Paraguay vs China
Tax Residency Comparison
Paraguay taxes foreign income at 0% through its territorial system, while China taxes residents at up to 45%. Chinese switching to Paraguay residency save $50,000 - $200,000+ 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 | 🇨🇳 China |
|---|---|---|
| Foreign Income Tax | 0% | up to 45% |
| Capital Gains Tax | 8% | 20% |
| Corporate Tax | 10% | 25% |
| 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 Chinese Choose Paraguay
Save $50,000 - $200,000+/Year
The average chinese moving to Paraguay saves $50,000 - $200,000+ annually by eliminating up to 45% taxes on foreign-sourced income.
Territorial Tax System
Unlike China's worldwide taxation, Paraguay only taxes income generated within its borders. Foreign income is generally exempt.
Location Freedom
While China 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 China Tax Problem
Increasing global taxation push
CRS reporting expanding
Capital controls on outflows
Complex residency determination
Important: Leaving China
China is tightening overseas tax rules. Paraguay residency helps establish genuine non-residency.
Our team includes specialists familiar with China tax law who can help you navigate the transition properly and legally.
Who Should Consider Paraguay Over China?
Remote Workers
Keep 100% of your foreign-earned income instead of losing up to 45% to taxes.
Entrepreneurs
Build your business without the China tax burden holding you back.
Investors
Optimize capital gains with Paraguay's favorable 8% rate vs 20%.
Retirees
Stretch your pension and investments further with minimal tax obligations.
Frequently Asked Questions
Is Paraguay better than China for taxes?
For foreign income, Paraguay charges 0% versus China's 45% top rate. Paraguay also has no capital controls, no CRS-related domestic reporting requirements, and provides a stable legal framework for international business.
What's the tax difference between Paraguay and China?
China taxes worldwide income at up to 45%, capital gains at 20%, and has strict capital controls. Paraguay taxes only local income at 10%, has zero tax on foreign income, no capital controls, and a straightforward banking system.
Can Chinese get Paraguay residency easily?
Chinese citizens require a visa to enter Paraguay, which adds an extra step compared to most nationalities. However, once in the country, the permanent residency process takes 4-6 weeks with standard documentation.
Explore More Resources
Everything you need to make an informed decision about Paraguay residency
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Last reviewed: February 2026