Paraguay vs South Korea
Tax Residency Comparison
Paraguay taxes foreign income at 0% through its territorial system, while South Korea taxes residents at up to 49.5%. South Koreans switching to Paraguay residency save $55,000 - $220,000+ 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 Korea |
|---|---|---|
| Foreign Income Tax | 0% | up to 49.5% |
| Capital Gains Tax | 8% | up to 27.5% |
| Corporate Tax | 10% | 24% |
| Inheritance/Estate Tax | None | 10-50% |
| 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 Koreans Choose Paraguay
Save $55,000 - $220,000+/Year
The average south koreans moving to Paraguay saves $55,000 - $220,000+ annually by eliminating up to 49.5% taxes on foreign-sourced income.
Territorial Tax System
Unlike South Korea's worldwide taxation, Paraguay only taxes income generated within its borders. Foreign income is generally exempt.
Location Freedom
While South Korea 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 Korea Tax Problem
High income tax rates
National Health Insurance mandatory
Exit procedures complex
Crypto taxation increasing
Important: Leaving South Korea
South Korea has strict residency rules. Paraguay provides clear documentation of foreign residence.
Our team includes specialists familiar with South Korea tax law who can help you navigate the transition properly and legally.
Who Should Consider Paraguay Over South Korea?
Remote Workers
Keep 100% of your foreign-earned income instead of losing up to 49.5% to taxes.
Entrepreneurs
Build your business without the South Korea tax burden holding you back.
Investors
Optimize capital gains with Paraguay's favorable 8% rate vs up to 27.5%.
Retirees
Stretch your pension and investments further with minimal tax obligations.
Frequently Asked Questions
Is Paraguay better than South Korea for taxes?
For foreign income, Paraguay is significantly better with 0% tax versus Korea's 49.5% top rate. Paraguay also has no inheritance tax (Korea charges up to 50%) and no crypto-specific taxation.
What's the tax difference between Paraguay and South Korea?
South Korea taxes income at up to 49.5%, capital gains at up to 27.5%, and inheritance at up to 50%. Paraguay taxes only local income at 10%, with zero tax on foreign income, no capital gains tax on foreign assets, and no inheritance tax.
Can South Koreans get Paraguay residency easily?
Yes. South Korean citizens enter Paraguay visa-free and can apply for permanent residency directly. The process takes 4-6 weeks with standard documentation requirements.
Explore More Resources
Everything you need to make an informed decision about Paraguay residency
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Last reviewed: February 2026