Banking

Banking in Paraguay

Banking in Paraguay is straightforward but requires proper documentation. The key requirement: you need a Paraguayan Cedula (national ID card) to open a personal bank account.

The Process

Step 1: Get Residency

You cannot open a bank account as a tourist. The sequence is:

1. Apply for temporary residency
2. Receive residency approval
3. Apply for Cedula at police department
4. Wait 24-48 hours for Cedula to be registered in banking systems
5. Open bank account

Step 2: Choose a Bank

Step 3: Required Documents

• Paraguayan Cedula (essential)
• Passport
• Proof of address (utility bill or rental contract)
• Proof of income (for higher limits)
• Initial deposit ($500-3,000 depending on bank)

Account Types

Basic Guarani Account:

• Available immediately after getting Cedula
• Balance limits until you provide income proof
• Maximum ~$1,000 equivalent until expanded

Full Account (with income documentation):

• Show 6 months of tax payments (IVA returns) or
• Provide documented source of funds
• Higher transaction limits

USD Account:

• Available but requires more documentation
• Monthly income proof of $2,000-2,500 typically required
• Useful for protecting against Guarani fluctuation
• Can hold USD, receive international transfers

Important Considerations

Anti-Money Laundering:

Paraguay banks are obligated to SEPRELAD (money laundering prevention authority). Large or unusual transactions are monitored. Be completely transparent about your income sources.

RUC (Tax ID):

For full banking access, you'll eventually need an RUC (tax identification number). This becomes important if you:

• Earn income locally
• Want higher transaction limits
• Need to show "activity" for USD accounts

International Transfers

Receiving Money:

• SWIFT transfers work to Paraguayan banks
• Itau recommended for international transactions
• Expect 2-3 day processing
• Fees: $20-50 per incoming transfer

Sending Money:

• Outgoing international transfers possible
• Higher fees than receiving ($30-75)
• Wise (TransferWise) also works for some purposes

Digital Banking

Paraguay's banking is modernizing:

• Most banks have mobile apps
• Online banking available in Spanish
• Card payments increasingly common in Asuncion
• Cash still king in smaller cities

Tips for Expats

1. Start with basic account - upgrade later once you have income proof
2. Keep records of all international transfers and their purpose
3. Itau is generally the best choice for international connections
4. Don't expect English - banking is conducted in Spanish
5. Patience required - bureaucracy moves slowly