Paraguay Independent Means Visa 2025: Guide

The Paraguay Independent Means Visa, also commonly referred to as the Paraguay Retirement Visa, is one of South America’s most accessible, flexible, and tax-friendly residency programs for financially independent individuals and pensioners. 

Instead of requiring large real estate or business investments, the program enables applicants to establish residency in Paraguay by proving consistent passive or foreign-sourced income, including pensions, rental income, investment returns, or savings. 

Paraguay’s Independent Means Visa offers an affordable pathway to temporary and permanent residency, with very flexible physical presence requirements and a clear route to citizenship. 

Residents benefit from Paraguay’s territorial tax system, which exempts foreign income, and provides access to Mercosur trade bloc, allowing easier relocation across South America. 

In this guide, we explain everything you need to know about the Paraguay Independent Means Visa. You’ll learn about financial and document requirements, the application process, timelines, family inclusion, tax considerations, path to citizenship, and the benefits of retiring in Paraguay. 

The Paraguay Independent Means Visa is a route that allows foreign investors to obtain legal residence in Paraguay by demonstrating stable, verifiable passive income or financial resources from abroad.  

Informally referred to as the Paraguay Retirement Visa, or the Paraguay Passive Income Residency, this pathway is generally processed under Paraguay’s Solvency-Based Residency or general residency structure. 

The program is ideal for foreign nationals who wish to establish legal residence in Paraguay without relying on local employment or business operations as their primary source of income. 

Overview of the Paraguay Independent Means Visa:

*No officially published minimum income requirement, but this is the recommended amount for success. 

Residency stability and long-term settlement 

Holders of the Paraguay Independent Means Visa receive temporary residency for two years, with the right to live, rent or purchase property, open bank accounts, and access healthcare in Paraguay. 

After maintaining financial solvency and temporary residency status for two years, applicants can transition to permanent residency, offering indefinite stay without renewals. 

Family inclusion 

The visa allows dependent family members to be included in the Paraguay Independent Means Visa application. This includes members such as: 

• Spouse or legal partner 
• Dependent minor children 
• Financially dependent adult children 
• Dependent parents 

Each dependent receives corresponding residency rights, including healthcare, education, and work permissions in Paraguay. 

Healthcare and education access 

Residents enjoy access to both Paraguay’s public and private medical systems. 

Families can enroll children in local or private schools and universities, often at significantly reduced costs. 

Banking, legal identity, and business access 

Once residency is approved, applicants receive a cédula (national ID), enabling: 

• Opening bank accounts 
• Registering utilities and property 
• Engaging in contracts 
• Applying for RUC (tax identity) 
• Setting up a local or foreign-owned business 

Path to citizenship in Paraguay 

After two years of temporary residency and three years of permanent residency, applicants may be eligible to become a Paraguayan citizen, making it one of the fastest citizenship pathways in the Americas. 

Citizenship offers Mercosur access, regional settlement rights, and potential dual citizenship (based on reciprocity agreements). 

Lifestyle and quality of life benefits 

Paraguay is known for its affordability, economic stability, and relaxed way of life. Living costs are among the lowest in Latin America, with a Numbeo Cost of Living Index of around 27, and monthly expenses for a single resident averaging USD $800 – 900 including rent. 

The climate is consistently warm and comfortable, with a high Numbeo Climate Index score of over 90, mild winters, and long sunny summers enjoyed by retirees and digital nomads alike. 

The country is considered stable, welcoming, and culturally easy to adapt to, with minimal bureaucracy, friendly immigration policies, and a growing expat community in Asunción and Encarnación. 

Although commonly referred to as the Paraguay Retirement Visa, the residency is not restricted to retirees, making it accessible for those pursuing Paraguay citizenship. Any applicant with stable, lawful income from outside Paraguay may apply. 

To qualify for the Paraguay Independent Means Visa, applicants must have: 

• Valid passport (valid for 6 – 12 months from entry into Paraguay). 
• Stable foreign-sourced passive income or sufficient financial resources. 
• Apostilled criminal record certificates. 
• Proof of accommodation or address in Paraguay. 
• Apostilled and translated supporting documents (such as your original birth certificate). 

