Hungarians, Stop Paying 15% flat in Taxes
Paraguay charges 0% tax on foreign income through its territorial tax system, while Hungary taxes residents at rates of 15% flat. Hungarians who obtain Paraguay residency can legally eliminate foreign income taxes and save $15,000 - $60,000+ per year, with a straightforward 90-day process requiring only a $5,000 bank deposit.
The Hungary Tax Problem
As a Hungary tax resident, you're facing some of the highest tax rates in the world:
Social contributions are very high (18.5%)
VAT at 27% (highest in EU)
Economic uncertainty
Currency volatility
The Paraguay Solution for Hungarians
Territorial Tax System
Paraguay only taxes income generated within its borders. Foreign-sourced income is generally tax-exempt.
Fast 90-Day Process
Get your permanent residency in as little as 90 days. No years of waiting like other programs.
Minimal Presence Required
Visit just once every 3 years to maintain residency. Live anywhere in the world.
Low Investment Threshold
Only $5,000 USD bank deposit required. One of the most accessible programs worldwide.
Important: Hungary Exit Considerations
Hungary has low income tax but high social charges. Paraguay offers even simpler structure.
Our team includes specialists familiar with Hungary tax law who can help you navigate the transition properly.
How It Works for Hungarians
- 1
Initial Consultation
We assess your situation and create a personalized tax optimization plan.
- 2
Document Preparation
We handle apostilles, translations, and all paperwork from Hungary.
- 3
Paraguay Visit
Brief 1-2 week visit for biometrics and bank account opening.
- 4
Residency Approved
Receive your permanent residency card. Start saving immediately.
Frequently Asked Questions
How much can Hungarians save with Paraguay residency?
Hungarians can save $15,000 to $60,000+ per year. While Hungary's 15% flat income tax is low, the 18.5% social contributions and 27% VAT erode purchasing power. Paraguay's 0% foreign income tax and 10% VAT provide relief.
Do Hungarians need to give up their citizenship?
No. Hungarians can hold Paraguay permanent residency while keeping their Hungarian passport. Hungary allows dual citizenship and does not restrict foreign residency.
What is the process for Hungarians to get Paraguay residency?
Hungarian citizens can obtain permanent residency in Paraguay within 4-6 weeks. Requirements include an apostilled erkölcsi bizonyitvany, proof of income, a bank deposit of approximately $5,500, and standard personal documents.
Is there an exit tax when leaving Hungary?
Hungary does not impose a formal exit tax on individuals. The process of establishing non-residency is relatively straightforward, requiring deregistration from the Hungarian tax authority and settlement of outstanding obligations.
How long do Hungarians need to stay in Paraguay?
Paraguay has no minimum stay requirement. A visit once every 3 years maintains your permanent residency, providing complete flexibility for Hungarians seeking to optimize their tax situation.
Complete Your Paraguay Journey
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Everything you need to make an informed decision about Paraguay residency
Ready to Save $15,000 - $60,000+/Year?
Join other hungarians who have legally reduced their tax burden with Paraguay residency.
Last reviewed: February 2026