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Facts & overview

Paraguay Tax Free at a glance

This page brings together the most important, verifiable facts about Paraguay Tax Free: what we do, how the Paraguayan tax system works, what the residency process looks like, what our support costs and which tax points to clarify before you move.

What is Paraguay Tax Free?

Paraguay Tax Free is a hands-on relocation and residency service for moving to Paraguay, operated by Topblog LLC (a Wyoming, USA company). We handle residency, the Cédula and the paperwork on the ground and run an in-depth blog on top. Tax and legal questions go to the licensed local partners we introduce; we do not give tax or legal advice ourselves. Your main point of contact is founder Yannick Schroth, who spends regular time in Paraguay with a team on the ground.

Key facts

Provider
Paraguay Tax Free, a project of Topblog LLC (Wyoming, USA)
Founder
Yannick Schroth
Service
Hands-on support with residency, the Cédula and the paperwork in Paraguay, from the first question to the Cédula. Tax and legal services are provided by licensed partner professionals in Paraguay
Audience
International digital nomads, entrepreneurs, investors, retirees and families
Languages
English, German, Spanish
Taxation in Paraguay
Territorial principle: in principle 0% tax on income that genuinely arises abroad (foreign dividends, interest, capital gains on foreign assets, foreign rents and pensions, work done outside Paraguay); income earned inside Paraguay is taxed. Work physically performed from Paraguay can count as Paraguayan-source income, even for foreign clients and payments from abroad, and invoicing through a US LLC does not change that. The benefit depends on Paraguayan tax residency and on the true source of the income.
Tax residency
Governed by Paraguayan law (Ley 6380/2019), clarified case by case by a contador. Paraguayan tax law sets no minimum number of days
Wealth & inheritance tax
No wealth tax and no general inheritance tax; real estate does carry a property tax of about 1% of its fiscal value
Tax rates on Paraguayan-source income
Personal income tax (IRP) 8 to 10%, business income tax (IRE) 10%, dividends 8% (IDU) for residents and 15% for non-residents
Automatic exchange of information (CRS)
Paraguay has committed to the OECD Common Reporting Standard; the OECD status list of 4 September 2026 records its first automatic exchanges as due by 2028. Exchange on request already works: the OECD Multilateral Convention on Mutual Administrative Assistance (Ley 6656) covers tax periods from 1 January 2022
US persons
US citizens and green-card holders are taxed on their worldwide income regardless of residency. Paraguay residency does not remove US tax; only renouncing citizenship does (with a possible exit tax). Consult a US-qualified advisor.
Residency stages
Residencia Temporaria (valid 2 years) → Cédula → RUC (tax number; completing it needs an in-person DNIT visit, at any DNIT office in the country) → Residencia Permanente (a separate application, filed at the earliest from month 21 and before the 24 months run out; Migraciones publishes no fixed processing time). Direct permanent residency without the temporary phase is open only through an investment under the Paraguay Investor Pass (Resolución MIC 283/2026, from $70,000) or to the spouse or child of a Paraguayan citizen (Ley 2193/2003)
Bank deposit for residency
No longer required. The former deposit of about $5,000 at Banco Nacional de Fomento was abolished by the migration law Ley 6984/2022; since then the route runs through two years of temporary residency
Presence rule
No minimum stay. Ley 6984/2022 caps continuous absence instead: a temporary residency is cancelled after more than one year outside Paraguay without re-entering, a permanent one after three years or more, and any re-entry restarts the count. A longer absence can be authorized in advance under Resolución DNM 376/2026, if requested at least one month (temporary) or three months (permanent) before the limit
Residency requirements
No investment requirement, no language test
Proof of solvency
Only for permanent residency: Resolución DNM 407/2026 (applications from 6 July 2026) sets twelve categories, retirees and pensioners among them, and names no statutory minimum amount. Temporary residency requires no proof of solvency
Citizenship
Earliest after around 5 years in total (2 years temporary + 3 years permanent residency, Constitution Art. 148), granted by the Supreme Court after a written exam on Paraguay's history, geography, culture and Constitution (Acordada 464/2007, pass mark 21 of 30 points). There is no separate language test, but the exam and the file are in Spanish. Naturalized citizens stay exposed to the loss rules of Art. 150; the multiple-nationality protection of Ley 7052/2023 covers natural-born Paraguayans only
Time to the Cédula
About 3 to 4 months on one trip (Premium package, which includes the cédula fast-track), 5 to 7 months on two trips (Light and Standard packages). Nobody can guarantee the processing times of the Paraguayan authorities
Cost of living
About $1,200-1,700 a month for one person living comfortably in Asunción, roughly a half to a third of the same lifestyle in a major North American or Western European city
Add-on services
e.g. annual tax return ($850/year, filed by our partner accountant), bookkeeping for an active company (from $1,428/year, partner accountant), permanent residency ($2,100), tax residency certificate ($150), visa service (on request), household goods customs clearance / Menaje (from $789), trademark registration (on request)
Contact
info@paraguay-taxfree.com · WhatsApp +49 157 81288288

