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Discover How to Obtain Residency in Paraguay
Obtaining residency in Paraguay is a process I went through myself.
I applied for temporary residency with a few documents and after two years, with help from Matt and his full service team, I converted to permanent residency.
Read on for the full process, required documents, benefits and a video on how to get permanent residency in Paraguay.
How to get residency in Paraguay
In this video with Matt, my trusted partner in Paraguay, we discuss why people are moving to Paraguay, opening a company, residency application process, and how to become a tax resident.
The good thing about Matt is that he gets the job done. He not only helped me obtain and upgrade my temporary residency to permanent residency in Paraguay, but helped many of my clients as well. If you are interested in learning more about his services, contact him to get the brochure.
Why choose residency in Paraguay?
It really feels like an achievement to have this great plan B in place, though many people use it as a plan A and fully immigrate to Paraguay.
As a permanent resident of Paraguay I can now easily get my driver’s license, tax residency certificate, local bank accounts and can easily convert some crypto locally. The transaction taxes for real estate also become lower as a resident of Paraguay.
In the future I plan on bringing my wife and kids so that I can sponsor them for residency as well.
Top 10 Benefits of having a second residency in Paraguay:
- With proper structuring for non-US people, 0% taxes on money earned outside of Paraguay
- Perfect Plan B far away from all the drama.
- Geographic location – same time zone as North America. It’s fantastic for remote workers.
- Multiple international schools.
- Affordable healthcare and low cost of living.
- Substantial infrastructure development.
- Relative political neutrality in an increasingly bifurcated world.
- Net food exporter and strong water security.
- Very easy to get residency and even convert your driver’s license.
- Real estate transaction taxes are lower as a resident
What are the two Residency options in Paraguay?
- Two-year temporary residency followed by permanent residency
- Residency by Investment: Permanent residency from day one
Option #1: Two year residency followed by permanent residency in Paraguay
What is the process and timeline?
You just need to show up with a few documents and you will be granted temporary residency. After two years of temporary residency you can apply for permanent residency.
Obtaining permanent residency this way will take between two and three trips to Paraguay.
– One trip to apply for temporary residency. You may then stay in Paraguay for about 3-4 months, the time is takes to obtain the actual residency, or leave and come back. Once you receive your temporary residency you can apply for a two year Cedula (ID card) which now takes a few days to obtain.
– A second or third trip is to be done up to three months before the expiration of your two year residency. At that point you can apply for permanent residency. You will obtain it 3-4 months later. You may come back or not to pick it up and apply for your ten year Cedula.
Who can apply?
Pretty much anyone from a developed country can obtain residency in Paraguay.
The two year temporary residency followed by permanent residency in Paraguay residency option only works for those from OECD or Western countries; North Americans, Europeans, other Latin Americans, people from developed Asian countries and South Africans.
People from developing countries outside of Latin America, Europe, and South Africa will generally get rejected by the immigration authorities. Paraguay only wants a certain type of immigration.
Required Documents
To apply for residency you will need the following documents.
- Criminal Background Check from back home with apostille or proper certification
- Birth Certificate with apostille or proper certification
- Marriage Certificate with apostille or proper certification (if applicable);
- Application Form (to be done by Matt)
- Fingerprints (to be done at the police station, organized by Matt)
- A special immigrant visa for Paraguay which you can easily do in Argentina across the border, which Matt will also set up for you
Option #2: Residency by Investment
The residency by investment option will get you permanent residency from day one in Paraguay.
However, this one is quite complicated. You need to demonstrate that you will invest at least $70,000 in a local business and will create at least five local jobs. And they come check to ensure that you are actually implementing your commitment.
People from emerging markets are typically required to first obtain a visa before going to Paraguay.
People from developing countries routinely get their temporary residency applications (option #1) rejected so investing (option #2) is the only viable path forward.
What are the requirements to keep the permanent residency active?
Once you are a permanent resident of Paraguay, you just need to set foot in the country once every three years for 24h to keep your residency active.
How to obtain tax residency in Paraguay?
