Residence in Paraguay
A complete guide to residency in Paraguay for Italian and European citizens. Paraguay offers one of the fastest and most affordable residency procedures in the world: temporary residency in 2–3 days, a service fee starting from $2,500, no corporate or investment requirements, and a 10% local tax on local income only. On this page: requirements, documents, the 5-step process, costs, taxes, citizenship, and FAQs.
See the infographic on residency in Paraguay (PDF)
Residency and Taxes in Paraguay: The 10-10-10 Rule
Paraguay is among the top destinations for foreigners to reside in Latin America, tied with Panama. There are many reasons for this, but the tax authorities reveal that Paraguay has a very simple tax rule: 10-10-10. This formula means that the three most important taxes—value added tax (VAT), personal income, and business income—are taxed at the same rate: 10%. This rate is the lowest in all of Latin America for all three taxes, with the exception of VAT in Panama (7%).
This characteristic, which has become state policy, is cited by the South American country's leaders as one of the strengths for developing its economy and attracting investment. Furthermore, Paraguay is a tax haven and applies territorial taxation: if you are a foreigner and earn income of any value from abroad, your taxes in Paraguay will be zero and you won't even have to file annual accounts. The first step to living in Paraguay is obtaining temporary residency.
We operate our own law firm in Asunción and coordinate the entire process, from preparing the documents in Italy to collecting the residency carnet.
Why Paraguay is a great place to live
- Territorial taxation — Foreign-source income is not taxed in Paraguay. Local rate is 10%.
- No financial requirements — starting in 2023, a bank deposit or account opening will no longer be required.
- No company required — Unlike Panama, you don't need to open a company to obtain residency.
- Very low cost of living — among the lowest in Latin America with a high quality of life.
- Fast track procedure — temporary residence obtainable on-site within 2–3 working days.
- Path to citizenship — After three years of permanent residency, you can apply for naturalization and a Paraguayan passport. Starting in 2026, permanent citizenship requires physical presence in the country for at least 12 months during the two-year provisional period.
- Dual citizenship for Italians — Paraguay allows dual citizenship exclusively to Italian and Spanish citizens.
Service Details
| Voice | Details |
|---|---|
| Type of service | Temporary residence (valid for 2 years) |
| Village | Paraguay 🇵🇾 |
| Total price | 2,500 USD (all-inclusive for the standard process) |
| What's included | Comprehensive legal assistance, filing with Migrations, certified translations and legalizations, official fees and charges |
| General requirements | Valid passport (+6 months), apostilled birth certificate, apostilled criminal record |
| Specific requirements ITA 🇮🇹 | Cumulative registry certificate (residence, marital status, citizenship) apostilled |
| Document issued | Temporary residence permit valid for 2 years |
| Timings | 2–3 days after delivery of the complete dossier on site |
| Payments accepted | International Wire Transfer, Cryptocurrencies (BTC, USDT, ETH) |
| Next step | At the end of the 2 years → permanent residence request (physical presence in the country for at least 12 months required — Res. DNM 081/2026) |
Paraguayan Tax Residency Certificate
Tax residency in Paraguay is obtained by staying 183+ days in the country over a 12-month period. For crypto traders and stock market investors, it's an excellent place to obtain this document. If you need to establish true tax residency and want to legally pay zero taxes and be subject to territorial taxation, Paraguay is one of the few plausible options, along with Panama. As with all tax residencies worldwide, Paraguay requires a RUC (Tax Identification Number) to apply for the certificate. The RUC is the tax code you can request when applying for residency with us for a fee of $400. Obtaining temporary residency in Paraguay already provides full access to tax residency.
📄 Download Resolution DNM N° 081/2026 (PDF)
Permanent Residency in Paraguay for Italians
The documents required to apply for residency in Paraguay, initially temporary/provisional and then permanent, are simple and easily obtained in your country of residence. Expatriating with residency in Paraguay offers exceptional benefits for Italians, both in terms of tax and bureaucratic procedures once settled in the country.
Transferring residency to Paraguay, unlike Panama, allows you to use your qualifications without taking refresher or conversion exams in almost all cases, and without translating your documents and certifications into Spanish in a good half of cases. Furthermore, the country offers excellent social security, and the extremely low crime rate makes Paraguay a safe place to live, similar to Italy.
