Benefits of Getting Paraguay Permanent Residency and Citizenship
Paraguay, bordered by Argentina, Bolivia, and Brazil, is one of the easiest and cheapest options if you are looking for second citizenship. It is famously called the “Heart of South America,” as it is centrally located on the continent.
Paraguay is a calm country that offers endless possibilities for tourism, thanks to its varied geography and inviting climate. The country’s rich history and the folk art that adorns the towns contribute to its enchanting identity, and it welcomes all nationalities with open arms, especially foreign investors and entrepreneurs, to become tax residents.
Here are some of the benefits of becoming a Paraguay resident:
- With Paraguayan residency, you can live, work and study in the country.
- You do not have to live there physically to maintain permanent residency status. You just need to visit the country every three years, and no status renewal is required.
- You can get Paraguayan citizenship with a relatively small bank deposit.
- The country does not tax foreign-sourced income.
- A Paraguayan passport allows travel to the United Kingdom (UK), European Union (EU), and Ireland without a visa if you are a citizen of Paraguay.
- Paraguay is a member of Mercado Común del Sur (MERCOSUR), which allows you to travel anywhere in South America without a visa.
- The GDP growth rate of Paraguay is one of the greatest in the world.
Requirements to Get Paraguay Permanent Residency
Paraguay is one of the easiest countries to acquire permanent residency, thanks to its minimal requirements. In this part of the article, we will provide you with information on how to acquire permanent residency, the required documents, processing time, and the validity of the residency.
Options to get the Paraguay permanent residency
The route to Paraguay permanent residency is a straightforward process with various options. In the following section, we have highlighted some of the common ways in which you can get a Paraguay permanent residency.
- Bank deposit: If you are from a country that does not require a visa to enter Paraguay or requires a visa upon arrival, such as the US, Canada, Australia, or New Zealand, you can get permanent residency by depositing $4,500 (₲31,076,532) into a Paraguayan bank account. Usually, the deposits are without interest, and you can withdraw this deposit after obtaining permanent residency.
- Investment program: If you are from a country that requires a visa to enter Paraguay, then you can opt for Paraguay’s citizenship-by-investment program. The minimum investment required is $70,000, and this can be realized in ten years. As such, you must show in your business plan that your company can spend $70,000 in ten years. Some of the activities that are considered valid for the investment program include engaging in agricultural land or commerce, purchasing real estate properties, and offering services. Check out our article, Paraguay Permanent Residency, to learn more.
- Retiring in the country: You are eligible for this option only if your monthly retirement income is at least $1,022 (₲7,015,600) per month. There is no age limit for retirement in Paraguay.
Processing time and validity of the Paraguay permanent residency
The process of getting a Paraguay permanent residence permit can take up to 90 days from the date of application, along with multiple week-long visits to the country. Ensure that you visit Paraguay within six months of receiving the permit and apply for an ID card. It is recommended to get an attorney for legal assistance if you do not speak Spanish. Your Paraguay permanent residency permit is valid for five years.
Acquiring Citizenship in Paraguay
According to Paraguay’s citizenship laws, you can apply for citizenship three years after receiving your permanent residence permit. You should have spent a minimum of 183 days in Paraguay every year for three years in order to apply for citizenship. You are also expected to pay your taxes and social security and learn Paraguayan history and Spanish.
Note that while you can apply for citizenship three years after getting your permanent residence permit, the naturalization procedure might take a few more years to complete from your date of application.
The following are required in order to apply for Paraguayan citizenship:
- Must be 18 years or older with a valid passport
- Immigration card
- Permanent residence permit
- Police certificate from home country
- Medical certificate
- Police certificate issued by the National Police of Paraguay
- Paraguay identity card
- Birth certificate (translated and authenticated)
- Certificate of employment (if you are working in a company)
- Authenticated certificates, if you are an owner of a registered property
- Signed affidavit (issued by Supreme Court of Justice)
Benefits of Paraguay citizenship by investment
- With the Paraguay passport, you can travel to over 130 countries visa-free or with visa-on-arrival, including Russia, the European Union, and the United Kingdom.
- If you have Paraguayan citizenship, it is easy to get an employment visa in the United States of America.
- As a citizen of Paraguay, you can settle in any MERCOSUR country, such as Argentina, Brazil, or Uruguay.
If you are interested to know more about the passport power of Paraguay, check out our Paraguay Global Passport Index guide.
Dual citizenship in Paraguay
According to the Paraguayan National Constitution, dual citizenship may be allowed only through an international treaty and by reciprocity of constitutional rank between the states of origin and adoption. If you want to maintain your original nationality, your country of origin must hold a bilateral agreement with Paraguay. We recommend hiring an immigration attorney to help you make an informed decision.
Tax benefits in Paraguay
Among the MERCOSUR, Paraguay has the highest tax benefits. In Paraguay, you will be considered a tax resident if you spend more than 120 days a year in the country.
