Paraguay vs Taiwan
Tax Residency Comparison
Paraguay taxes foreign income at 0% through its territorial system, while Taiwan taxes residents at up to 40%. Taiwanese switching to Paraguay residency save $35,000 - $140,000+ 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 | 🇹🇼 Taiwan |
|---|---|---|
| Foreign Income Tax | 0% | up to 40% |
| Capital Gains Tax | 8% | 0% (most cases) |
| Corporate Tax | 10% | 20% |
| 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 |
| Double Tax Treaty | Paraguay has a double tax treaty with Taiwan | |
Why Taiwanese Choose Paraguay
Save $35,000 - $140,000+/Year
The average taiwanese moving to Paraguay saves $35,000 - $140,000+ annually by eliminating up to 40% taxes on foreign-sourced income.
Territorial Tax System
Unlike Taiwan's worldwide taxation, Paraguay only taxes income generated within its borders. Foreign income is generally exempt.
Location Freedom
While Taiwan 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 Taiwan Tax Problem
High income tax rates
Limited international tax treaties
Overseas income taxation expanding
Political uncertainty affects planning
Important: Leaving Taiwan
Taiwan has favorable capital gains but income tax is high. Paraguay offers zero foreign income alternative.
Our team includes specialists familiar with Taiwan tax law who can help you navigate the transition properly and legally.
Who Should Consider Paraguay Over Taiwan?
Remote Workers
Keep 100% of your foreign-earned income instead of losing up to 40% to taxes.
Entrepreneurs
Build your business without the Taiwan tax burden holding you back.
Investors
Optimize capital gains with Paraguay's favorable 8% rate vs 0% (most cases).
Retirees
Stretch your pension and investments further with minimal tax obligations.
Frequently Asked Questions
Is Paraguay better than Taiwan for taxes?
For foreign income, Paraguay charges 0% versus Taiwan's rates up to 40%. Paraguay also has a double tax treaty with Taiwan, providing additional protections. Both countries have favorable capital gains treatment.
What's the tax difference between Paraguay and Taiwan?
Taiwan taxes income at up to 40% and is expanding overseas income taxation via the AMT. Paraguay taxes only local income at 10%, with zero tax on foreign income. The two countries share a double tax treaty for additional benefits.
Can Taiwanese get Paraguay residency easily?
Yes. Taiwanese citizens enter Paraguay visa-free and can apply for permanent residency directly. Paraguay is one of Taiwan's few diplomatic allies, which means excellent bilateral relations and a smooth residency process.
Explore More Resources
Everything you need to make an informed decision about Paraguay residency
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Last reviewed: February 2026