Icelanders, Stop Paying up to 46% in Taxes
Paraguay charges 0% tax on foreign income through its territorial tax system, while Iceland taxes residents at rates of up to 46%. Icelanders who obtain Paraguay residency can legally eliminate foreign income taxes and save $40,000 - $160,000+ per year, with a straightforward 90-day process requiring only a $5,000 bank deposit.
The Iceland Tax Problem
As a Iceland tax resident, you're facing some of the highest tax rates in the world:
High income tax rates
Small market limits opportunities
High cost of living
Currency volatility risk
The Paraguay Solution for Icelanders
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: Iceland Exit Considerations
Iceland has relatively straightforward non-residency rules. Paraguay offers an affordable alternative.
Our team includes specialists familiar with Iceland tax law who can help you navigate the transition properly.
How It Works for Icelanders
- 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 Iceland.
- 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 Icelanders save with Paraguay residency?
Icelanders can save $40,000 to $160,000+ annually. With Iceland's income tax up to 46%, 22% capital gains tax, and extremely high cost of living, Paraguay's territorial tax system and low costs offer substantial relief.
Do Icelanders need to give up their citizenship?
No. Icelanders can hold Paraguay permanent residency while retaining their Icelandic citizenship. Iceland allows dual citizenship and foreign residency without restrictions.
What is the process for Icelanders to get Paraguay residency?
Icelandic citizens can obtain permanent residency in Paraguay within 4-6 weeks. The process requires an apostilled sakavottord, proof of income, a bank deposit of approximately $5,500, and standard documentation.
Is there an exit tax when leaving Iceland?
Iceland does not impose a formal exit tax. However, you must properly deregister from the National Registry and settle any outstanding tax obligations. The process is relatively straightforward compared to most Nordic countries.
How long do Icelanders need to stay in Paraguay?
Paraguay has no minimum stay requirement for permanent residents. You only need to visit once every 3 years to maintain residency, providing complete flexibility for Icelanders who want global mobility.
Complete Your Paraguay Journey
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Everything you need to make an informed decision about Paraguay residency
Ready to Save $40,000 - $160,000+/Year?
Join other icelanders who have legally reduced their tax burden with Paraguay residency.
Last reviewed: February 2026