Paraguay vs Croatia
Tax Residency Comparison
Paraguay taxes foreign income at 0% through its territorial system, while Croatia taxes residents at up to 30%. Croatians switching to Paraguay residency save $20,000 - $80,000+ 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 | 🇭🇷 Croatia |
|---|---|---|
| Foreign Income Tax | 0% | up to 30% |
| Capital Gains Tax | 8% | 10% |
| Corporate Tax | 10% | 18% |
| 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 Croatians Choose Paraguay
Save $20,000 - $80,000+/Year
The average croatians moving to Paraguay saves $20,000 - $80,000+ annually by eliminating up to 30% taxes on foreign-sourced income.
Territorial Tax System
Unlike Croatia's worldwide taxation, Paraguay only taxes income generated within its borders. Foreign income is generally exempt.
Location Freedom
While Croatia 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 Croatia Tax Problem
Rising tax rates since EU entry
Social contributions high
Limited tax planning options
Bureaucratic processes
Important: Leaving Croatia
Croatia joined the Euro but taxes are rising. Paraguay offers stable low-tax residency.
Our team includes specialists familiar with Croatia tax law who can help you navigate the transition properly and legally.
Who Should Consider Paraguay Over Croatia?
Remote Workers
Keep 100% of your foreign-earned income instead of losing up to 30% to taxes.
Entrepreneurs
Build your business without the Croatia tax burden holding you back.
Investors
Optimize capital gains with Paraguay's favorable 8% rate vs 10%.
Retirees
Stretch your pension and investments further with minimal tax obligations.
Frequently Asked Questions
Is Paraguay better than Croatia for taxes?
For foreign income, Paraguay charges 0% versus Croatia's 30% top rate plus social contributions. As Croatian taxes continue rising post-EU entry, the gap with Paraguay's stable territorial system widens.
What's the tax difference between Paraguay and Croatia?
Croatia taxes income at up to 30% with rising social contributions and 10% capital gains tax. Paraguay taxes only local income at 10%, with zero tax on foreign income, no capital gains tax on foreign assets, and minimal social charges.
Can Croatians get Paraguay residency easily?
Yes. Croatian citizens enter Paraguay visa-free and can apply directly for permanent residency. The 4-6 week process requires standard documentation and no language proficiency test.
Explore More Resources
Everything you need to make an informed decision about Paraguay residency
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Last reviewed: February 2026