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.

Back to home

For retirees

Paraguay for retirees

Paraguay is a quiet, affordable and increasingly popular retirement base. A foreign pension is treated as foreign income and, in principle, not taxed in Paraguay, while your money simply goes much further.

For retirees, Paraguay's appeal is practical: a warm climate, low cost of living, decent private healthcare and a straightforward residency you can actually keep with minimal presence. Under the territorial system, a foreign pension is foreign income and is not taxed in Paraguay in principle.

Whether your pension is still taxed at home depends on your home country's rules, so check that side too. What Paraguay reliably changes is your day-to-day cost of living: a comfortable life in Asunción runs far below most Western capitals, which stretches a fixed pension considerably.

Retirees go through the same cédula process as everyone else, with the advantage of a simpler profile and no need to prove business activity. If you are a US citizen, note that US taxation of worldwide income still applies, so read the US-citizens guide.

Key guides for retirees

Tax on a foreign pension, the residency process and what to plan for.

Retire in Paraguay: A Practical Guide for Retirees

Thinking to retire in Paraguay? Here is the honest picture: residency, a pension that stretches in USD, healthcare, climate, and the real downsides.

12 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

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

Health Insurance in Paraguay: Costs & Options (2026)

Your guide to health insurance in Paraguay: public vs private, local clinic plans, international expat cover, real USD costs, and how to choose well.

14 min read

Move to Paraguay: Step-by-Step Relocation Guide 2026

Move to Paraguay in 2026: the complete step-by-step relocation guide covering documents, tax residency, the trip, your cédula, and settling in.

16 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

Starter package $1,800

For most retirees the Starter package is enough: full support to your cédula and residency, including sworn translations and in-person help at every office. If you also want a tax-residency certificate, the All-in package adds RUC registration.

See all packages Book a free intro call

Frequently asked questions

Is my foreign pension taxed in Paraguay?

In principle, no: a foreign pension is foreign income and is not taxed under Paraguay's territorial system for a Paraguay tax resident. Whether your home country still taxes it depends on its own rules, which you should check separately.

How much do I need to live comfortably in Paraguay?

A comfortable single lifestyle in Asunción runs roughly $1,200 to $1,700 a month, including rent, food, transport and leisure. Outside the capital it is lower. This makes a fixed pension go a long way.

Is healthcare good enough for retirees?

Paraguay has solid private clinics such as Sanatorio Migone and Hospital Italiano. Private or international health insurance for expats runs roughly $110 to $440 a month depending on age and coverage.

I'm a US retiree. Does Paraguay reduce my US tax?

Not on its own. The US taxes citizens on worldwide income including pensions and investments, regardless of residency. Paraguay helps with cost of living and a second residency. Read the US-citizens guide.

Want personal guidance?

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

Book a free intro call