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Paraguay

Low taxes, easy residency, affordable living

Paraguay has emerged as one of the most attractive immigration destinations for digital nomads, entrepreneurs, and retirees seeking a tax-efficient, affordable base in South America. The landlocked nation offers what few countries can match: territorial taxation (0% on foreign income), straightforward residency requirements, and one of the fastest citizenship paths in the Americas. The 2022 immigration reforms (Law 6984/22) simplified the residency process significantly, removing previous deposit requirements and streamlining documentation. Nearly 43,000 people applied for Paraguayan residency in 2025β€”a 50% increase from the previous yearβ€”reflecting growing international interest. While Paraguay lacks the beaches of Brazil or the cosmopolitan flair of Buenos Aires, it offers genuine advantages: extremely low cost of living, a stable democratic government, welcoming locals, and a growing expat community. Asuncion and Encarnacion are the main expat hubs, offering modern amenities while remaining far more affordable than comparable cities elsewhere.

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Population

7.4 million

Capital

Asuncion

Languages

Spanish, Guarani

πŸ’°Cost & Practicalities

Currency:Paraguayan Guarani (PYG)
Timezone:UTC-4 (UTC-3 in summer)
Cost of Living:$ Low
Internet:Moderate

πŸ₯Living Conditions

Safety:Moderate
Climate:Subtropical: hot humid summers (Nov-Mar), mild winters (May-Aug)
Healthcare:Moderate

πŸ›‚Immigration

English:Limited
Citizenship:~5 years total (2 years temporary + 3 years permanent)
Remote Work:Nomad friendly

Visas & Immigration

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πŸ›‚Citizenship / Naturalization

Paraguayan citizenship available after 3 years of permanent residency. One of the fastest paths to citizenship in the Americas (total ~5 years from arrival). Requirements include Spanish or Guarani language proficiency, ability to write national anthem lyrics from memory, and physical presence of at least 6 months per year during the 3-year period. Paraguay allows dual citizenship on a reciprocal basis (if your home country allows it). Paraguayan passport provides visa-free access to 147+ countries including Schengen Area. Naturalization handled by Supreme Court of Justice, currently taking 12-18 months due to demand.

πŸ‘¨β€πŸ‘©β€πŸ‘§β€πŸ‘¦Family Reunification

Residency pathway for family members of Paraguayan citizens or permanent residents. Covers spouses, children (under 18 or dependent), and parents. Follows similar process to standard temporary residency but with family relationship documentation. Spouse of Paraguayan citizen may have expedited path. Children born in Paraguay are automatically citizens.

🏠Permanent Residency

Indefinite residence status with no expiration or mandatory renewals. Available after completing 21 months of temporary residency. ID card valid for 10 years (renewable). Grants full rights equivalent to citizens except voting. Can apply no earlier than 90 days before temporary permit expiration. Starting January 2026, immigration will verify visit history during temporary period (must not have been outside Paraguay for 365+ consecutive days). Allows travel throughout Mercosur countries without passport.

πŸ’°SUACE Investor Residency

Direct path to permanent residency through business investment, bypassing the 2-year temporary residency requirement. Minimum investment of $70,000 USD that can be deployed gradually over 10 years. Investment options include commercial real estate, business equipment, operating costs, or agricultural ventures. Processed through SUACE (Unified System for Opening and Closing Companies) one-stop shop. Ministry of Industry and Commerce certifies investor status. Processing in approximately 90 days. Permanent residence card valid for 10 years.

πŸ“‹Temporary Residency

The standard pathway for expats seeking to live in Paraguay. Two-year validity with conversion to permanent residency after 21 months. No income or investment requirements since 2022 reforms (removed $5,000 deposit requirement). Must apply in person at immigration offices in Asuncion to provide biometrics. Grants full rights to live, work, and invest throughout Paraguay. Minimal stay requirement: must not stay outside Paraguay more than 365 consecutive days. Starting January 2026, visits will be verified when applying for permanent residency. Cedula (national ID) required within 12 months of approval.

Expat Life

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Cost of Living

Paraguay is one of the most affordable countries in South America. A comfortable lifestyle in Asuncion costs $800-1,500/month including rent. About 60-65% cheaper than the US or Western Europe.

Healthcare

Paraguay has a dual public-private healthcare system. Public care is free but overcrowded with limited resources. Private healthcare in Asuncion is good quality and affordable by international standards.

Banking

Opening a bank account requires a Cedula (Paraguayan ID). Foreigners must first obtain residency. USD accounts are available but require demonstrating income sources. The banking system is straightforward once you have proper documentation.

Housing

Housing is very affordable. Modern apartments in Asuncion's best neighborhoods cost $400-700/month. Foreigners can buy property without restrictions. Rental process is straightforward with typically 1-2 month deposits.

Working Remotely

Paraguay is increasingly popular for digital nomads due to 0% tax on foreign income, good internet in cities (50+ Mbps), and low cost of living. No digital nomad visa exists, but temporary residency grants full work rights.

Taxes

Paraguay uses a territorial tax system - only income earned within Paraguay is taxed. Foreign income (remote work, investments, pensions from abroad) is 100% tax-free. Local income taxed at 8-10%. No wealth, inheritance, or gift taxes.

Transportation

Asuncion relies on buses and ride-sharing (Uber/Bolt). No metro system exists. Car ownership is common but not essential in the city. Road quality varies - major highways improving, secondary roads poor.

Language

Paraguay is uniquely bilingual: Spanish and Guarani are both official languages. Spanish is essential for daily life. English is rarely spoken. Guarani is deeply embedded in culture and appreciated by locals when foreigners try it.

Safety

Paraguay is one of South America's safer countries with a homicide rate of ~8 per 100,000 (lower than regional average). Main concerns are petty crime in cities and poor road safety. Avoid border areas with known drug trafficking.

Climate & Weather

Subtropical climate with hot, humid summers (Nov-Mar, up to 40Β°C/104Β°F) and mild winters (May-Aug, 15-25Β°C). No extreme cold or snow. Seasons are opposite to Northern Hemisphere. Summer heat can be intense.

Expat Community

Growing international community, especially in Asuncion. Strong presence of German, Brazilian, and Argentine expats historically. Recent surge of American and European digital nomads. Active Facebook groups and regular meetups.

Food & Dining

Paraguayan cuisine centers on grilled meat (asado), corn, and mandioca (cassava). Dining is very affordable. Terere (cold mate) is the national drink. Good variety of international restaurants in Asuncion. No tipping culture.

Education

Paraguay has public and private schools. Private bilingual schools (Spanish/English) available in Asuncion for expat families. Universities affordable but limited international recognition. Many expats homeschool or use online programs.

Family Life

Paraguay is family-oriented with a relaxed pace of life. Good for families seeking affordable, safe environment. Childcare is inexpensive. Main challenges are healthcare quality and education options.

Culture & Lifestyle

Paraguayan culture is warm, family-centered, and relaxed. Key elements include terere sharing, asado gatherings, and strong community bonds. Pace of life is slower than Western countries. Guarani heritage adds unique character.

Questions

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