Paraguay vs Japan
Tax Residency Comparison
Paraguay taxes foreign income at 0% through its territorial system, while Japan taxes residents at up to 55%. Japanese switching to Paraguay residency save $70,000 - $320,000+ 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 | 🇯🇵 Japan |
|---|---|---|
| Foreign Income Tax | 0% | up to 55% |
| Capital Gains Tax | 8% | 20% |
| Corporate Tax | 10% | 30.62% |
| Inheritance/Estate Tax | None | 10-55% |
| 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 Japanese Choose Paraguay
Save $70,000 - $320,000+/Year
The average japanese moving to Paraguay saves $70,000 - $320,000+ annually by eliminating up to 55% taxes on foreign-sourced income.
Territorial Tax System
Unlike Japan's worldwide taxation, Paraguay only taxes income generated within its borders. Foreign income is generally exempt.
Location Freedom
While Japan 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 Japan Tax Problem
Extremely high combined national and local taxes
Complex inheritance tax up to 55%
Exit tax on assets over ¥100M
Worldwide taxation for residents
Important: Leaving Japan
Japan has exit tax on significant assets. Paraguay residency helps establish non-residency with proper planning.
Our team includes specialists familiar with Japan tax law who can help you navigate the transition properly and legally.
Who Should Consider Paraguay Over Japan?
Remote Workers
Keep 100% of your foreign-earned income instead of losing up to 55% to taxes.
Entrepreneurs
Build your business without the Japan tax burden holding you back.
Investors
Optimize capital gains with Paraguay's favorable 8% rate vs 20%.
Retirees
Stretch your pension and investments further with minimal tax obligations.
Frequently Asked Questions
Is Paraguay better than Japan for taxes?
For foreign income, Paraguay is vastly superior with 0% tax versus Japan's combined rate of up to 55%. Paraguay also has no inheritance tax (Japan charges up to 55%) and no exit tax on future departures.
What's the tax difference between Paraguay and Japan?
Japan taxes income at up to 55% combined, capital gains at 20%, inheritance at up to 55%, and has exit tax on assets over 100M yen. Paraguay taxes only local income at 10%, with zero foreign income tax and no inheritance or exit tax.
Can Japanese get Paraguay residency easily?
Yes. Japanese citizens enter Paraguay visa-free and can apply for permanent residency directly. The process takes 4-6 weeks and Japan has historically had strong diplomatic relations with Paraguay.
Explore More Resources
Everything you need to make an informed decision about Paraguay residency
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Last reviewed: February 2026