Paraguay vs Colombia
Tax Residency Comparison
Paraguay taxes foreign income at 0% through its territorial system, while Colombia taxes residents at up to 39%. Colombians switching to Paraguay residency save $30,000 - $120,000+ 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 | 🇨🇴 Colombia |
|---|---|---|
| Foreign Income Tax | 0% | up to 39% |
| Capital Gains Tax | 8% | 15% |
| Corporate Tax | 10% | 35% |
| Wealth Tax | None | 0.5-1.5% on global assets |
| 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 Colombians Choose Paraguay
Save $30,000 - $120,000+/Year
The average colombians moving to Paraguay saves $30,000 - $120,000+ annually by eliminating up to 39% taxes on foreign-sourced income.
Territorial Tax System
Unlike Colombia's worldwide taxation, Paraguay only taxes income generated within its borders. Foreign income is generally exempt.
Location Freedom
While Colombia 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 Colombia Tax Problem
Worldwide taxation for residents
Wealth tax on global assets
Complex reporting requirements
Exit tax considerations
Important: Leaving Colombia
Colombia has wealth tax on residents. Paraguay offers territorial system without wealth taxation.
Our team includes specialists familiar with Colombia tax law who can help you navigate the transition properly and legally.
Who Should Consider Paraguay Over Colombia?
Remote Workers
Keep 100% of your foreign-earned income instead of losing up to 39% to taxes.
Entrepreneurs
Build your business without the Colombia 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 Colombia for taxes?
For foreign income and wealth, Paraguay is dramatically better. Colombia charges up to 39% income tax plus 0.5-1.5% wealth tax on global assets. Paraguay has 0% tax on foreign income, no wealth tax, and a stable 10% flat rate.
What's the tax difference between Paraguay and Colombia?
Colombia taxes income at up to 39%, imposes 0.5-1.5% wealth tax on global assets, and has 35% corporate tax. Paraguay taxes only local income at 10%, has no wealth tax, a 10% corporate rate, and zero tax on foreign income.
Can Colombians get Paraguay residency easily?
Yes. Colombian citizens enter Paraguay visa-free and can apply directly for permanent residency. The shared Spanish language and Latin American cultural ties make the process and integration especially smooth.
Explore More Resources
Everything you need to make an informed decision about Paraguay residency
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Last reviewed: February 2026