Paraguay vs Portugal
Tax Residency Comparison
Paraguay taxes foreign income at 0% through its territorial system, while Portugal taxes residents at up to 48%. Portuguese switching to Paraguay residency save $45,000 - $185,000+ 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 | 🇵🇹 Portugal |
|---|---|---|
| Foreign Income Tax | 0% | up to 48% |
| Capital Gains Tax | 8% | 28% |
| Corporate Tax | 10% | 21% |
| 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 Portuguese Choose Paraguay
Save $45,000 - $185,000+/Year
The average portuguese moving to Paraguay saves $45,000 - $185,000+ annually by eliminating up to 48% taxes on foreign-sourced income.
Territorial Tax System
Unlike Portugal's worldwide taxation, Paraguay only taxes income generated within its borders. Foreign income is generally exempt.
Location Freedom
While Portugal 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 Portugal Tax Problem
NHR regime ending for new applicants
High standard tax rates
Social contributions significant
Rising cost of living in Lisbon
Important: Leaving Portugal
Portugal NHR is ending. Paraguay offers a permanent territorial tax solution without expiration.
Our team includes specialists familiar with Portugal tax law who can help you navigate the transition properly and legally.
Who Should Consider Paraguay Over Portugal?
Remote Workers
Keep 100% of your foreign-earned income instead of losing up to 48% to taxes.
Entrepreneurs
Build your business without the Portugal tax burden holding you back.
Investors
Optimize capital gains with Paraguay's favorable 8% rate vs 28%.
Retirees
Stretch your pension and investments further with minimal tax obligations.
Frequently Asked Questions
Is Paraguay better than Portugal for taxes?
With Portugal's NHR regime ending, Paraguay offers a permanent alternative. Paraguay charges 0% on foreign income with no expiration date, versus Portugal's standard rates of up to 48% and 28% capital gains tax.
What's the tax difference between Paraguay and Portugal?
Portugal taxes income at up to 48%, capital gains at 28%, and social contributions are significant. Paraguay taxes only local income at 10%, with zero tax on foreign income, no capital gains tax on foreign investments, and minimal social charges.
Can Portuguese get Paraguay residency easily?
Yes. Portuguese citizens enter Paraguay visa-free and can apply for permanent residency directly. The shared Latin culture and linguistic similarities make Paraguay an especially natural fit for Portuguese speakers.
Explore More Resources
Everything you need to make an informed decision about Paraguay residency
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Last reviewed: February 2026