Why residence in Paraguay ?

Why choose residency in Paraguay?

In recent years, Paraguay has become one of the most attractive destinations for those seeking a better life—freer, more affordable, and more sustainable.
More and more entrepreneurs, professionals, retirees, and families are choosing to relocate here to build a more stable and convenient future.

🌎 A surprisingly high quality of life

Paraguay offers a calmer lifestyle, far from the stress and pressure typical of many European countries.
Cities are livable, the climate is pleasant year-round, and people are welcoming and friendly.

Here, it is possible to live well—with more time for yourself and your family—without giving up modern comforts.

💰 Very low cost of living

One of Paraguay’s greatest advantages is its extremely low cost of living.
Rent, food, services, transportation, and labor cost a fraction of what they do in Europe.

This allows you to:

• live better with the same income

• drastically reduce monthly expenses

• increase your purchasing power

📉 Simple and advantageous taxation

Paraguay’s tax system is among the simplest and lightest in the world.
Taxes are low and clear, making it ideal for those who want to:

• optimize their tax situation

• start a business or invest

• protect their assets

For this reason, Paraguay represents a strategic choice for international entrepreneurs and investors.

🛂 Accessible and fast residency

Obtaining temporary or permanent residency in Paraguay is much easier than in many other countries.
With residency, you can:

• live legally in the country

• obtain the Paraguayan Cédula (ID card)

• apply for the RUC tax number to conduct economic activities

• open bank accounts and start investments

With the right professional support, the process becomes fast, clear, and stress-free.

🔐 A safe and stable country

Contrary to many misconceptions, Paraguay is a safe and stable country.
Crime levels are relatively contained compared to many Western contexts, and daily life is generally peaceful.

Economic and political stability also make Paraguay a reliable long-term choice.

📈 Investment and growth opportunities

Paraguay is a rapidly developing country with promising prospects in sectors such as:

• real estate

• agriculture

• trade

• services

• digital and online businesses

Entering now means positioning yourself in an expanding market with significant growth potential.

🤝 Why rely on us

Moving to a new country is an important decision.
Our goal is to simplify every step of the journey, avoiding mistakes, delays, and unnecessary costs.

We guide you step by step to:

• obtain temporary or permanent residency

• apply for the Cédula and RUC

• receive clear, transparent, and professional support

Paraguay can become your new life opportunity.
We are here to help you turn it into reality.

Why It Is Advantageous to Transfer Your Tax Residency to Paraguay

Paraguay is one of the few countries in the world that combines extremely favorable taxation, bureaucratic simplicity, and a territorial tax system.
For this reason, it has become a strategic destination for those who wish to legally reduce their tax burden, protect their assets, and operate internationally.

📉 Low and Simple Taxation

Paraguay’s tax system is among the lightest in Latin America.

VAT (Value Added Tax)

• Standard rate of 10% (compared to 22% in Italy)

• Applied only to local transactions

• Much simpler administration than European systems

👤 Personal Taxation

Personal income tax is low and progressive, with rates reaching a maximum of 10%.
It is possible to operate using your personal RUC, carry out business activities, and maintain a reduced tax burden.

But the real advantage of Paraguay is another 👇

🌍 Territorial Taxation: The Major Advantage

Paraguay applies the territorial taxation principle.
This means:

• only income generated within Paraguay is taxed

• income produced abroad is not taxed in Paraguay

In practice:

• Foreign income → 0% tax

• Local income → very low taxation

🏢 Corporate Taxation in Paraguay

Paraguayan companies benefit from highly competitive taxation:

• corporate income tax of around 10%

• clear and stable rules

• low operating and compliance costs

An ideal environment for:

• local businesses

• holding companies

• service activities

• international structures

💸 Dividend Taxation

Distributed dividends are subject to low rates and simple mechanisms, often more favorable than in Europe, enabling efficient tax planning for entrepreneurs and investors.

Tax on Distribution of Dividends and Profits (IDU)

• Dividends to Paraguay residents: 8% withholding tax

• Dividends to non-residents: 15% withholding tax

📈 Summary Example

• Corporate profit tax (IRE): 10%

• Dividend withholding for resident shareholder: 8%

• Dividend withholding for non-resident shareholder: 15%

Maximum effective burden for non-residents: approximately 25% total before final receipt.

💻 Practical Examples

Digital Nomad

A digital nomad who is a tax resident in Paraguay and:

• works online

• invoices foreign clients

• receives payments in foreign accounts or platforms

👉 Pays no taxes in Paraguay on this income, as it is not generated within Paraguayan territory.

Result:

• legal tax residency

• 0% taxation on foreign income

Trader with Foreign Financial Accounts

A trader who:

• lives in Paraguay

• operates through foreign brokers

• uses accounts or exchanges outside Paraguay

👉 Trading profits are not taxed in Paraguay, since the activity, accounts, and transactions are all foreign.

This makes Paraguay extremely attractive for traders, investors, and crypto investors.

Structure with a U.S. LLC

Common scenario:

• tax resident in Paraguay

• owner of a U.S. LLC

• invoicing international clients

• receiving payments in U.S. accounts

If the structure is correctly set up:

• the LLC is not taxed in Paraguay

• foreign-source income is not taxed thanks to territorial taxation

• the Paraguayan resident pays no tax on that income

• possible absence of U.S. taxation if the activity is conducted outside the United States

Result:
legal tax residency + international structure + minimal tax burden.

