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Paraguay tax free:0% tax on your foreign income.
Legal
and permanent.

Paraguay offers one of the most attractive tax systems in the world: a territorial regime where foreign income is not taxed. We guide you to genuine residency, your cédula and the right structure.*

100% money-back guarantee
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Personal 1:1 guidance, never a call center.
The problem

Are you handing over up to 45% in tax?

If you earn online from a high-tax country, you know the pattern: a complex tax system that was never built for a location-independent, digital career.

High tax burden

Income tax of 40-50% in many high-tax countries, before social charges are added

Bureaucracy

VAT returns, bookkeeping, complex filings, and an accountant you can barely do without

Social charges

Health and social contributions that often exceed $1,000 per month

Tied to one place

Your tax bill is locked to a country you may not even want to live in

The solution

Why Paraguay?

South America's best-kept tax secret. A territorial tax system that leaves your foreign income completely untaxed.

0% tax

0% tax on foreign income

Paraguay uses a territorial tax system. Only income earned inside the country is taxable. Your income from clients abroad, EU platforms or anywhere in the world? Untaxed in principle, with correct structuring and genuine tax residency.

21 months

Straightforward residency

Paraguay requires no minimum deposit. You apply to convert to permanent residency after about 21 months, so it is in place once the two years are up. Physical presence is minimal: during the temporary phase, one entry per year is enough; with permanent residency, once every three years.

140+ countries

A path to a second passport

Citizenship becomes possible around 5 years after your first application (2 years temporary + 3 years permanent residency). Visa-free access to 140+ countries including the EU, UK and Singapore. Paraguay allows dual citizenship.

Up to 60% cheaper

Low cost of living

Live comfortably for around $1,200 to $1,700 per month, or leaner from about $900. Modern apartments, fast internet, solid infrastructure. Far cheaper than most major Western cities.

Fiber available

A growing expat community

Asunción is a fast-growing digital-nomad destination. Fiber internet up to 150 Mbps, Starlink available. A safe, friendly city.

Flexible

Minimal presence required

You don't have to live there full time. Temporary residency: enter at least once a year. Permanent residency: once every three years. Citizenship, however, requires a genuine center of life in Paraguay (several months a year in practice), while Paraguayan tax residency requires roughly 120 days a year. Three separate requirements.

A typical high-tax country vs Paraguay

Category
High-tax country
ParaguayParaguay
Tax on foreign incomeUp to 45-50%0%
BureaucracyHigh (VAT returns, filings)Minimal
Cost of living$2,700-4,500/month$1,200-1,700/month
Passport strengthVaries140+ countries visa-free
Path to citizenshipOften difficult~5 years (2 temp. + 3 perm.)
Presence requiredFull-time residenceOnce every 3 years
Services

Transparent pricing, no hidden costs

Choose the package that fits you. Every package includes our money-back guarantee.

Consultation

$700

Light package

$1,550

Standard package

$2,100

Premium package

$2,600

All-in package

$5,500

Plus 20+ add-on services and the Investor Pass (direct permanent residency via investment).

Included in every package: free referral to health insurance, property search and a language school. Money-back guarantee for a rejection that is not your fault.

Rare service — hard cases welcome

Residency for visa-required nationalities

Most providers only help passports that already enter Paraguay visa-free. We are one of the few who handle the full residency process for nationals of visa-required countries — across much of Africa, South Asia, the Caribbean and the Pacific.

Handled end to end

We assess your specific passport, map the realistic entry route, and coordinate the residency filing around it — not just the paperwork.

Individual quote

Because these cases vary so much by nationality, the service is offered at a price on request after a short, free assessment.

The honest limit

No provider can guarantee entry. We prepare a strong, correct file and the right entry route, but the final admission decision always rests with the individual Migraciones officer. Note: we currently cannot serve passports from Pakistan or Bangladesh.

US citizens & green-card holders

What US persons must know

The United States taxes its citizens and green-card holders on worldwide income, wherever they live. Here's what that means for Paraguay.

Worldwide taxation

The US taxes citizens and green-card holders on worldwide income regardless of residency (citizenship-based taxation).

Paraguay residency does not remove US tax
You still file a US return every year
This is separate from Paraguay's 0% territorial tax

FEIE helps only partially

The Foreign Earned Income Exclusion (Form 2555) can shelter part of your earned income, but not all of it and not passive income.

Annual exclusion cap on earned income
Does not cover dividends, capital gains, most business profit
Self-employment tax can still apply

FBAR & FATCA reporting

Foreign accounts and assets must be reported (FBAR, Form 8938). A Paraguayan bank account counts.

FBAR for foreign accounts over the threshold
FATCA reporting for larger asset holdings
Penalties for non-filing are steep

Only renunciation ends it

Full exemption requires renouncing US citizenship, which can trigger an exit tax. This is a major, irreversible decision.

A second passport (e.g. Paraguay) is usually a prerequisite
Possible exit tax on unrealized gains
Take specialized US advice first

Bottom line for US persons

Paraguay can still lower your cost of living, give you a strong second residency and a path to a second passport. But it does not, by itself, make a US person tax-free. If you hold a US passport or green card, talk to a US-qualified advisor before you plan around 0%, and read our dedicated guide for US citizens in Paraguay.

