Paraguay vs Spain
Tax Residency Comparison
Paraguay taxes foreign income at 0% through its territorial system, while Spain taxes residents at up to 47%. Spanish switching to Paraguay residency save $50,000 - $200,000+ 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 | 🇪🇸 Spain |
|---|---|---|
| Foreign Income Tax | 0% | up to 47% |
| Capital Gains Tax | 8% | up to 28% |
| Corporate Tax | 10% | 25% |
| Wealth Tax | None | 0.2-3.5% |
| Inheritance/Estate Tax | None | 7.65-34% |
| 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 Spanish Choose Paraguay
Save $50,000 - $200,000+/Year
The average spanish moving to Paraguay saves $50,000 - $200,000+ annually by eliminating up to 47% taxes on foreign-sourced income.
Territorial Tax System
Unlike Spain's worldwide taxation, Paraguay only taxes income generated within its borders. Foreign income is generally exempt.
Location Freedom
While Spain 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 Spain Tax Problem
Beckham Law expiring for new applicants
Wealth tax in most regions
Exit tax on significant holdings
Modelo 720 foreign asset reporting
Important: Leaving Spain
Spain has wealth tax and complex exit rules. Paraguay offers a clean tax residency alternative.
Our team includes specialists familiar with Spain tax law who can help you navigate the transition properly and legally.
Who Should Consider Paraguay Over Spain?
Remote Workers
Keep 100% of your foreign-earned income instead of losing up to 47% to taxes.
Entrepreneurs
Build your business without the Spain tax burden holding you back.
Investors
Optimize capital gains with Paraguay's favorable 8% rate vs up to 28%.
Retirees
Stretch your pension and investments further with minimal tax obligations.
Frequently Asked Questions
Is Paraguay better than Spain for taxes?
For foreign income and wealth, Paraguay is dramatically better. Spain charges up to 47% income tax plus 0.2-3.5% wealth tax on global assets. Paraguay has 0% tax on foreign income, no wealth tax, and no Modelo 720 reporting.
What's the tax difference between Paraguay and Spain?
Spain taxes income at up to 47%, wealth at 0.2-3.5%, inheritance at 7.65-34%, and has complex foreign asset reporting. Paraguay taxes only local income at 10%, with no wealth tax, no inheritance tax, and no foreign asset reporting.
Can Spanish get Paraguay residency easily?
Yes. Spanish citizens enter Paraguay visa-free and can apply directly for permanent residency. The shared language and cultural ties make Paraguay especially accessible, and Spain allows dual citizenship with Paraguay.
Explore More Resources
Everything you need to make an informed decision about Paraguay residency
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Last reviewed: February 2026