Personal income tax
Both foreigners and residents are subject to pay personal income tax for their Paraguayan source of income. However, the majority of the residents and citizens do not pay personal income tax as their annual income does not exceed the minimum threshold. Paraguay has a territorial tax system, which means that only the income you earn within the territory is taxed. The income you earn from abroad is legally exempted from tax.
As a resident, you need to start paying personal income tax when you earn at least $22,500 in Paraguay. The taxation, however, is manageable, as Paraguay levies a ten percent tax on almost all income categories.
Other tax rates
The standard VAT rate in Paraguay is ten percent, but this is reduced to five percent on certain goods and services. Corporate tax is a flat rate of ten percent on the income derived from Paraguay, and estate tax is a mere one percent. Paraguay has no net worth tax, inheritance, and capital tax.
However, if you are an entrepreneur or investor and you are not tied to any place, you can live in Paraguay completely tax-free.
The process to become a tax resident
The process of becoming a tax resident in Paraguay is simple and straightforward:
- Once you receive your ID card proving your permanent residency, collect the documents showing that you are a tax resident.
- Register at the Treasury Office and participate in the official course for self-employment to get your tax number, or Registro Único del Contribuyente (RUC).
- Both the above-mentioned processes require your physical presence in Paraguay and are completely in Spanish. If you do not speak Spanish, we recommend you get a translator.
- After getting your RUC, file for value-added tax (VAT). It is recommended to hire an accountant to help you with the process.
The documents you must have after becoming a tax resident are:
- Life and residence certificate, National Police-issued proof of address in Paraguay
- Tax authority’s certificate (you will have a new copy every month as monthly VAT is binding)
- Bank account statement with a local address
- Landlord statement
- Mobile phone contract
Conclusion
If you are looking for permanent residence in a country that requires a minimal physical presence, are unable to get a tax residence elsewhere because you travel too often, or are searching for a low-cost residence and citizenship with the highest tax benefits, Paraguay is best suited to you.
Its location in the middle of the South American continent provides various scopes and opportunities for entrepreneurs who are looking to expand their businesses and relations. For citizens of nations that have a bilateral agreement with Paraguay, the option of dual citizenship in Paraguay is an easy consideration.
Thanks to its relaxed pace of life, temperature, and friendly people, Paraguay is, in many ways, considered the best country in Latin America to live in. If you are seeking a tranquil lifestyle with a bright atmosphere, it is an easy process to officially call Paraguay your second home and enjoy the wonders of living in this beautiful country.
Related Articles
If you are interested in other excellent citizenship-by-investment programs, please check out the following articles.
- Antigua and Barbuda CBI program
- Dominica CBI program
- St Lucia CBI program
- Grenada CBI program
- St Kitts and Nevis CBI program
- Caribbean Citizenship by Investment Comparison Guide
How Global Citizen Solutions Can Help
Expats and foreign investors can encounter many difficulties when applying for Paraguayan citizenship, which is why it is worthwhile to have an expert on hand to provide personalized Paraguayan naturalization assistance throughout the application process.
Our specialists can help you with the following:
- Minimize the visits you have to make to the designated country
- Have someone who works solely on your behalf
- Reduce the hassle associated with putting your application together
- Acquire insider knowledge from someone with years of experience in the market
Let’s get you moving forward in your quest to obtain Paraguayan citizenship and an Paraguayan passport. Get in touch with us to book a free consultation.
Frequently asked questions
How can I become a permanent resident of Paraguay?
You can acquire a permanent residence permit by making a minimum investment of $70,000, which can be realized over a ten-year period, or by retiring to the country with a monthly retirement income is at least $1,022.
How can I become a citizen of Paraguay?
You can apply for citizenship three years after receiving your permanent residence permit. You must have spent a minimum of 183 days every year for three years in Paraguay to be eligible to apply for citizenship.
How long does it take to get citizenship in Paraguay?
If you satisfy all the requirements, your citizenship should be granted within three months.
How strong is the Paraguay passport?
With a Paraguay passport, you can travel to 146 visa-free or visa-on-arrival countries, including the UK and the EU.
Do I have to become a tax resident after getting permanent residence?
No, not necessarily. However, it is an advantage to become a tax resident, as Paraguay is considered a tax haven for both foreign and local investors.
Does Paraguay offer dual citizenship?
Paraguay offers dual citizenship options only to those countries which have bilateral ties with it. It is recommended to hire an attorney to take you through the process.
What is the minimum investment amount to get a permanent residence by investment?
The minimum investment to get a permanent residence is $70,000, and this can be realized over ten years. Some of the investment programs you can opt for are agriculture, commerce, real estate, or providing services.
How much does it cost to get citizenship in Paraguay?
While you cannot buy citizenship in Paraguay, you have two options to obtain citizenship. The first – if you are from a country that requires a visa for Paraguay – is by making an investment of $70,000 to obtain residency. Once you have had residency in Paraguay for three years, you can apply for citizenship, provided you meet the requirements.
Can you have dual citizenship in the US and Paraguay?
Unfortunately, Paraguay does not allow dual US/Paraguayan citizenship.