This topic is ambiguous. You can simply obtain a tax number (RUC) and files monthly taxes declaring some consulting income. For the Paraguayan authorities this is enough for them to consider you a tax resident. Matt has accountants on board who can help with this.
However you must ensure that you do not become a tax resident in other jurisdictions as such a set-up could come into question, especially as Paraguay does not have a strong network of double tax avoidance treaties. Then it becomes about substance, which this definitely helps with, but may or may not be enough depending on your particular situation.
Apply for Residency in Paraguay with Matt
Matt has been living in Asuncion for a number of years and has helped over 100 people obtain residency in Paraguay. He is also the co-founder of a real estate agency helping people find investment properties and land in and around Asuncion.
Matt will be happy to assist you to obtain residency in Paraguay and has a team that provides a full-service experience. Get the brochure for detailed pricing by completing the form below.
Working With Trusted Partners
Do I need an agent or lawyer to apply for residency in Paraguay?
Some people will try to convince you that you need an agent to apply for residency in Paraguay.
You don’t.
You can do it by yourself, and save a few hundred dollars in the process. The immigration department has all the information on their website.
When applying for residency in Paraguay there are a number requirements and if you make a single mistake, then you are back to zero and have to pay the government fees all over again. A good agent will save you a lot of time, stress, and money by helping you avoid making mistakes.
Convert your driver’s license in Paraguay
Matt and his team helped me go through the process of converting my drivers license. It took half a day to get my driver’s license for cars and motorbikes.
Can I get residency in Paraguay using crypto?
Yes, Matt accepts crypto for his services. He can also help you buy real estate in Paraguay using crypto entirely.
How to avoid getting scammed when applying for Residency in Paraguay
I heard countless stories of people getting scammed in Paraguay, including by actual lawyers. Here is an actual quote from an expat forum on one of the well-known lawyers Asuncion:
“Hey crew, For anyone looking for an agent in Paraguay AVOID L***** ******A. Short version is she is a criminal. She runs off with solvency deposits, fees, forges official documents, etc. She had a POA to receive my bank debit cards and a credit card and ran my credit card up in excess of 20,000,00.00 PYG and put me into collections. You can DM for longer version or if youve been burned and might want a lawyer.”
To be clear, we don’t mention such matters for all the other residency options we offer, but for Paraguay we have to highlight it because it is so endemic. I won’t publish the name of this particular lawyer which keeps popping up, but such people rank well on google as service providers.
Other services in Paraguay:
Articles on Paraguay:
Video Transcript
Video: How to get residency and tax residency in Paraguay
LADISLAS MAURICE: Hello, everyone. Ladislas Maurice of The Wandering investor. Today, we’ll be discussing residency in Paraguay because there have been a few changes. It’s become a little bit more complicated, but it’s still not too hard. We’ll be discussing why Paraguay and how to obtain residency here in Paraguay together with Matt. Matt, how are you?
MATT: I’m good, thanks.
Expat community growth in Paraguay
LADISLAS MAURICE: Cool. Look, I just came back. I hadn’t been back here in two years, and I just cannot believe the amount of people that have moved to Paraguay. The situation has really, really changed. I remember two years ago, there were barely any foreigners here in Asunciรณn, and now I’m seeing, whenever I walk out, go to the mall, or just walk on the street, I see Americans, Canadians, Europeans. I see new buildings being built. Back then there wasn’t that much construction, now there’s quite a lot of construction. I mean, the country has gone through two years of a lot of growth.
Why are people moving to Paraguay
LADISLAS MAURICE: Why are your clients, because you help people obtain residency here, why are your clients moving to Paraguay?
MATT: Some of them they just come for the residency because it’s really easy to obtain. And other people, they also come to live here because they really like the country. The main reason is about what’s going on in Europe, in Canada, in the United States, because of the taxes. Right now, the tax are really high, and you don’t even get a good service for what you pay. That’s the main problem. And also, about safety problems. There is a lot of immigration now, and the countries, they can’t really control it anymore, so it’s causing a lot of problems. And people, they don’t really feel safe anymore. They don’t understand why they pay so much and they get so little in return, so they start looking for other options, and Paraguay is, right now, one of the best option in the world, I would say. Even if it’s not so famous, it’s becoming to get a bit known now, because the tax are really low.
