they don’t agree with their own country’s immigration policies that are too liberal, well guess what? These things are also happening in Paraguay. Surprise, surprise. And people are saying, wait, who are all these people getting residency here? They just come like once or twice, they get PR, they’re not really bringing that much to the country. So they’re making it harder just as they introduced the immediate permanent residency through real estate investment. The government is just trying to squeeze the kind of the cheap people, if I can put it this way, or people who don’t want to invest, and to put pressure and say, actually, you know what, if you don’t want to go through all that hassle, there’s this really easy option in five days you walk away with your permanent residency, just invest $200,000 in real estate.
Changes to Paraguay’s immigration rules
LADISLAS MAURICE: Like Matt, it’s what, every six months there’s news from Paraguay immigration?
MATT: Yeah, honestly, it’s been changing quite a lot recently, and we’ll think it will continue in this direction. But as you said, for me, it’s not even bad news because they are just a little bit more picky about the people coming in, but if you’re interested in coming to Paraguay, it’s still a great country. It’s still really good opportunities when it comes to investment, and it’s actually easier for someone putting money in the country to get their residency, so that’s pretty good.
How much do you need to invest to obtain residency in Paraguay?
LADISLAS MAURICE: Yeah, so 200,000 in real estate gets you permanent residency and your underage children. But if you have a spouse, they also need to put 200,000 on their end. It’s a little odd. But you can actually only start by investing 60,000 in real estate. Can you elaborate on this option?
MATT: Yeah, so basically, the minimum you need to enter is like 30% of the total amount. You can buy off-plan property, for example, so you don’t have to put all the money at once. You just put 30% up front, and then you can pay the rest over 24 months. So that’s actually quite interesting to protect your capital.
LADISLAS MAURICE: Okay, so 60,000 down and then two years to pay the balance. Look, there’s also a film investment option. We’ve been helping some of our clients with this one. It’s only $40,000, you invest in a Paraguayan film, also five days you get permanent residency immediately. It’s the Ministry of Audiovisual and Culture got an exemption for this. So are we saying that it’s a great investment? No, it’s a Paraguayan film, but it just gets the job done and now for people who don’t want to deal with property or don’t want to put that much capital in in in getting residency there. That’s the reality.
Benefits of living in Paraguay
LADISLAS MAURICE: When an immigration program is that appealing, low tax, and almost, you know, zero tax if you structure things correctly with no taxes on foreign earned income, peaceful country, nice country to live in, food, water, energy security, the whole deal in a volatile world, and immigration was that easy, well guess what? It’s bound to change because people will go there. It’s not too late to get in Paraguay at all, it’s not too late at all, but it’s just going to get tougher and tougher over time. I think that’s the main message. And when you see another immigration program like, oh my god, that’s such a good deal, guess what? You’re not the only one thinking about it, whilst you’re thinking about it, other people are acting on it, and as other people are acting on it, the local population is saying, wait, who are all these people? And then politicians as a response are going to make it tougher. So, you know, if there’s an immigration program you like and you can afford, just do it, push back a vacation or two, and just focus on getting that, on getting that plan B. That’s the main message. And the reality is when you look at the real estate market in Paraguay, they’re building quite a lot, and they will continue to build with, you know, the way the government is trying to push FDI, but you’re getting a lot of real estate for your money. For $200,000, you can probably get three one-bedroom apartments with rooftop swimming pool and all that. I remember Matt, last time we were chatting, one of your clients even bought four studios. So it’s like, okay, you know, you 200k, you get four studios, you can put them on Airbnb or just rent them out long term. It’s not like it’s dead money, you know, this money is working for you.
Real estate opportunities in Asuncion, Paraguay
MATT: What’s also interesting is that the real estate market, as you said, there is a lot of opportunities, it’s building a lot, but the buildings are not empty. Of course, tourism is still pretty low for Paraguay, we have to be honest about that. It’s still growing, but there are a lot of people coming to make business in Paraguay, especially Argentinian, Brazilian, and also Europeans. There is a lot of demand for short-term. There are a lot of Brazilian company with branches in Asunción. So some executives, they have to be there once a week, once a month, and there is a constant demand for accommodation. We have a real estate company, we can totally help you finding the right product for your investment. We are dedicated for investors specifically. So we can show you the return, all the numbers when it comes to investing in Paraguay.
How to contact Matt to obtain residency in Paraguay
LADISLAS MAURICE: Thank you, Matt. I mean your team helped me get permanent residency in Paraguay. So, if you’re interested in finding out more about how to obtain residency in Paraguay, whether the more affordable route through temporary residency or the premium route through immediate permanent residency, there is a link below with the full information and you can get in touch with Matt and his team. And also, I wrote a whole article on the real estate market in Asunción, the neighborhoods that are interesting, the ones you should avoid, etc. There’s a link below as well. Matt, thank you very much.
MATT: Thanks a lot and see you soon.
LADISLAS MAURICE: Make sure to download my free ebook, 12 Mistakes to Avoid when Investing in International Real Estate, which you can find on my website, link below, and feel free to follow me on Instagram at thewanderinginvestor. I look forward to hearing from you.
