Paraguay vs New Zealand
Tax Residency Comparison
Paraguay taxes foreign income at 0% through its territorial system, while New Zealand taxes residents at up to 39%. New Zealanders switching to Paraguay residency save $35,000 - $140,000+ 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 | 🇳🇿 New Zealand |
|---|---|---|
| Foreign Income Tax | 0% | up to 39% |
| Capital Gains Tax | 8% | 0% (generally) |
| Corporate Tax | 10% | 28% |
| 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 New Zealanders Choose Paraguay
Save $35,000 - $140,000+/Year
The average new zealanders moving to Paraguay saves $35,000 - $140,000+ annually by eliminating up to 39% taxes on foreign-sourced income.
Territorial Tax System
Unlike New Zealand's worldwide taxation, Paraguay only taxes income generated within its borders. Foreign income is generally exempt.
Location Freedom
While New Zealand 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 New Zealand Tax Problem
High top marginal rate increased recently
FIF rules on foreign investments
High cost of living
Limited business opportunities domestically
Important: Leaving New Zealand
New Zealand has favorable capital gains but high income tax. Paraguay offers zero foreign income tax.
Our team includes specialists familiar with New Zealand tax law who can help you navigate the transition properly and legally.
Who Should Consider Paraguay Over New Zealand?
Remote Workers
Keep 100% of your foreign-earned income instead of losing up to 39% to taxes.
Entrepreneurs
Build your business without the New Zealand tax burden holding you back.
Investors
Optimize capital gains with Paraguay's favorable 8% rate vs 0% (generally).
Retirees
Stretch your pension and investments further with minimal tax obligations.
Frequently Asked Questions
Is Paraguay better than New Zealand for taxes?
For income tax, Paraguay is significantly better with 0% on foreign income versus NZ's 39% top rate. Both countries have favorable capital gains treatment, but Paraguay eliminates NZ's FIF rules on foreign investment portfolios.
What's the tax difference between Paraguay and New Zealand?
New Zealand taxes income at up to 39%, applies FIF rules to foreign investments, and has a 28% corporate rate. Paraguay taxes only local income at 10%, has zero tax on foreign income, no FIF equivalent, and a 10% corporate rate.
Can New Zealanders get Paraguay residency easily?
Yes. New Zealand citizens enter Paraguay visa-free and can apply directly for permanent residency. The process takes 4-6 weeks with standard documentation requirements and no language test.
Explore More Resources
Everything you need to make an informed decision about Paraguay residency
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Last reviewed: February 2026