Paraguay vs Argentina
Tax Residency Comparison
Paraguay taxes foreign income at 0% through its territorial system, while Argentina taxes residents at up to 35%. Argentines switching to Paraguay residency save $30,000 - $130,000+ per year on average, with a fast 90-day process and only a $5,000 bank deposit required.
Side-by-Side Tax Comparison
| Category | 🇵🇾 Paraguay | 🇦🇷 Argentina |
|---|---|---|
| Foreign Income Tax | 0% | up to 35% |
| Capital Gains Tax | 8% | 15% |
| Corporate Tax | 10% | 35% |
| Residency Timeline | 90 days | N/A |
| Investment Required | $5,000 bank deposit | N/A |
| Physical Presence | Once every 3 years | 183+ days/year |
| Path to Citizenship | 3 years to citizenship | Varies |
Why Argentines Choose Paraguay
Save $30,000 - $130,000+/Year
The average argentines moving to Paraguay saves $30,000 - $130,000+ annually by eliminating up to 35% taxes on foreign-sourced income.
Territorial Tax System
Unlike Argentina's worldwide taxation, Paraguay only taxes income generated within its borders. Foreign income is generally exempt.
Location Freedom
While Argentina requires 183+ days presence, Paraguay only requires a visit once every 3 years to maintain residency.
Fast Process
Get permanent residency in just 90 days. No years of waiting, no complex point systems, no quotas.
The Argentina Tax Problem
Personal asset tax (wealth tax)
Currency controls and cepo
High inflation erodes savings
Constant tax changes
Important: Leaving Argentina
Argentina has wealth tax and currency controls. Paraguay neighbor offers escape from Argentine fiscal chaos.
Our team includes specialists familiar with Argentina tax law who can help you navigate the transition properly and legally.
Who Should Consider Paraguay Over Argentina?
Remote Workers
Keep 100% of your foreign-earned income instead of losing up to 35% to taxes.
Entrepreneurs
Build your business without the Argentina tax burden holding you back.
Investors
Optimize capital gains with Paraguay's favorable 8% rate vs 15%.
Retirees
Stretch your pension and investments further with minimal tax obligations.
Frequently Asked Questions
Is Paraguay better than Argentina for taxes?
Paraguay is dramatically better for tax stability and freedom. Argentina has wealth tax, currency controls (cepo), 35% income and corporate tax, and constant policy changes. Paraguay charges 10% on local income only with no wealth tax or capital controls.
What's the tax difference between Paraguay and Argentina?
Argentina taxes income at up to 35%, imposes personal asset tax, has currency controls, and 35% corporate tax. Paraguay taxes only local income at 10%, has no wealth tax, no currency controls, free use of US dollars, and 10% corporate tax.
Can Argentines get Paraguay residency easily?
Yes, very easily. As Mercosur citizens, Argentines have facilitated access. The process takes 4-6 weeks with minimal documentation, and many Argentines already have familial or business connections to Paraguay.
Explore More Resources
Everything you need to make an informed decision about Paraguay residency
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Last reviewed: February 2026