LADISLAS MAURICE: If you do things properly, and you live in Paraguay, you do not pay any taxes on foreign-earned income. If you’re American, different story. We’re not here to talk about American taxes, but generally speaking, for everyone else, you can get away with zero taxes.
MATT: Exactly. And even imagine you want to open a company in Paraguay, you just pay 10% taxes and 10% VAT. I mean, it’s not too much. Besides from the taxes, a lot of people also come here because they want a more traditional lifestyle. They want to buy their land, they want to build their house, to be in the country without anybody telling them what to do. Because it’s another problem that we have in the Western world, is that you can’t even build your own house. You need to building permit. It needs to be like this, like this, and you can’t live your life freely.
A lot of people, they really like it here, because it may seem a bit chaotic at first, but actually it’s not that chaotic. If you compare to other countries, it’s a really stable country. And you can do whatever you want, as long as you respect the other people, of course. And that’s what people really love about Paraguay.
LADISLAS MAURICE: Yeah. I mean, I like it a lot here. Again, I see the improvement in just two years. All the good things have remained a constant, they’re still just as good. You can still pay no taxes, you can get residency quite easily, though it’s become a little harder. You can get guns. You can just buy, build, do whatever. But at the same time, there’s been a lot of infrastructure development, so the roads have become better. There’s a lot more choice when it comes to eating out, drinking, entertainment, all of that, so big infrastructure development in the country, and it’s visible.
Starting companies in Paraguay
MATT: Yes. I mean, it’s not over yet, the country is still growing. Right now, I think it’s 4.8% growth per year, so I mean, it’s amazing. And when you come here, you will see there is some things missing. It’s not perfect, but it’s in the process. And at the same time, it’s a really great opportunity, because some things are missing, so you can come also here to start a company, to grow your business, and to do your professional activities.
LADISLAS MAURICE: Yeah. And the type of immigrants coming here really come from all walks of life. I think you see it with your clients. I’ve come across people, look, a lot of digital nomads, for sure, people that work online, but also people that just come here and will start a bakery, or a pastry shop, or an ice cream shop. It’s not just people that work online, it’s people that come here, move here, start businesses, and are proper immigrants.
MATT: Exactly. At first, when I started doing this business, helping people, I was thinking, only people who want to escape that would come, but it’s not the reality, as you said. Most of the people who come, they just want to escape Europe, escape the US, or Canada, because it’s becoming a mess, and it’s difficult to grow family. Most people just want a simple life, a quiet life. They want to make their money and to keep it. I mean, if you give 70%, I mean, that’s not really fair.
LADISLAS MAURICE: [laughs]
MATT: A lot of different profiles, some entrepreneurs, some digital nomads, some normal people, I would say, just want a quiet life. That’s a really good place, and everybody’s welcome.
Residency process in Paraguay
LADISLAS MAURICE: Cool. Concretely now, let’s say, I am sitting in the US, I contact you, or sitting in Holland or whatever, and I say I want residency in Paraguay, what’s the process?
MATT: The process is pretty simple. First, you will need to collect your documents in your home country. You will need a passport, of course, with at least six months of validity. And then you will need two other documents. First, the birth certificate, and then the criminal records. Both of these documents need to be apostilled. The apostille is just an international agreement that says that document can be received by the Paraguayan administration, so it’s not that complicated.
Besides from that, if you are married, divorced, or widowed, you will also need a paper that proves your current state. And of course, you will need to apostille the document to make it official and receivable. In some countries, this is also written on the birth certificate, it really depends. Most of the time you will need to add another document.
LADISLAS MAURICE: Okay. And what about the timeline?
MATT: About the timeline, you will need, first, to come to Paraguay to apply for the temporary residency. You have all your documents, you arrive in Paraguay, we pick you up, and we will go around the administration to get a few paper from Paraguay. For example, the criminal record from Paraguay, the Interpol. And once we recollect everything, we will prepare your file, your application, and then we will go to migration and give it to the administration. Once this is done, you will need to wait three months to get an answer from the government. During this three month, you can stay in Paraguay. You can also go outside in your home country. This is the first step.