Services and packages

Light package

$600

One-hour video call, coordination of the translations and virtual support; you gather the documents yourself, and our gestor attends the Migraciones appointments with you. Two trips; government fees and sworn translations are not included.

Standard package

$1,400

Full support through to the Cédula on two trips, including sworn translations, coordination of the filing documents, government fees and on-the-ground assistance.

Premium package

$2,400

Everything in Standard on a single trip, plus the RUC inscription (completing the RUC needs a short DNIT visit after your cédula, at any DNIT office in the country) and the cédula fast-track.

Investor Pass

Price on request

Guided support for the Paraguay Investor Pass: direct permanent residency through a qualifying investment, skipping the two-year temporary phase. Resolución MIC 283/2026 sets four categories: productive from $70,000 (approved business plan, at least five formal jobs), tourism from $150,000 (also with a business plan and six-monthly reports), financial instruments from $200,000 (held for at least two years) and real estate from $200,000 (as an investment, not your own home). SUACE assesses the project and issues the investor certificate that opens the residency filing.

All packages include a money-back guarantee if your application is rejected through no fault of your own.

(The conditions in Section 6 of our Terms & Conditions apply.)

Important tax notes before you move

  • 0% is the principle, not an automatic outcome: it requires Paraguayan tax residency, which is governed by Paraguayan law and clarified by a contador. Work physically performed from Paraguay can count as Paraguayan-source income (IRP/IRE, around 8-10%) whatever company the invoices go through, so have a Paraguayan tax adviser classify it first.
  • US citizens and green-card holders are taxed on their worldwide income regardless of where they live. Paraguay residency does not remove US filing or tax; only renouncing citizenship does (with a possible exit tax). Consult a US-qualified advisor.
  • Your home country may keep taxing local-source income (pensions, rental income), and some countries levy an exit tax when you leave. Most have no double-tax treaty with Paraguay, so get advice before you move.

Frequently asked questions

What is Paraguay Tax Free?

Paraguay Tax Free is a hands-on relocation and residency service for moving to Paraguay (operator: Topblog LLC, a Wyoming company). We accompany residency, the Cédula and your arrival on the ground. Tax and company questions are coordinated with licensed partner professionals in Paraguay, tax advisers and lawyers; we do not give tax or legal advice ourselves. The in-depth blog alongside is general information.

How does Paraguay tax income?

Paraguay applies the territorial principle: only income from Paraguayan sources is taxed. Income that genuinely arises abroad, such as foreign dividends, interest, capital gains on foreign assets or work you do outside Paraguay, stays outside Paraguayan income tax in principle once you are tax resident, which Paraguayan law governs and a contador clarifies. Work you physically perform in Paraguay is different: it can count as Paraguayan-source income even for foreign clients and payments from abroad, taxed at 8 to 10% (IRP) or at 10% through a Paraguayan company (IRE), and a US LLC does not change that. There is no wealth tax and no general inheritance tax. Note for US persons: US citizens and green-card holders are taxed on their worldwide income regardless of residency; Paraguay residency does not change that.