Advantages of Residency in Paraguay
The advantages of living in Paraguay are numerous. The Republic of Paraguay is a South American country and a member of Mercosur and Unasur. It borders Argentina to the southeast, south, and southwest, Bolivia to the north, and Brazil to the east. Its territory comprises two distinct regions separated by the Paraguay River: the more populous western region, and the eastern region, which is part of the Chaco.
Paraguay boasts over eight million hectares of fertile land and abundant freshwater from one of the world's largest aquifers, the Guarani. The country is one of the world's leading exporters of soybeans, soybean oil, chia and soybean meal, beef, wheat, stevia, and organic sugar.
Residency in Paraguay: Living in the country of electricity
Paraguay is also the largest US electricity exporter. Its hydroelectric plants (Acaray, Yguazú, Corpus Christi, Itaipú, and Yacyretá) cover 100% of the country's electricity needs, and exports over 90% of the energy generated, mainly to Brazil.
Its mining industry is also growing. Large deposits of titanium, uranium, and gold have been discovered in recent years. Obtaining residency in Paraguay also benefits investors or those interested in exploiting these sectors. Tax residency in Paraguay offers tax advantages down to zero taxable income.
Residency in Paraguay and territorial taxation
As mentioned, Paraguay is one of the countries to move to for lower taxes. Residency in Paraguay is also considered for advanced tax optimization purposes. Like Panama, residency in Paraguay offers the same benefits in terms of offshore tax residency. The country has a favorable tax regime: foreign-source income is not taxable, and local-source income is subject to a 10% tax rate. This is known as territorial taxation.
It also has several free trade zones and incentives and tax exemptions for entrepreneurship in certain economic sectors. Its immigration policy is remarkably liberal, meaning permanent residency in Paraguay can be obtained with low requirements and citizenship can be granted after three years.
With virtually no restrictions on settlement, a low and territorial tax system, and an affordable cost of living, Paraguay allows you to pay zero capital gains taxes once you have obtained residency. The planet's largest aquifer, abundant fertile land at affordable prices, and a constantly growing emerging economy with several untapped markets. With all this, Paraguay is an excellent place to plant several strategic flags.
In Paraguay, foreign investors have the same guarantees, rights, and obligations as any local investor. There are no restricted areas, no discrimination, and no restrictions. The Economic Commission for Latin America and the Caribbean (ECLAC) considers Paraguay to have the best return on investment in South America. It is a member of the Mercosur Free Trade Area, with trade agreements with the Andean Community, Egypt, Israel, Palestine, Mexico, Cuba, India, and the Southern African Customs Union (SACU), among others. It is also negotiating a free trade agreement with the European Union, which could be signed in two years.
How to obtain residency in Paraguay
5 steps to obtain residency in Paraguay
Contact us and book your residence in Paraguay
Book your residency in Paraguay by paying via bank transfer or other means and choosing an arrival date. The fee of USD 2,500 can also be paid in two installments: 60% at the beginning of the process and 40% after obtaining residency, either in cash or in cash.
At the registry office and provincial court, submit your documents
Request a cumulative certificate of residence, birth, citizenship, family status, and an apostilled birth certificate extract from the registry office. At your provincial courthouse, request a general criminal record and a certificate of pending charges. Apostill each for Paraguay and send a PDF copy to our email address to begin the translation process.
We will produce an Interpol Check for you and translate the documents
Once the process begins, we'll translate your documents, which you'll send us via PDF, and request a criminal record check from Interpol. It's like a criminal record, but issued by Interpol. We'll do it for you.
Travel to Paraguay and stay for 6 working days
Arrive in Paraguay and stay for 6 business days. During this time, we'll accompany you to the Immigration Office to take fingerprints, take photos, and fill out the Paraguayan residency application forms. We'll take care of everything. We'll never leave you alone. Everything will be quick and easy.
After 2/3 days you will return to take up your temporary residence
Finally, after 2–3 days, you will return to collect your photo residency. Thanks to the new 2023 law, residency will not be permanent but provisional. After two years, you can apply for permanent residency, provided you have physically lived in Paraguay for at least 12 months during the two-year provisional period (Resolución DNM 081/2026). If you have not met the presence requirement, you will receive an extension of the provisional residence for another two years. After three years of permanent residency, you can obtain Paraguayan citizenship.
How do you live in Paraguay?
Life in Paraguay is very good. Living in Paraguay can be very comfortable for Europeans and North Americans. The country is the most beloved of all by Italians, Germans, Spaniards, and Portuguese due to the undeniable cultural affinities. Many French and Swiss citizens choose Paraguay as their new home after retirement. Many decide to move to Paraguay primarily for the easy opportunity to obtain Paraguayan citizenship and a passport.