The second step is you need to come again to get your residency and to apply for the cรฉdula. The cรฉdula is like an ID card from Paraguay. You don’t need any extra paper for the cรฉdula. We will do everything with all the paper you gave us previously. And you will need also a few days to apply for a cรฉdula. And then there is a waiting time of about 60 to 70 days. This is the two main steps for the temporary residency. The third step is to come back for the permanent after two years of applying for the temporary. And basically, once you have the permanent, everything is done, you have everything you need. And the good thing to have the permanent is that you only need to come once every three years in the country. During the temporary, you will need to come once every year.
LADISLAS MAURICE: Cool. Essentially, two trips to get the full temporary residency, and then you need to come back again for permanent residency.
MATT: Exactly.
LADISLAS MAURICE: All right. And then the other documents you can collect later, essentially.
MATT: Exactly.
LADISLAS MAURICE: There’s no rush to get the other documents when you have permanent residency.
MATT: Once you apply for the document, it stays in the administration, and there is no rush to collect it. You can collect it later when you come back.
LADISLAS MAURICE: Three trips in about two years, roughly?
MATT: Exactly.
Tax residency in Paraguay
LADISLAS MAURICE: And that gets you permanent residency. And it’s a great Plan B. Again, just once every three years to keep it active. Okay, so now let’s talk about the tax situation. I mean, you help people with the accounting, etc. The way it works is you create a little local company, correct?
MATT: Yes, exactly.
LADISLAS MAURICE: Right. You get a tax number, you create a local company, you declare some income through that local company, consulting or whatever, you pay some tax. And then you can show, for example, if you’re traveling a lot and you are not a tax resident elsewhere, let’s be very clear, if you’re not a tax resident elsewhere, and a bank asks you, where are you a tax resident? Then in the vast majority of cases, this would suffice. You show your Paraguayan tax number, you show an address, and then you show that you’ve declared taxes in Paraguay.
MATT: To maintain this tax status in Paraguay, you need to make declaration every month. That’s really important. If you don’t do it, you will lose it. As you said, also, you need to be really careful, because if you spend too much time in another country, you may have some problems. Getting tax residency in Paraguay is not the only thing. It works, Paraguay is totally okay with that, but the thing you need to be careful about is the other countries.
LADISLAS MAURICE: Yeah. It’s not a free-for-all. This is really important, it’s ambiguous. Because a lot of people online will tell you, oh, you get tax residency in Paraguay, and then they go spend six months minus one day in France, or Spain, or Canada, and then they think they’re fine. It’s like, no, you’re not. [laughs] If this is what you’re trying to do, this will not work at all. It’s a document, it means something, but the most important part is being compliant on the other side.
MATT: Yes, exactly.
LADISLAS MAURICE: Cool. A bit ambiguous, but it works if you play right.
MATT: I mean, as long as you respect everything in Paraguay, there will be no problem. Just take care of your situation, be serious about this, because you don’t want this kind of problem, you know?
LADISLAS MAURICE: Yeah. Yeah, yeah. Because, I mean, it’s not like it’s unknown, right? People playing the Paraguay card, it’s something that has been done, that’s increasingly done. Don’t try to be too smart. [laughs] We’ll just leave it at that. Great. Matt, you help people obtain residency here, get driver’s license, invest in real estate as well, you have a real estate agency, and then do all the accounting, the tax stuff, correct?
MATT: Yes, exactly. Basically, we take care of anything that a foreigner would need when he comes here, because when we came here with my associate, it was a bit empty, like you said. And we got help from some people, but it was not really clean. And we wanted to make something professional to people can trust us, and we can make a really professional process. Yeah, basically, we can help people to get their residency from A to Z. We can help them apply for taxes, to fill the taxes every month. And also, if they want to buy, to invest in Paraguay, which is a great place to invest right now, we can also help them for that.
Get in touch with Matt
LADISLAS MAURICE: Great, fantastic. If you want more information on how to obtain residency in Paraguay, there’s a link below, and then you can also use this link to get in touch with Matt and his team.