Paraguay vs Brazil
Tax Residency Comparison
Paraguay taxes foreign income at 0% through its territorial system, while Brazil taxes residents at up to 27.5%. Brazilians switching to Paraguay residency save $25,000 - $100,000+ 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 | 🇧🇷 Brazil |
|---|---|---|
| Foreign Income Tax | 0% | up to 27.5% |
| Capital Gains Tax | 8% | up to 22.5% |
| Corporate Tax | 10% | 34% |
| 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 Brazilians Choose Paraguay
Save $25,000 - $100,000+/Year
The average brazilians moving to Paraguay saves $25,000 - $100,000+ annually by eliminating up to 27.5% taxes on foreign-sourced income.
Territorial Tax System
Unlike Brazil's worldwide taxation, Paraguay only taxes income generated within its borders. Foreign income is generally exempt.
Location Freedom
While Brazil 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 Brazil Tax Problem
Complex tax system
Foreign asset reporting (DCBE)
Currency controls
High compliance burden
Important: Leaving Brazil
Brazil has complex exit procedures. Paraguay neighbors Brazil and offers significantly simpler tax residency.
Our team includes specialists familiar with Brazil tax law who can help you navigate the transition properly and legally.
Who Should Consider Paraguay Over Brazil?
Remote Workers
Keep 100% of your foreign-earned income instead of losing up to 27.5% to taxes.
Entrepreneurs
Build your business without the Brazil tax burden holding you back.
Investors
Optimize capital gains with Paraguay's favorable 8% rate vs up to 22.5%.
Retirees
Stretch your pension and investments further with minimal tax obligations.
Frequently Asked Questions
Is Paraguay better than Brazil for taxes?
For foreign income and corporate taxation, Paraguay is significantly better. Brazil charges up to 27.5% personal tax and 34% corporate tax with complex compliance. Paraguay charges 10% on local income only, with zero foreign income tax.
What's the tax difference between Paraguay and Brazil?
Brazil taxes worldwide income at up to 27.5%, corporate profits at 34%, and has complex DCBE reporting. Paraguay taxes only local income at 10%, has a 10% corporate rate, zero tax on foreign income, and much simpler compliance requirements.
Can Brazilians get Paraguay residency easily?
Yes, especially easily. As Mercosur citizens, Brazilians have facilitated access to Paraguay residency. The process takes 4-6 weeks, and the shared border means many Brazilians already have 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