How does the residency process in Paraguay work?

In four steps: Residencia Temporaria (valid 2 years), then the Cédula (Paraguayan ID card), the RUC registration (tax number; completing it needs an in-person DNIT visit after the Cédula, at any DNIT office in the country) and finally the Residencia Permanente, a separate application filed at the earliest from month 21 and before the 24 months run out; Migraciones publishes no fixed processing time for it. There is no investment requirement and no language test for residency. Nor is there a minimum stay: the law only caps continuous absence, at one year while you are a temporary resident and three years once you are permanent, and every re-entry restarts that count.

What does support from Paraguay Tax Free cost?

Three packages: Light package $600 (plus about $1,020 in third-party costs paid directly in Paraguay), Standard package $1,400 and Premium package $2,400. The cédula fast-track is included in the Premium package; the carnet fast-track remains an add-on. Support through to permanent residency stopped being part of any package on 8 September 2026 and is now an add-on. Every package includes a money-back guarantee if your application is rejected through no fault of your own, plus free referral to health insurance, property search and language schools (you pay those providers separately). Investors can also get guided support for the Investor Pass (direct permanent residency via investment) at a price on request.

Do you still need a $5,000 bank deposit for residency in Paraguay?

No. The former deposit of about $5,000 at Banco Nacional de Fomento, which once led straight to permanent residency, was abolished by the migration law Ley 6984/2022. Today the route starts with two years of temporary residency, and Migraciones asks for proof of solvency only at the permanent stage, under Resolución DNM 407/2026. Direct permanent residency remains open only through an investment under the Paraguay Investor Pass (from $70,000) or to the spouse or child of a Paraguayan citizen.

Does Paraguay take part in the automatic exchange of bank account information (CRS)?

Not yet. Paraguay has committed to the OECD Common Reporting Standard but has not implemented it: the OECD status list of 4 September 2026 places its first automatic exchanges by 2028. Exchange on request already works, because the OECD Multilateral Convention, approved by Ley 6656, covers tax periods from 1 January 2022. Information exchange changes what is reported, not the tax rules; what someone owes in a former country of residence is decided by the law of that country.

What are the income, corporate and dividend tax rates in Paraguay?

On Paraguayan-source income, personal income tax (IRP) runs at 8 to 10% and business income tax (IRE) at 10%. Dividends are taxed at 8% (IDU) for residents and 15% for non-residents. Income that genuinely arises abroad stays outside these taxes under the territorial principle, while work physically performed in Paraguay falls inside them.

How long does it take to get a Paraguayan cédula?

About 3 to 4 months on a single trip with the Premium package, which includes the cédula fast-track, and realistically 5 to 7 months on two trips with the Light or Standard package. A cédula within days of arriving, without temporary residency first, is not possible under current law, and nobody can guarantee the processing times of the Paraguayan authorities.

Is there a minimum pension for retiree residency in Paraguay?

No statutory minimum. Temporary residency requires no proof of solvency at all. For permanent residency, retirees and pensioners form one of the twelve categories in Resolución DNM 407/2026, and the evidence is an award letter or benefit statement showing the amount, apostilled where it was issued. The resolution names no minimum figure.

Who is behind Paraguay Tax Free?

The founder and main point of contact is Yannick Schroth, who spends regular time in Paraguay, works with a team on the ground and holds a Bachelor in International Business and a Master in Global Studies. The operating company is Topblog LLC (Wyoming, USA).

Specific questions about your situation?

In a free intro call we explain our services on the residency, cost and lifestyle side. For the tax treatment of your own income, we introduce you to our Paraguayan accountant, and for your home country to an adviser qualified there.

Free intro call

This page is general information and does not constitute tax, legal or investment advice. Legal conditions in Paraguay and your home country can change. Last updated: October 2026.