Paraguay vs India
Tax Residency Comparison
Paraguay taxes foreign income at 0% through its territorial system, while India taxes residents at up to 42.7%. Indians switching to Paraguay residency save $40,000 - $170,000+ 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 | 🇮🇳 India |
|---|---|---|
| Foreign Income Tax | 0% | up to 42.7% |
| Capital Gains Tax | 8% | up to 20% |
| Corporate Tax | 10% | 25.17% |
| 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 Indians Choose Paraguay
Save $40,000 - $170,000+/Year
The average indians moving to Paraguay saves $40,000 - $170,000+ annually by eliminating up to 42.7% taxes on foreign-sourced income.
Territorial Tax System
Unlike India's worldwide taxation, Paraguay only taxes income generated within its borders. Foreign income is generally exempt.
Location Freedom
While India 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 India Tax Problem
High surcharges on income tax
TCS on foreign remittances
Complex NRI rules
Liberalized Remittance Scheme limits
Important: Leaving India
India has complex residency rules. Paraguay residency helps establish clear NRI status for tax purposes.
Our team includes specialists familiar with India tax law who can help you navigate the transition properly and legally.
Who Should Consider Paraguay Over India?
Remote Workers
Keep 100% of your foreign-earned income instead of losing up to 42.7% to taxes.
Entrepreneurs
Build your business without the India tax burden holding you back.
Investors
Optimize capital gains with Paraguay's favorable 8% rate vs up to 20%.
Retirees
Stretch your pension and investments further with minimal tax obligations.
Frequently Asked Questions
Is Paraguay better than India for taxes?
For foreign income, Paraguay charges 0% versus India's 42.7% top rate with surcharges. Paraguay also eliminates TCS on foreign remittances, the Liberalized Remittance Scheme limits, and complex NRI reporting requirements.
What's the tax difference between Paraguay and India?
India taxes worldwide income at up to 42.7% with surcharges, capital gains at up to 20%, and imposes TCS on foreign remittances. Paraguay taxes only local income at 10%, with zero tax on foreign income, no capital controls, and simple compliance.
Can Indians get Paraguay residency easily?
Yes. Indian citizens enter Paraguay visa-free and can apply directly for permanent residency. The process takes 4-6 weeks with standard documentation, and Paraguay residency helps establish clear NRI status for Indian tax purposes.
Explore More Resources
Everything you need to make an informed decision about Paraguay residency
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Last reviewed: February 2026