Family Applications and Dependents 

Eligible family members include spouses (provided you show a valid marriage certificate), dependent children under the age of 18 (shown via their birth certificates) and in some instances, financially dependent parents. 

Dependents may: 

• Apply together with the principal applicant 
• Join later after residency is granted 
• Share same rights for healthcare, schooling, and residency extension 

Dependent children may later qualify for residency or Paraguayan citizenship through family ties. 

Financial requirements 

According to current guidelines, applicants are advised to demonstrate monthly income or financial resources equivalent to at least USD $1,300, with additional funds for dependents from their home country. In addition, it is recommended to have approximately between USD $4,000 and $5,000 in savings available. 

There is technically no officially published minimum income requirement, but this is the recommended amount for success. 

Income can originate from: 

• Pensions or annuities (ideal for Paraguay Retirement Visa applicants). 
• Investment returns and dividends. 
• Rental income. 
• Royalties. 
• Trust income or savings. 

Residency stay requirement 

There is no strict minimum stay, but residents must avoid being absent longer than 12 consecutive months during the temporary residency period to maintain eligibility for permanent residency. 

Income must be passive, verifiable, lawful, and traceable, such as: 

• Pension or retirement benefits. 
• Real estate rental revenue. 
• Dividends, shares, mutual funds. 
• Investment interest. 
• Stable savings or annuities. 
• Trust or inheritance income. 

Income sources not eligible: 

• Local employment income 
• Freelance or self-employment income originating in Paraguay (unless registered under SUACE). 

Step 01/ Document preparation and legalization 

• Collect all required documents. 
• Apostille and translate into Spanish. 
• Obtain criminal certificates and financial proofs. 

Step 02/ Apply in Paraguay (in-country requirement) 

Submit documents to the Dirección General de Migraciones or via local attorney/representative. 

Step 03/ Biometric registration 

Includes fingerprints, photographs, digital signatures, and identity validation. 

Step 04/ Receive temporary residency and national ID card 

Upon approval, applicants receive: 

• Temporary residency card (valid 2 years). 
• Paraguay national ID card (cédula). 

These allow full residency rights, including banking, contracting, business, and family registration. 

Step 05/ Transition to permanent residency 

After two years of legal temporary residency, applicants can request permanent residency. 

The average processing time for the temporary residence permit through the Paraguay Independent Means Visa is 1 to 3 months.  

The cédula ID is issued between 4 to 8 weeks after the temporary residence permit is approved. 

The cost of applying for the Paraguay Independent Means Visa or Paraguay Retirement Visa is generally lower than most residency programs in Latin America and does not require any large upfront investment, property purchase, or donation. 

Instead, applicants must budget for government processing fees, legalization and translations, document authentication, and professional/legal assistance if using a relocation or immigration agent. 

Below is a typical cost breakdown: 

Total estimated cost for a single applicant: 

• $1,200 – $2,800 (excluding professional assistance) 
• $2,500 – $6,000 (if using legal or relocation service providers) 

Other potential or optional costs include:  

• Residency card renewal or replacement 
• Family dependents’ document processing (apostilles, translations, etc.) 
• Opening a bank account and tax registration (minimal local administration fees) 
• Relocation expenses (accommodation, flights, notarizations) 
• One of the lowest-cost residency options in South America 

Paraguay applies a territorial tax model, meaning only Paraguayan-sourced income is subjected to personal income tax. Foreign income, including pensions, dividends, rent, and investment returns, is not taxed locally.  

In addition to being exempt from global income tax, the visa also offers exemptions from inheritance, estate, wealth, and asset taxes, making it ideal for pensioners and international investors. 

You may qualify as a Paraguay tax resident if you: 

• Hold Paraguayan residency and national ID card. 
• Register for RUC (tax ID). 
• Spend more than 120 days per year in Paraguay. 
• Maintain a primary home or business base in Paraguay. 

The Paraguay Independent Means route grants temporary residency for two years, permanent residency after those two years, and eligibility for citizenship following three years of permanent residency. 

Paraguayan citizenship requires: 

• Basic Spanish language ability. 
• Clean criminal history. 
• Proof of residence and integration. 
• Presence and domicile. 

Dual citizenship is allowed only with countries that have reciprocity treaties (France, Italy, Spain, some Latin American states).