Paraguay vs Australia
Tax Residency Comparison
Paraguay taxes foreign income at 0% through its territorial system, while Australia taxes residents at up to 45%. Australians switching to Paraguay residency save $45,000 - $180,000+ 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 | 🇦🇺 Australia |
|---|---|---|
| Foreign Income Tax | 0% | up to 45% |
| Capital Gains Tax | 8% | 50% discount after 12 months |
| Corporate Tax | 10% | 30% |
| 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 Australians Choose Paraguay
Save $45,000 - $180,000+/Year
The average australians moving to Paraguay saves $45,000 - $180,000+ annually by eliminating up to 45% taxes on foreign-sourced income.
Territorial Tax System
Unlike Australia's worldwide taxation, Paraguay only taxes income generated within its borders. Foreign income is generally exempt.
Location Freedom
While Australia 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 Australia Tax Problem
High marginal tax rates
Medicare levy surcharge
Superannuation complexities
Limited tax treaties
Important: Leaving Australia
Australians can establish non-resident status by genuinely residing abroad. Paraguay residency provides documentation for Australian Tax Office.
Our team includes specialists familiar with Australia tax law who can help you navigate the transition properly and legally.
Who Should Consider Paraguay Over Australia?
Remote Workers
Keep 100% of your foreign-earned income instead of losing up to 45% to taxes.
Entrepreneurs
Build your business without the Australia tax burden holding you back.
Investors
Optimize capital gains with Paraguay's favorable 8% rate vs 50% discount after 12 months.
Retirees
Stretch your pension and investments further with minimal tax obligations.
Frequently Asked Questions
Is Paraguay better than Australia for taxes?
For foreign income, Paraguay is dramatically better with 0% tax versus Australia's 45% top rate plus Medicare levy. Paraguay also has a 10% corporate tax versus Australia's 30%, and no superannuation complexity.
What's the tax difference between Paraguay and Australia?
Australia taxes worldwide income at up to 45% plus 2% Medicare levy, with a 30% corporate rate. Paraguay taxes only local income at 10%, has a 10% corporate rate, zero tax on foreign income, and no social insurance requirements for non-workers.
Can Australians get Paraguay residency easily?
Yes. Australian citizens enter Paraguay visa-free and can apply for permanent residency directly. The process takes 4-6 weeks with straightforward documentation and no language or investment requirements beyond a small bank deposit.
Explore More Resources
Everything you need to make an informed decision about Paraguay residency
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Last reviewed: February 2026