Do I have to live in Paraguay full time?

For residency, no. During temporary residency (the first 2 years) you must enter at least once a year. With permanent residency, one entry every 3 years is enough. For later citizenship, however, you should have a genuine center of life in Paraguay, typically 6 to 9 months a year. Note that Paraguayan tax residency is a separate test and generally requires around 120 days a year.

How exactly does the tax work?

Paraguay has a territorial tax system: only income earned inside Paraguay is taxable (max. 10%). Income from abroad (clients overseas, international platforms or foreign companies) is taxed at 0%. Important: for your income to clearly count as foreign-source, correct structuring matters. Many of our clients use a foreign company structure such as a US LLC. We help you find the right setup for your situation.

Do US citizens really pay 0%?

No, not automatically. The United States taxes its citizens and green-card holders on worldwide income regardless of where they live (citizenship-based taxation). Paraguay residency does not remove your US filing obligation or tax liability; only renouncing citizenship does, with a possible exit tax. The Foreign Earned Income Exclusion only helps partially. If you are a US person, speak to a US-qualified advisor and read our dedicated US-citizens guide.

What does it cost to live in Paraguay?

A comfortable lifestyle in Asunción costs roughly $1,200 to $1,700 per month. That includes rent for a modern apartment ($500-800), groceries, internet, transport and leisure. Compared with most major Western cities, you save around 50 to 60%.

Do I need to speak Spanish?

Not for the residency process. We and our partners on the ground speak English and Spanish. For daily life, some Spanish helps, but many expats get by with English at first. Learning Spanish naturally makes life richer.

How long does the whole process take?

You typically receive Paraguayan residency with a cédula within 8 to 16 weeks of applying. The standard route runs through temporary residency, which converts to permanent after 2 years. Direct permanent residency is possible in some cases (for example investors) but has higher requirements. You can apply for Paraguayan citizenship after 3 years of permanent residency, so usually around 5 years after your first cédula. Citizenship requires basic Spanish and some knowledge of Paraguay's history and civics.

What about health insurance?

Paraguay has good private clinics (Sanatorio Migone, Hospital Italiano). International health insurance for expats runs roughly $110 to $440 per month depending on age and coverage. Local policies with providers such as Asismed or Migone Salud start at around $110 per month.

Can I retire to Paraguay?

Absolutely. Paraguay is popular with retirees. Thanks to the territorial tax system, a foreign pension is treated as foreign income and taxed at 0% in Paraguay in principle. Whether your home country still taxes that pension depends on its own rules, so check your side too. The low cost of living makes for a relaxed retirement.

Asunción is considered one of the safest capitals in South America. As anywhere, take normal precautions, but the crime rate is significantly lower than in many other Latin American metros.

Do I need to worry about my home country's tax?

Possibly. Your home country may tax you until you properly break tax residence there, and some countries have exit taxes or trailing-tax rules on business owners. This is separate from Paraguay's 0% and needs to be checked in your jurisdiction. We help with the Paraguay side and can point you to a qualified advisor for your home country.

You pay by bank transfer in USD (also internationally via Wise) or with crypto stablecoins (USDC/USDT, handled via Kast, no surcharge). Typically 50% on order and 50% when you receive your cédula, never everything up front. Government fees are billed separately. Our money-back guarantee applies if you are refused through no fault of your own. Full details are on the Payment page.

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For entrepreneurs

Paraguay for online entrepreneurs

If you run an online business, Paraguay offers a rare combination: a territorial tax system, a workable US LLC structure and a real second residency, without the cost and physical-presence burden of the usual zero-tax hubs.

Online entrepreneurs care about two things: keeping more of the profit, and doing it on a structure that banks and clients accept. Paraguay delivers on both. Foreign-source business income is untaxed in principle for a Paraguay tax resident, and the standard US LLC billing structure is clean, cheap to run and internationally recognized.

Compared with Dubai or Malta, Paraguay is far cheaper to live in and does not demand a large minimum investment or heavy presence just to hold your residency. For founders who want optionality, it also opens a path to a second passport in around five years.

If you are a US person, remember that the US taxes worldwide income regardless of residency, and self-employment tax can still apply. Paraguay does not change that. Plan with a US-qualified advisor and read the US-citizens guide first.

Key guides for entrepreneurs

Structure, tax residency and how Paraguay compares to the alternatives.

US LLC + Paraguay: The 0% Tax Structure for Nomads (2026)

A US LLC paired with Paraguay tax residency keeps online income foreign-source and, in principle, at 0%. Here is how the structure works end to end.

15 min read

Company Formation in Paraguay: SRL vs SA & Costs 2026

Company formation in Paraguay explained: SRL vs SA, the SUACE process, real costs in USD, local taxes, and when a US LLC beats a local company.

13 min read

Paraguay Tax System 2026: Territorial Tax, IRP, IRE, IVA

The Paraguay tax system runs on the territorial principle: IRP, IRE, IVA and the RUC explained, plus what actually applies to foreign residents in 2026.

14 min read

Paraguay Tax Residency: How 0% Territorial Tax Works (2026)

Paraguay tax residency can mean 0% tax on foreign income under territorial taxation. Here is how it actually works, and where people get it wrong.

15 min read

Bank Account in Paraguay: Requirements After Your Cédula

Opening a bank account in Paraguay after your cédula: the requirements, main banks, guaraní vs USD accounts, fees, and how it pairs with Wise.

12 min read

Paraguay vs Dubai vs Panama vs Georgia: 0% Tax Compared (2026)

Paraguay vs Dubai vs Panama vs Georgia for 0% tax: cost of living, residency time, citizenship, and investment compared, with an honest verdict for 2026.

13 min read

Recommended package

Premium full service $4,600

For founders who want it handled end to end: full support through permanent residency, tax registration, structure guidance and a personal concierge over two years. If you also need a Paraguayan company, ask about the company-formation add-on.

See all packages Book a free intro call

Frequently asked questions

Should I form a Paraguayan company or a US LLC?

For purely foreign income, most entrepreneurs use a US LLC and keep the Paraguay side to personal residency, so the territorial 0% applies. A Paraguayan company only makes sense if you have local customers or need local substance. We help you decide.

Is Paraguay better than Dubai for entrepreneurs?

It depends on your priorities. Dubai has zero personal tax and prestige but a high cost of living and a 9% corporate tax. Paraguay is far cheaper, has no minimum investment and offers a passport path. See the full comparison guide.

How long until I have residency and can restructure?

Typically 8 to 16 weeks to residency with a cédula. Structuring your business around it can start in parallel. Give yourself a few months of overlap and take advice before you break tax residence at home.

What about US founders?

US citizens and green-card holders stay on the hook for worldwide income and often self-employment tax. Paraguay still helps with cost of living and a second residency, but it is not a US tax exit. Read the US-citizens guide.

Want personal guidance?

In a free intro call we clarify your situation and the right path to Paraguay.

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