But why does Paraguay enjoy such a good reputation? It's essentially due to the country's calm and peaceful society, which makes it the safest place to emigrate in Latin America. The country is a haven of security, but also of real and tangible cultural and historical affinities that allow foreigners to truly adapt to life there effortlessly. Living in Paraguay is easy, affordable, and safe.
Doing business in Paraguay is very advantageous and simple. Europeans don't need to validate their qualifications—an excellent advantage not available in any other country in the region. Opening a company in Paraguay, investing, or doing business and being successful is still much easier than in any other country under consideration.
What documents are required to obtain residency in Paraguay?
The documents required for temporary residence in Paraguay are:
- Cumulative Registry Certificate Apostilled
- Birth Certificate Extract Apostilled
- General type apostilled
- Certificate of Pending Charges Apostilled
- Original passport with more than 6 months of validity
- Italian identity card Original
The guide to residency in Paraguay and the documents to request
One of Paraguay's distinctive features is that it offers the same type of residency to all citizens worldwide, without distinguishing one nation from another through a specific process (unlike Panama, for example). This generic process, while simpler because it no longer requires opening a bank account or company, offers excellent residency. Initially, it is temporary and can be made permanent after two years upon request, provided one has physically lived in the country for at least 12 months (Res. DNM 081/2026).
The key to obtaining residency in Paraguay is to obtain the documents described in the previous section and enter the country with a passport valid for at least 12 months. From this point on, you can rely on our experience in legal and immigration matters, without any doubts or uncertainties about the outcome.
Renewal of Paraguayan temporary residency to permanent after 2 years
To convert your temporary residency in Paraguay (which lasts two years) into permanent residency, you must begin the process between the three months before your temporary carnet expires and no later than 30 days after its expiration. Failure to comply may result in a small fine or the loss of your temporary residency status.
Scenario A — Absence of less than 12 months: if during the 2 years of temporary residence you have not been absent from Paraguay for more than 1 year in total, you are entitled to change the category to permanent residence.
Scenario B — Absence of more than 12 months: if you have been absent for more than 1 year in total, you are not eligible for permanent residence. The DNM will grant you an extension of your temporary residence for another 2 years (Art. 51 Ley 6984/22), during which you will have to respect the same presence requirement in order to then apply for permanent residence.
The renewal application requires submitting the same documents initially provided for temporary residency, in addition to the new Migration Movement Report. With our service, the renewal to permanent residency takes 3 days, compared to the average 80-day process. With the renewal, you will also need to renew your identity card. Upgrading your temporary residency to permanent residency also allows you to meet the requirements for naturalization as a Paraguayan citizen. Remember that permanent residency must also be updated every 10 years.
Practical implications for those who don't intend to live in Paraguay: if your goal is simply to obtain residency without physically moving to the country, you should know that starting in 2026, the path to permanent citizenship and subsequent citizenship will require mandatory physical presence. Those who fail to meet the presence requirement can obtain subsequent extensions of their provisional citizenship, but will never be eligible for permanent citizenship or naturalization. For those seeking residency without a mandatory stay, Panama remains the best option.
Residence in Paraguay SUACE
The SUACE in Paraguay is a government office designed to facilitate foreign investment. It functions as a one-stop shop where investors can open a company, register their business, and begin the residency process, all in one place and with less bureaucracy. It was created to simplify and speed up the arrival of new entrepreneurs in the country. Residency issued through the SUACE is immediately permanent.
The requirements are to open a business that employs at least five Paraguayan citizens, who must be paid salaries and local health insurance like any other formally employed employee. The minimum investment for SUACE is USD 70,000.
SUACE vs. normal residence in Paraguay
If your goal is to obtain residency that leads to citizenship without significant investment and without tax obligations or the need to employ local employees, SUACE is not a good idea. This is because, to obtain naturalization, you must first complete three years of permanent residence in the country.
