Paraguay vs Austria
Tax Residency Comparison
Paraguay taxes foreign income at 0% through its territorial system, while Austria taxes residents at up to 55%. Austrians switching to Paraguay residency save $60,000 - $250,000+ 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 | 🇦🇹 Austria |
|---|---|---|
| Foreign Income Tax | 0% | up to 55% |
| Capital Gains Tax | 8% | 27.5% |
| Corporate Tax | 10% | 24% |
| 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 Austrians Choose Paraguay
Save $60,000 - $250,000+/Year
The average austrians moving to Paraguay saves $60,000 - $250,000+ annually by eliminating up to 55% taxes on foreign-sourced income.
Territorial Tax System
Unlike Austria's worldwide taxation, Paraguay only taxes income generated within its borders. Foreign income is generally exempt.
Location Freedom
While Austria 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 Austria Tax Problem
Very high top marginal rate
Social security on top of income tax
Capital gains on all investments
Exit tax on emigration
Important: Leaving Austria
Austria has exit taxation. Paraguay residency helps establish non-resident status and manage exit tax obligations.
Our team includes specialists familiar with Austria tax law who can help you navigate the transition properly and legally.
Who Should Consider Paraguay Over Austria?
Remote Workers
Keep 100% of your foreign-earned income instead of losing up to 55% to taxes.
Entrepreneurs
Build your business without the Austria tax burden holding you back.
Investors
Optimize capital gains with Paraguay's favorable 8% rate vs 27.5%.
Retirees
Stretch your pension and investments further with minimal tax obligations.
Frequently Asked Questions
Is Paraguay better than Austria for taxes?
For foreign income, Paraguay is vastly superior with 0% tax versus Austria's 55% top rate. Paraguay also has no capital gains tax on foreign investments and no exit tax, compared to Austria's 27.5% capital gains and exit taxation.
What's the tax difference between Paraguay and Austria?
Austria taxes worldwide income at up to 55%, capital gains at 27.5%, and imposes exit tax on emigration. Paraguay taxes only local income at 10%, with zero tax on foreign income, no capital gains tax on foreign assets, and no wealth tax.
Can Austrians get Paraguay residency easily?
Yes. Austrian citizens enter Paraguay visa-free and can apply for permanent residency immediately. The process takes 4-6 weeks with straightforward requirements and no language test.
Explore More Resources
Everything you need to make an informed decision about Paraguay residency
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Last reviewed: February 2026