Paraguay vs Sweden
Tax Residency Comparison
Paraguay taxes foreign income at 0% through its territorial system, while Sweden taxes residents at up to 52%. Swedes switching to Paraguay residency save $65,000 - $280,000+ 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 | 🇸🇪 Sweden |
|---|---|---|
| Foreign Income Tax | 0% | up to 52% |
| Capital Gains Tax | 8% | 30% |
| Corporate Tax | 10% | 20.6% |
| 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 Swedes Choose Paraguay
Save $65,000 - $280,000+/Year
The average swedes moving to Paraguay saves $65,000 - $280,000+ annually by eliminating up to 52% taxes on foreign-sourced income.
Territorial Tax System
Unlike Sweden's worldwide taxation, Paraguay only taxes income generated within its borders. Foreign income is generally exempt.
Location Freedom
While Sweden 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 Sweden Tax Problem
Among highest total tax burden globally
Municipal tax on top of national tax
Social contributions very high
Wealth tax abolished but high income taxes remain
Important: Leaving Sweden
Sweden has clear non-residency rules. Paraguay residency provides documented proof of foreign tax residence.
Our team includes specialists familiar with Sweden tax law who can help you navigate the transition properly and legally.
Who Should Consider Paraguay Over Sweden?
Remote Workers
Keep 100% of your foreign-earned income instead of losing up to 52% to taxes.
Entrepreneurs
Build your business without the Sweden tax burden holding you back.
Investors
Optimize capital gains with Paraguay's favorable 8% rate vs 30%.
Retirees
Stretch your pension and investments further with minimal tax obligations.
Frequently Asked Questions
Is Paraguay better than Sweden for taxes?
For foreign income, Paraguay is dramatically better with 0% tax versus Sweden's combined rate of up to 52%. Paraguay also has no capital gains tax on foreign investments, compared to Sweden's flat 30% rate.
What's the tax difference between Paraguay and Sweden?
Sweden taxes income at up to 52% (national plus municipal), capital gains at 30%, and has high employer social contributions. Paraguay taxes only local income at 10% with no tax on foreign income and no mandatory social contributions for non-workers.
Can Swedes get Paraguay residency easily?
Yes. Swedish citizens enter Paraguay visa-free and can apply for permanent residency directly. The process takes 4-6 weeks with standard documentation requirements and no language test.
Explore More Resources
Everything you need to make an informed decision about Paraguay residency
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Last reviewed: February 2026