Expert guidance

Frequently Asked Questions

Get answers to the most common questions about Paraguay residency and tax benefits

Residency Process Questions

Standard Paraguay residency packages typically take about 180 days from application submission to card delivery. Investor visa clients who qualify can use an express path that completes in roughly 30 days.

The timeline breaks down as:

  • 60-90 days: Initial residency documentation and local registrations
  • 120-150 days: Permanent residency approval (standard path)
  • 180 days: Permanent residency card delivery (standard path)
  • 30 days: Investor visa express option from submission to card

No, you do not need to live in Paraguay full-time. Paraguay has one of the most flexible residency programs in the world.

Physical presence requirements:

  • Initial visit: 1-2 weeks for application and biometrics
  • Ongoing: Visit once every 3 years minimum to maintain residency
  • Duration: No minimum stay requirement per visit

You can maintain tax residency while living anywhere in the world, as long as you visit Paraguay periodically.

Required documents include:

  • Passport: Valid for at least 6 months
  • Birth Certificate: Apostilled and translated
  • FBI Background Check: Apostilled (or equivalent from your country)
  • Medical Certificate: Health clearance from approved physician
  • Bank Statement: Showing $5,000 USD minimum deposit
  • Marriage Certificate: If applying with spouse (apostilled)

We handle all apostille, translation, and submission processes for our clients.

Yes, you can include your family members in your Paraguay residency application:

  • Spouse: Included with marriage certificate
  • Children under 18: Included with birth certificates
  • Adult children: Can apply independently or as dependents if studying
  • Additional deposit: $2,000 USD per additional family member

All family members receive the same tax benefits and residency rights as the main applicant.

Rejection is extremely rare when working with our experienced team. We maintain a 99% approval rate due to:

  • Thorough document review before submission
  • Direct relationships with immigration officials
  • Pre-qualification screening process

In the unlikely event of rejection:

  • We identify and resolve the issue
  • Resubmit the application at no additional cost
  • Provide full support until approval is obtained

Tax Benefits Questions

Paraguay taxes income generated within the country and generally exempts foreign-sourced income under its territorial system. You still need proper planning to align with both Paraguayan rules and your home country’s exit/foreign asset rules.

Foreign income that is tax-free includes:

  • Remote work and consulting income earned abroad
  • Online business revenue sourced outside Paraguay
  • Investment gains and dividends earned abroad (subject to your home-country rules)
  • Rental income from foreign properties
  • Royalties and licensing fees from non-Paraguayan sources
  • Cryptocurrency gains realized through foreign exchanges

We tailor guidance so your structure remains compliant locally and internationally while reducing your overall tax burden.

Tax benefits begin when you obtain your initial residency documentation, typically within 60-90 days on the standard path.

Timeline for tax benefits:

  • Day 1: Application submitted
  • 60-90 days: Initial residency documentation received - tax benefits active
  • 180 days: Permanent residency card received - benefits continue indefinitely

You can start structuring your income for tax optimization as soon as you receive temporary residency status.

Yes, but it's simple. Paraguay residents must file annual tax returns, but the process is straightforward:

  • Due date: March 31st each year
  • Foreign income: Declared as exempt under the territorial system
  • Paraguay income: Subject to local tax rates if applicable
  • Cost: Typically $200-500 USD with a local accountant

We provide referrals to qualified Paraguay tax professionals who specialize in expat returns.

Documentation to prove foreign source includes:

  • Client contracts: Showing work performed outside Paraguay
  • Bank records: Demonstrating foreign source of funds
  • Business registration: In foreign jurisdictions (if applicable)
  • Employment letters: From foreign employers
  • Invoice records: For consulting and freelance work

The key is that economic activity generating the income must occur outside Paraguay. Remote work for foreign clients/employers clearly qualifies.

You may still owe taxes in other jurisdictions:

  • Previous tax residence: Until you properly exit their tax system
  • US citizens: Must still file US returns (but may qualify for Foreign Earned Income Exclusion)
  • Source country taxes: Some countries tax at source regardless of residency

Paraguay's double taxation treaties help minimize or eliminate double taxation. We recommend consulting with international tax specialists for complex situations.

Costs & Investment Questions

The minimum bank deposit is $5,000 USD for the standard permanent residency process.

Investment options:

  • Bank deposit: $5,000 USD (can be withdrawn after residency approval)
  • Real estate: Any amount - property purchase qualifies
  • Business investment: Starting a local business qualifies
  • Family members: Additional $2,000 USD per person

This is one of the lowest investment requirements worldwide for permanent residency with tax benefits.

Total costs typically range from $8,000-12,000 USD including:

  • Government fees: $1,500-2,000 USD
  • Legal services: $3,500-5,000 USD
  • Document processing: $500-800 USD (apostilles, translations)
  • Required deposit: $5,000 USD (recoverable)
  • Travel costs: Varies by location

Our comprehensive packages include all government fees, legal representation, and document processing for transparent pricing.

Yes, the $5,000 USD deposit can be withdrawn after your permanent residency is approved.

Deposit details:

  • Required period: Must remain in bank during application process
  • Withdrawal timing: After permanent residency card is issued
  • Account control: You maintain full control of your bank account
  • Interest earned: Any interest earned is yours to keep

Many clients choose to maintain the account for banking convenience, but withdrawal is permitted once residency is secured.

Ongoing costs are minimal:

  • Card renewal: $100-200 USD every 10 years
  • Annual tax filing: $200-500 USD (if using an accountant)
  • Periodic visits: Travel costs every 1-3 years
  • No minimum income: No ongoing investment requirements
  • No wealth reporting: No annual wealth tax filings

Paraguay residency is designed to be low-maintenance and cost-effective long-term.

Still Have Questions?

Our Paraguay residency experts are here to answer your specific questions and guide you through the process.

Save up to 100% on foreign income taxes with Paraguay residency
Chat with us
Free Paraguay Residency Guide
FREE GUIDE

Wait! Don't Leave Empty-Handed

Get our free 2025 Paraguay Residency Guide and discover how to legally pay 0% tax on foreign income.

  • Step-by-step residency process
  • Tax optimization strategies
  • Cost breakdown & timeline
  • Common mistakes to avoid

No spam. Unsubscribe anytime. We respect your privacy.