Paraguay vs Romania
Tax Residency Comparison
Paraguay taxes foreign income at 0% through its territorial system, while Romania taxes residents at 10% flat. Romanians 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 | 🇷🇴 Romania |
|---|---|---|
| Foreign Income Tax | 0% | 10% flat |
| Capital Gains Tax | 8% | 10% |
| Corporate Tax | 10% | 16% |
| 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 Romanians Choose Paraguay
Save $10,000 - $50,000+/Year
The average romanians moving to Paraguay saves $10,000 - $50,000+ annually by eliminating 10% flat taxes on foreign-sourced income.
Territorial Tax System
Unlike Romania's worldwide taxation, Paraguay only taxes income generated within its borders. Foreign income is generally exempt.
Location Freedom
While Romania 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 Romania Tax Problem
Social contributions at 35%+
Microenterprise tax changes
Bureaucracy challenges
Infrastructure limitations
Important: Leaving Romania
Romania has low headline rates but high social charges. Paraguay offers simpler zero foreign income tax.
Our team includes specialists familiar with Romania tax law who can help you navigate the transition properly and legally.
Who Should Consider Paraguay Over Romania?
Remote Workers
Keep 100% of your foreign-earned income instead of losing 10% flat to taxes.
Entrepreneurs
Build your business without the Romania tax burden holding you back.
Investors
Optimize capital gains with Paraguay's favorable 8% rate vs 10%.
Retirees
Stretch your pension and investments further with minimal tax obligations.
Frequently Asked Questions
Is Paraguay better than Romania for taxes?
For foreign income, Paraguay charges 0% versus Romania's 10% plus 35%+ social contributions. Paraguay eliminates Romania's heavy social security burden and provides a more stable regulatory environment for entrepreneurs.
What's the tax difference between Paraguay and Romania?
Romania taxes income at 10% flat but has social contributions exceeding 35% and frequent tax changes. Paraguay taxes only local income at 10%, has zero tax on foreign income, no mandatory social contributions for non-workers, and stable tax policy.
Can Romanians get Paraguay residency easily?
Yes. Romanian citizens enter Paraguay visa-free and can apply for permanent residency directly. The process takes 4-6 weeks with standard documentation and no language requirements.
Explore More Resources
Everything you need to make an informed decision about Paraguay residency
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Last reviewed: February 2026