Paraguay vs Switzerland
Tax Residency Comparison
Paraguay taxes foreign income at 0% through its territorial system, while Switzerland taxes residents at up to 40%. Swiss switching to Paraguay residency save $30,000 - $120,000+ 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 | 🇨🇭 Switzerland |
|---|---|---|
| Foreign Income Tax | 0% | up to 40% |
| Capital Gains Tax | 8% | 0% (private) |
| Corporate Tax | 10% | 14-25% |
| Wealth Tax | None | 0.3-1% canton-specific |
| 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 Swiss Choose Paraguay
Save $30,000 - $120,000+/Year
The average swiss moving to Paraguay saves $30,000 - $120,000+ annually by eliminating up to 40% taxes on foreign-sourced income.
Territorial Tax System
Unlike Switzerland's worldwide taxation, Paraguay only taxes income generated within its borders. Foreign income is generally exempt.
Location Freedom
While Switzerland 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 Switzerland Tax Problem
Cantonal taxes vary significantly
High cost of living erodes savings
Wealth tax in most cantons
Complex residency requirements
Important: Leaving Switzerland
Switzerland has favorable tax rules but extremely high living costs. Paraguay offers similar territorial benefits at a fraction of the cost.
Our team includes specialists familiar with Switzerland tax law who can help you navigate the transition properly and legally.
Who Should Consider Paraguay Over Switzerland?
Remote Workers
Keep 100% of your foreign-earned income instead of losing up to 40% to taxes.
Entrepreneurs
Build your business without the Switzerland tax burden holding you back.
Investors
Optimize capital gains with Paraguay's favorable 8% rate vs 0% (private).
Retirees
Stretch your pension and investments further with minimal tax obligations.
Frequently Asked Questions
Is Paraguay better than Switzerland for taxes?
Tax rates are somewhat comparable, but Paraguay has no wealth tax (Switzerland charges 0.3-1% cantonal wealth tax), no mandatory social insurance for non-workers, and a cost of living that is 80-90% lower than Switzerland.
What's the tax difference between Paraguay and Switzerland?
Switzerland taxes income at up to 40% (federal plus cantonal), imposes canton-specific wealth taxes of 0.3-1%, and has high mandatory social insurance. Paraguay taxes only local income at 10% with no wealth tax and no social insurance requirements.
Can Swiss get Paraguay residency easily?
Yes. Swiss citizens enter Paraguay visa-free and can apply directly for permanent residency. The process takes 4-6 weeks with minimal paperwork and no language or investment requirements beyond a small bank deposit.
Explore More Resources
Everything you need to make an informed decision about Paraguay residency
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Last reviewed: February 2026