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 families

Paraguay for families

Paraguay is a calm, affordable and family-friendly base. You can settle the whole family on genuine residency, keep foreign income untaxed in principle, and give your children a slower, safer environment without a Western price tag.

Families weigh more than tax. They care about safety, schools, healthcare, space and cost of living, and Paraguay scores well on all of them: it is one of the safer countries in the region, has recognized private and bilingual schools in Asunción, and a cost of living far below most Western cities. On the tax side, foreign income remains untaxed in principle for a Paraguay tax resident under the territorial system.

The residency process covers the whole family, and children can be included, giving each family member a cédula and a path to permanent residency. With careful planning the family also moves toward a second passport over time.

One honest note: if a parent is a US citizen or green-card holder, US worldwide taxation still applies to that person regardless of residency. Read the US-citizens guide and take advice before assuming a 0% outcome.

Key guides for families

Residency for the whole family, tax residency and what to plan for.

Moving to Paraguay With Family: The 2026 Parent Playbook

Moving to Paraguay with family in 2026: residency and cédulas for spouse and kids, schools, healthcare, safety, and a realistic USD family budget.

13 min read

Paraguay Residency & Cédula: Step-by-Step Guide (2026)

Paraguay residency and the cédula, step by step: documents, apostille, Migraciones, the 2026 rules, and the path to permanent residency and citizenship.

15 min read

Schools in Paraguay: A Guide for Expat Families 2026

How do schools in Paraguay work for expat families? Compare public, private, and international schools, tuition in USD, and how children adapt.

12 min read

Best Neighborhoods in Asunción: Where to Live in 2026

The best neighborhoods in Asunción, from upscale Villa Morra to up-and-coming Mburucuyá: the vibe, who each suits, and approximate rents in USD.

13 min read

Cost of Living in Paraguay 2026: Real Asunción Numbers

What is the real cost of living in Paraguay in 2026? Here are honest monthly USD budgets for Asunción, from a single person to a family of four.

13 min read

US Citizens in Paraguay: Do You Still Owe US Tax? (2026)

US citizens and green-card holders owe US tax on worldwide income even in Paraguay. What FEIE, FBAR, and renunciation really mean for expats in 2026.

16 min read

Recommended package

All-in package $2,400

For families, the All-in package gives you cédula, residency, RUC tax registration and a rental contract, so both the immigration and the tax side are covered. We coordinate the family together and can add a school search on request.

See all packages Book a free intro call

Frequently asked questions

Can I bring my whole family to Paraguay?

Yes. The residency process covers spouses and children, and each family member receives a cédula and a path to permanent residency. We coordinate the family's applications together.

Are there good schools for expat children?

Asunción has recognized private and bilingual schools, including German-curriculum schools with international qualifications. Fees are far below comparable Western private schools. We can help with a school search.

Is Paraguay safe for families?

Asunción is considered one of the safer capitals in South America. As anywhere, take normal precautions, but many families find day-to-day life calmer and less pressured than at home.

What if one parent is a US citizen?

That parent remains subject to US worldwide taxation regardless of residency. Paraguay still helps the family with cost of living, safety and a second residency. Read the US-citizens guide and take US-qualified advice.

Want personal guidance?

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

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