Paraguay vs Finland
Tax Residency Comparison
Paraguay taxes foreign income at 0% through its territorial system, while Finland taxes residents at up to 57%. Finns switching to Paraguay residency save $65,000 - $290,000+ 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 | 🇫🇮 Finland |
|---|---|---|
| Foreign Income Tax | 0% | up to 57% |
| Capital Gains Tax | 8% | 30-34% |
| Corporate Tax | 10% | 20% |
| Inheritance/Estate Tax | None | 7-33% |
| 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 Finns Choose Paraguay
Save $65,000 - $290,000+/Year
The average finns moving to Paraguay saves $65,000 - $290,000+ annually by eliminating up to 57% taxes on foreign-sourced income.
Territorial Tax System
Unlike Finland's worldwide taxation, Paraguay only taxes income generated within its borders. Foreign income is generally exempt.
Location Freedom
While Finland 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 Finland Tax Problem
Very high marginal tax rates
Capital income taxed heavily
Social contributions on top
Municipal tax varies
Important: Leaving Finland
Finland has high exit taxation awareness. Paraguay provides documented residency to establish non-Finnish tax status.
Our team includes specialists familiar with Finland tax law who can help you navigate the transition properly and legally.
Who Should Consider Paraguay Over Finland?
Remote Workers
Keep 100% of your foreign-earned income instead of losing up to 57% to taxes.
Entrepreneurs
Build your business without the Finland tax burden holding you back.
Investors
Optimize capital gains with Paraguay's favorable 8% rate vs 30-34%.
Retirees
Stretch your pension and investments further with minimal tax obligations.
Frequently Asked Questions
Is Paraguay better than Finland for taxes?
For foreign income, Paraguay is dramatically better with 0% tax versus Finland's combined rate of up to 57%. Paraguay also has no inheritance tax, compared to Finland's 7-33%, and no capital income tax on foreign investments.
What's the tax difference between Paraguay and Finland?
Finland taxes earned income at up to 57%, capital income at 30-34%, and inheritance at 7-33%. Paraguay taxes only local income at 10%, with zero tax on foreign income, no capital gains tax on foreign assets, and no inheritance tax.
Can Finns get Paraguay residency easily?
Yes. Finnish citizens enter Paraguay visa-free and can apply directly for permanent residency. The process takes 4-6 weeks and requires standard documentation without language or investment tests.
Explore More Resources
Everything you need to make an informed decision about Paraguay residency
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Last reviewed: February 2026