Read the US-citizens guide
Compare your options

Paraguay vs other countries

See how Paraguay compares with other popular destinations for tax optimization

Paraguay

Paraguay

Recommended
Tax on foreign income0%
Cost of living$1,200/mo
Time to residency3-4 months
Path to citizenship~5 years
Minimum investmentNone
Physical presence1x/yr (temp.), 1x/3yr (perm.)
Passport strength140+ countries
Dubai (UAE)

Dubai (UAE)

Tax on foreign income0%
Cost of living$3,300/mo
Time to residency2-4 weeks
Path to citizenshipEffectively no
Minimum investment~$540K+ (Golden Visa)
Physical presenceNone (Golden Visa)
Passport strengthn/a
Portugal

Portugal

Tax on foreign incomeup to 48%**
Cost of living$2,100/mo
Time to residency6-12+ months
Path to citizenship5-10 years**
Minimum investment$0 (EU citizens)
Physical presence7 days/yr
Passport strength180+ countries
Thailand

Thailand

Tax on foreign income0-35%*
Cost of living$1,100/mo
Time to residencyVisa only
Path to citizenship10+ years
Minimum investment~$18K (Elite Visa)
Physical presenceVisa runs needed
Passport strengthn/a

Paraguay: 0% applies in principle with genuine Paraguay tax residency and an income source outside Paraguay. * Thailand: foreign income taxable when remitted (5-35%). ** Portugal: NHR was abolished in 2024; the IFICI successor covers only certain professions. As of 2026.

Paraguay offers the best combination of low tax, affordable living and a path to citizenship

Start with Paraguay
Life in Paraguay

What life looks like in your new home

Modern comforts, affordable living and a growing international community

Asunción cityscape
Streets in Paraguay
Modern Paraguay
Lifestyle in Paraguay

Modern cities

Asunción has malls, restaurants, nightlife and every modern convenience.

Safe & friendly

Low crime rates, friendly locals and a growing expat community.

Great weather

A subtropical climate with warm weather year-round. No harsh winters.

Excellent food

World-class beef, international cuisine and familiar options available.

Fast internet

Fiber in Asunción (up to 150 Mbps for ~$20/month), Starlink available nationwide.

Travel hub

Easy access to Argentina, Brazil and the rest of South America.

Monthly cost of living

A comfortable lifestyle for one person in Asunción

Rent (modern apartment, city center)$330-410
Utilities (electricity, water, internet)$65-90
Groceries & shopping$160-230
Monthly total$700 - $980

Base budget. For an upmarket lifestyle, around $1,300-1,700/month

Free download

Get your free Paraguay Tax Free guide

Everything you need to know before you move. 12 pages of practical insight.

Full residency requirements & document checklist
Step-by-step residency-application guide
Cost breakdown: fees, living costs, setup costs
Best neighborhoods & housing guide
Banking & financial-setup guide
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Paraguay Tax Free guide
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Paraguay Tax Free guide

12 pages of practical insight

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Note: details in the guide may be less current than this website. In case of doubt, the information on the website always applies.

FAQ

Frequently asked questions

Everything you need to know about moving to Paraguay

Still have questions?

Ask us directly
Where people settle

Where do foreigners actually live in Paraguay?

15 locations, from the capital to the Chaco, with an honest read on what each one is like.

Network on the ground

Trusted partners in Paraguay

For everything beyond the residency process itself, we work with a small circle of vetted, experienced professionals in Paraguay.

Tax advisors

Local tax professionals for RUC, bookkeeping and compliance in Paraguay.

Lawyers and firms

Legal support for contracts, company formation and dealings with the authorities.

Real estate

Vetted agents for renting or buying, with local market knowledge.

Notaries

Certifications and legally sound documents for your local matters.

We coordinate and make the introductions. The substantive tax and legal advice is provided by the licensed local professionals themselves.

About us

Your partner for Paraguay

Personal experience meets local expertise

Yannick Schroth

Digital nomad • Years of experience worldwide

I'm the founder of Paraguay Tax Free and your main point of contact. After years as a digital nomad across many countries, I made Paraguay my home. I lived and worked in Mexico, Colombia, Taiwan, Thailand, Peru and many other places, but Paraguay is the one that convinced me on every level.

My goal is to make Paraguay accessible to more people and to attract the right kind of expats: people who respect the country and its people and want to contribute to its positive development.

More about Yannick

Profile

Lived & worked in:

MexicoMexicoColombiaColombiaTaiwanTaiwanThailandThailandPeruPeruParaguayParaguay

Education

Bachelor, International BusinessMaster, Global Studies

Languages

German, English and Spanish

Remote experience

TopblogOwner of Topblog Agency

Socials

LinkedIn

Contacts in other languages

For other language regions, a dedicated local team handles the move to Paraguay.

Stijn Veentjer

Stijn Veentjer

Emigration & relocation specialist

Netherlands

Visit the website
Camila

Camila

Emigration & relocation specialist

Brazil & Portugal

Visit the website
Yannick Schroth - founder of Paraguay Tax Free

Yannick Schroth

Founder & main contact

Why us

Why work with Paraguay Tax Free?

We've built one of the few specialized, end-to-end services for internationally mobile nomads, entrepreneurs and investors

On the ground

Our team is based in Asunción and knows every office, process and contact in person.

Tax structuring expertise

We understand territorial taxation and the specific challenges of relocating your tax residency.

Transparent pricing

No hidden costs. You know from the start exactly what to expect.

Long-term support

We're here not only for the application, but for all the questions that come after.

Specialized in newcomers

We specialize in international expats and understand your specific needs.

Money-back guarantee

If your application is refused through no fault of your own, we refund your service fee in full. Refusals you cause yourself are excluded.

Get started

Ready to stop paying 45% in tax?

Book a free 30-minute intro call. No obligation.

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Yannick Schroth

You write directly to Yannick Schroth, founder and a Paraguay expat himself, and consultations run in German, English or Spanish. A personal reply, never a call center.

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Blog

Latest articles & guides

In-depth guides on tax, residency and life in Paraguay, updated regularly.

Complete guide

Paraguay tax residency: how 0% territorial tax works

Territorial tax, structure, residency and the cédula, step by step in one place.

Open the guide