If you apply for the regular residency program, you must complete two years of provisional residency by physically living in the country for at least 12 months (Res. DNM 081/2026), then apply for permanent residency and wait three years of permanent residency for naturalization, for a minimum total of five years. If you fail to meet the presence requirement during the provisional residency, you will be granted an extension of two more years, extending the process to seven years or more. If you apply for SUACE and complete three consecutive years of permanent residency, you can also apply for naturalization in three years. Therefore, if you are not an entrepreneur and do not want to invest a large amount of money via SUACE, and your goal is only to obtain naturalization with a passport, proceed with joint residency but plan to live in Paraguay.
| Plan | Permit type | Investment | Time for citizenship |
|---|---|---|---|
| Standard residence | Temporary → Permanent | Nobody | 2 years provisional (with 12+ months of physical presence) + 3 years permanent = 5 years minimum. Without presence: 4+ years provisional + 3 years permanent = 7+ years |
| SUACE (Investor) | Permanent direct | USD 70,000 + 5 local employees | 3 years permanent = 3 years |
Guide to Obtaining Paraguayan Citizenship and Passport for Naturalization
Naturalization, or obtaining Paraguayan citizenship, is the process that allows a permanent resident to become a Paraguayan citizen and obtain a passport. The primary requirement is to obtain permanent residency and then live within the country's borders for three years.
It's important to understand that during your three-year period of permanent residency, you cannot leave the country for more than three months per year. If you do, you lose one year for each year you spend more than three months outside the country. Therefore, to qualify for citizenship, you must live in the country for at least nine months per year for three years after obtaining permanent residency.
Unlike Panama, which allows you to live outside the country at any time without even spending a single day in the country and still be eligible for citizenship and a passport, Paraguay requires your presence in the country to be eligible for naturalization.
Setting up a company in Paraguay
There are no restrictions on foreign ownership of local companies in Paraguay. There are also no limits on profit remittances and capital flows abroad. A company in Paraguay must be opened only if you apply for residency as an investor. This is not a mandatory step for Italians.
Opening a company and bank account in Paraguay
The most common business forms among foreign investors who take up residence in Paraguay are:
- Sociedad Anónima (SA) — equivalent to a joint stock company. A minimum of two shareholders is required, either natural persons or legal entities. There is no minimum capital requirement. The capital is divided into bearer or registered shares, which can be freely traded. The appointed directors may be Paraguayan or foreign nationals, but must be residents of Paraguay. It can be incorporated without residency in Paraguay.
- Limited Liability Company (SRL) — similar to an American LLC and an Italian SRL. A minimum of two shareholders and a maximum of 25 with limited liability. There is no minimum capital requirement. The share capital must be fully subscribed and at least 50% paid up. Shares cannot be freely traded. The LLC cannot engage in banking, insurance, capitalization, or savings activities.
- Empresa Individual de Responsabilidad Limitada (EIRL) — equivalent to an Italian single-member LLC. The owner is responsible for the capital contributed, which must be at least PYG 82,000,000 (USD 15,000).
- Branch Office — Foreign companies can open a branch office or representative office domiciled in the country. A minimum allocated capital of USD 25,000 is required. The branch manager must be resident in Paraguay. Incorporation takes 30 to 60 days.
Opening an account in Paraguay
Opening a bank account in Paraguay was necessary to demonstrate financial solvency for USD 5,000 to be deposited in the country in cash, when residency required financial solvency until 2022. Since 2023, with the waiver of the previous law, it is no longer necessary to open a bank account in Paraguay. We still offer a bank account in Paraguay to those who wish to open one for practical and financial reasons.
Documents required to open a bank account in Paraguay
- A bank reference issued by an Italian or foreign bank where you have held an account for at least two years. The reference must be issued in English and only two weeks before your trip.
- Bank statement for the last six months from the same bank that issued the reference
- passport and identity card Original
Is Paraguay a good place to open an offshore bank account?
Paraguay offers good tax residency, and many wonder if it's also a good place to open a bank account. Although Paraguay has excellent requirements for tax residency on paper, it lacks banking security because a bank account in Paraguay is subject to too many clauses and requirements: primarily, obtaining a tax code, having a payslip, and receiving funds primarily locally. When funds are sourced from abroad, they must be substantiated with proof of funds and invoices, as banks are susceptible to high values from abroad.
Due to a nascent banking system that's yet to fully develop, if you're looking for a winning combination of residency and a bank account, we recommend Panama, which boasts a world-renowned offshore financial and banking center. Ultimately, opening an offshore bank account in Paraguay is possible, but subject to specific scrutiny and tax and financial requirements, and the account will initially be in local currency.
Request your residency in Paraguay
Contact us for a personalized consultation on the best procedure for your case.
✉️ Write to us on WhatsAppTo acquire residency in Paraguay you can contact us from the About Us / Contact page and also visit our specialized website on obtaining Residency in Paraguay.
You may also be interested in opening an offshore account with your Paraguayan residence.