⚖️ Fully Legal and Transparent

Transferring tax residency to Paraguay does not mean tax evasion, but rather:

• legally changing your country of residence

• using a more efficient tax system

• planning your future intelligently

With proper professional support, everything is carried out in full compliance with the law.

🤝 Why Rely on Us

Every tax situation is different.
Our role is to:

• analyze your specific case

• guide you through obtaining residency

• help structure your international tax position correctly

Paraguay is one of the last major tax opportunities available.
We help you seize it in a safe, legal, and fully informed way.

Differences Between Europe and Paraguay

In recent years, many European citizens have been considering moving abroad in search of greater personal freedom, fewer bureaucratic obligations, and more sustainable living costs.
Today, Paraguay represents one of the most attractive destinations in these respects.

⚖️ Regulations and Individual Freedom

In several European countries, regulations are being discussed or introduced that directly affect citizens’ daily lives, such as:

• incentives and progressive obligations toward the use of electric vehicles

• requirements for energy upgrades to buildings, often involving significant costs

• development of traceable digital financial tools that increase control over transactions

In contrast, Paraguay’s regulatory approach is generally more flexible and less intrusive.
The State tends to allow greater decision-making autonomy for citizens, both economically and in lifestyle choices, with fewer mandates and lower regulatory costs.

🏡 Quality of Life and Safety

Paraguay is considered by many expatriates to be a peaceful and welcoming country, with a more relaxed pace of life compared to many large European cities.

In Asunción, some of the most appreciated residential areas include:

• Villa Morra

• Recoleta

• Las Lomas

• Ykua Satí

• the main shopping center districts

These neighborhoods are known for:

• good availability of services, restaurants, and commercial activities

• well-maintained residential environments

• the possibility of walking even in the evening hours with a good perceived level of safety

Naturally, as in any country in the world, it is always advisable to maintain normal personal safety precautions.

🌎 Why Choose Paraguay

An increasing number of foreigners choose Paraguay for:

• accessible residency procedures (temporary and permanent)

• obtaining the Paraguayan Cédula

• opening a RUC tax registration for economic activities

• low cost of living

• a climate favorable to investment and entrepreneurship

• greater personal and fiscal freedom

Our service accompanies you through every stage of the process, making your relocation to Paraguay simple, secure, and transparent.

Tax FAQ – Tax Residency in Paraguay

❓ Is becoming a tax resident in Paraguay legal?

Yes. Transferring your tax residency to Paraguay is fully legal, provided that:

• you obtain legal residency (temporary or permanent)

• you comply with local regulations

• you properly terminate tax residency in your country of origin

This is not tax evasion, but a legitimate change of residency.

❓ How long does it take to become a tax resident in Paraguay?

In general, tax residency is obtained by:

• living permanently in Paraguay

• demonstrating that your center of vital interests is located in the country

Each personal situation is different and must be properly assessed to avoid disputes with the country of origin.

❓ Is it true that in Paraguay taxes are paid only on income produced within the country?

Yes. Paraguay applies a territorial taxation system.
This means that:

• foreign-source income is not taxed

• only income generated within Paraguay is taxed

This is one of the main reasons for the country’s fiscal attractiveness.

❓ Does a digital nomad pay taxes in Paraguay?

It depends on where the income is generated.
If a digital nomad:

• works online

• invoices foreign clients

• receives payments in foreign accounts

👉 they do not pay taxes in Paraguay on that income, as it is considered foreign-source.

❓ Does a trader using foreign brokers pay taxes in Paraguay?

No.
If trading occurs:

• through foreign brokers

• using financial accounts outside Paraguay

👉 profits are not taxed in Paraguay, thanks to the territorial system.

❓ Are cryptocurrencies taxed in Paraguay?

Currently:

• crypto held and traded on foreign platforms

• by tax residents in Paraguay

👉 are not taxed, if the income is considered foreign-source.
Regulations may evolve, so proper tax planning is essential.

❓ How much tax do companies pay in Paraguay?

Paraguayan companies benefit from very competitive taxation:

• corporate income tax: about 10%

• VAT: 10%

• low operating and compliance costs

A particularly favorable environment for doing business.

❓ Are dividends taxed?

Yes, but with much lower rates than in Europe.
Additionally:

• foreign-source dividends

• received by Paraguayan tax residents

👉 are not taxed, due to the territorial system.

❓ Can I live in Paraguay and invoice through a U.S. LLC?

Yes, this is a commonly used structure.
If:

• you are a tax resident in Paraguay

• you own a U.S. LLC

• you invoice foreign clients

👉 foreign income and dividends are not taxed in Paraguay, if the structure is properly set up.

❓ Does Paraguay exchange tax information with Europe?

Paraguay does not participate in the same levels of automatic information exchange adopted by many European countries.
This provides greater financial privacy, always within full legal compliance.

❓ Do I need to close my VAT number or company in my country of origin?

In most cases, yes. Otherwise it is necessary to:

• properly restructure your position

• avoid residual tax ties that could generate disputes

This is one of the most delicate aspects and must be handled professionally.

❓ Is a consultant necessary to transfer tax residency?

It is not mandatory, but strongly recommended.
Mistakes in the process may cause:

• double taxation

• disputes with tax authorities

• legal problems

Relying on professionals reduces risks and saves time and money.

❓ How can we concretely help you?

We support you at every stage:

• obtaining residency in Paraguay

• applying for Cédula and RUC

• full tax and administrative assistance

• coordination with international advisors

👉 You focus on your future. We take care of the rest.