Paraguay vs South Africa
Tax Residency Comparison
Paraguay taxes foreign income at 0% through its territorial system, while South Africa taxes residents at up to 45%. South Africans 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 | 🇿🇦 South Africa |
|---|---|---|
| Foreign Income Tax | 0% | up to 45% |
| Capital Gains Tax | 8% | up to 18% |
| Corporate Tax | 10% | 27% |
| 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 South Africans Choose Paraguay
Save $45,000 - $185,000+/Year
The average south africans moving to Paraguay saves $45,000 - $185,000+ annually by eliminating up to 45% taxes on foreign-sourced income.
Territorial Tax System
Unlike South Africa's worldwide taxation, Paraguay only taxes income generated within its borders. Foreign income is generally exempt.
Location Freedom
While South Africa 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 South Africa Tax Problem
High income tax rates
Exchange controls on emigration
Tax clearance requirements
Rand volatility
Important: Leaving South Africa
South Africa has complex exit tax and exchange controls. Paraguay offers clean break with proper planning.
Our team includes specialists familiar with South Africa tax law who can help you navigate the transition properly and legally.
Who Should Consider Paraguay Over South Africa?
Remote Workers
Keep 100% of your foreign-earned income instead of losing up to 45% to taxes.
Entrepreneurs
Build your business without the South Africa tax burden holding you back.
Investors
Optimize capital gains with Paraguay's favorable 8% rate vs up to 18%.
Retirees
Stretch your pension and investments further with minimal tax obligations.
Frequently Asked Questions
Is Paraguay better than South Africa for taxes?
For foreign income and financial freedom, Paraguay is significantly better. South Africa charges up to 45% income tax with strict exchange controls. Paraguay has 0% foreign income tax, no exchange controls, and free use of US dollars.
What's the tax difference between Paraguay and South Africa?
South Africa taxes income at up to 45%, capital gains at up to 18%, and has strict exchange controls on emigration. Paraguay taxes only local income at 10%, has zero tax on foreign income, no capital controls, and allows free currency movement.
Can South Africans get Paraguay residency easily?
Yes. South African citizens enter Paraguay visa-free and can apply for permanent residency directly. The process takes 4-6 weeks, though South Africans should also plan for the separate financial emigration process with SARS.
Explore More Resources
Everything you need to make an informed decision about Paraguay residency
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Last reviewed: February 2026