Paraguay vs Hong Kong
Tax Residency Comparison
Paraguay taxes foreign income at 0% through its territorial system, while Hong Kong taxes residents at up to 17%. Hong Kongers switching to Paraguay residency save $10,000 - $50,000+ 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 | 🇭🇰 Hong Kong |
|---|---|---|
| Foreign Income Tax | 0% | up to 17% |
| Capital Gains Tax | 8% | 0% |
| Corporate Tax | 10% | 16.5% |
| 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 Hong Kongers Choose Paraguay
Save $10,000 - $50,000+/Year
The average hong kongers moving to Paraguay saves $10,000 - $50,000+ annually by eliminating up to 17% taxes on foreign-sourced income.
Territorial Tax System
Unlike Hong Kong's worldwide taxation, Paraguay only taxes income generated within its borders. Foreign income is generally exempt.
Location Freedom
While Hong Kong 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 Hong Kong Tax Problem
Territorial system changing scope
Political uncertainty
Extremely high property costs
Quality of life concerns
Important: Leaving Hong Kong
Hong Kong has low taxes but uncertainty is growing. Paraguay offers stability and similar territorial benefits.
Our team includes specialists familiar with Hong Kong tax law who can help you navigate the transition properly and legally.
Who Should Consider Paraguay Over Hong Kong?
Remote Workers
Keep 100% of your foreign-earned income instead of losing up to 17% to taxes.
Entrepreneurs
Build your business without the Hong Kong tax burden holding you back.
Investors
Optimize capital gains with Paraguay's favorable 8% rate vs 0%.
Retirees
Stretch your pension and investments further with minimal tax obligations.
Frequently Asked Questions
Is Paraguay better than Hong Kong for taxes?
Both have territorial tax systems, but Paraguay's top rate of 10% is lower than Hong Kong's 17%. The main advantage is Paraguay's cost of living, which is 70-80% lower, and the political stability it offers as a residency diversification.
What's the tax difference between Paraguay and Hong Kong?
Hong Kong taxes employment income at up to 17% and corporate profits at 16.5%. Paraguay taxes local income at 10% and corporate income at 10%. Both have territorial systems with no tax on foreign income.
Can Hong Kongers get Paraguay residency easily?
Yes. Hong Kong passport holders enter Paraguay visa-free and can apply for permanent residency directly. The process takes 4-6 weeks with standard documentation requirements.
Explore More Resources
Everything you need to make an informed decision about Paraguay residency
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Last reviewed: February 2026