Paraguay vs Czech Republic
Tax Residency Comparison
Paraguay taxes foreign income at 0% through its territorial system, while Czech Republic taxes residents at 15-23%. Czechs 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 | 🇨🇿 Czech Republic |
|---|---|---|
| Foreign Income Tax | 0% | 15-23% |
| Capital Gains Tax | 8% | 15% |
| Corporate Tax | 10% | 21% |
| 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 Czechs Choose Paraguay
Save $20,000 - $80,000+/Year
The average czechs moving to Paraguay saves $20,000 - $80,000+ annually by eliminating 15-23% taxes on foreign-sourced income.
Territorial Tax System
Unlike Czech Republic's worldwide taxation, Paraguay only taxes income generated within its borders. Foreign income is generally exempt.
Location Freedom
While Czech Republic 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 Czech Republic Tax Problem
Social contributions are high
Complex self-employment rules
Rising living costs in Prague
EU reporting requirements
Important: Leaving Czech Republic
Czech Republic has moderate taxes but rising. Paraguay offers even lower burden with simpler compliance.
Our team includes specialists familiar with Czech Republic tax law who can help you navigate the transition properly and legally.
Who Should Consider Paraguay Over Czech Republic?
Remote Workers
Keep 100% of your foreign-earned income instead of losing 15-23% to taxes.
Entrepreneurs
Build your business without the Czech Republic 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 the Czech Republic for taxes?
For foreign income, Paraguay charges 0% versus the Czech Republic's 15-23%. Paraguay also eliminates the high Czech social contributions for self-employed individuals, which can exceed 40% of income.
What's the tax difference between Paraguay and the Czech Republic?
The Czech Republic taxes income at 15-23%, has high social contributions for entrepreneurs, and capital gains at 15%. Paraguay taxes only local income at 10%, with no social charges for non-workers and zero tax on foreign income.
Can Czechs get Paraguay residency easily?
Yes. Czech citizens enter Paraguay visa-free and can apply for permanent residency directly. The straightforward 4-6 week process requires minimal documentation 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