Paraguay vs Denmark
Tax Residency Comparison
Paraguay taxes foreign income at 0% through its territorial system, while Denmark taxes residents at up to 56%. Danes switching to Paraguay residency save $70,000 - $300,000+ 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 | 🇩🇰 Denmark |
|---|---|---|
| Foreign Income Tax | 0% | up to 56% |
| Capital Gains Tax | 8% | up to 42% |
| Corporate Tax | 10% | 22% |
| 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 Danes Choose Paraguay
Save $70,000 - $300,000+/Year
The average danes moving to Paraguay saves $70,000 - $300,000+ annually by eliminating up to 56% taxes on foreign-sourced income.
Territorial Tax System
Unlike Denmark's worldwide taxation, Paraguay only taxes income generated within its borders. Foreign income is generally exempt.
Location Freedom
While Denmark 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 Denmark Tax Problem
Highest income taxes in the world
High capital gains rates
Limited deductions available
Church tax if member
Important: Leaving Denmark
Denmark has some of the highest taxes globally. Paraguay residency offers massive savings for Danish emigrants.
Our team includes specialists familiar with Denmark tax law who can help you navigate the transition properly and legally.
Who Should Consider Paraguay Over Denmark?
Remote Workers
Keep 100% of your foreign-earned income instead of losing up to 56% to taxes.
Entrepreneurs
Build your business without the Denmark tax burden holding you back.
Investors
Optimize capital gains with Paraguay's favorable 8% rate vs up to 42%.
Retirees
Stretch your pension and investments further with minimal tax obligations.
Frequently Asked Questions
Is Paraguay better than Denmark for taxes?
For personal income, Paraguay offers the largest possible improvement with 0% on foreign income versus Denmark's 56% top rate. Capital gains are also untaxed on foreign assets in Paraguay, versus up to 42% in Denmark.
What's the tax difference between Paraguay and Denmark?
Denmark taxes income at up to 56%, capital gains at up to 42%, and has church tax. Paraguay taxes only local income at 10% with zero tax on foreign income, no capital gains tax on foreign investments, and no church or municipal taxes.
Can Danes get Paraguay residency easily?
Yes. Danish citizens enter Paraguay visa-free and can apply for permanent residency immediately. The process takes 4-6 weeks with straightforward documentation and no language requirements.
Explore More Resources
Everything you need to make an informed decision about Paraguay residency
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Last reviewed: February 2026