Establishing in Paraguay: benefits, what to know, permits, costs
Although Paraguay has no coastline, it boasts many stunning natural attractions. A more practical reason why settling in Paraguay might be an attractive option for you is Paraguay's tax regime, which is very favourable. There are a number of questions you may have about obtaining a Paraguay permanent residence permit if you are looking to move to Paraguay. These are all answered in this article.
Benefits of settling in Paraguay: when is it a good option?
Here are some of the advantages that make Paraguay a popular destination for foreigners.
- Paraguay's stable economy and low inflation make it a good investment environment for you. The country also offers special visa support for investors.
- The cost of living is low by world standards. Electricity is very cheap in Paraguay, which is one of the world's largest renewable energy-rich countries.
- European country, the majority of the population are descendants of immigrants from Germany.
- Paraguay's GDP is growing at an average annual rate of 4.51TP$3T and significant investment is expected to continue over the next decade. This continued growth is attracting international companies, making it easier to find work in the country.
- Paraguay has a favourable tax system. As a Paraguayan taxpayer, you will pay corporate and personal income tax of 10%, and VAT of 10% only. In addition, you only have to start paying income tax on income of 22 500 $. Starting a business in Paraguay is considered globally simple and cheap to run.
- Your income from abroad is tax-free in Paraguay. If you have international clients, you'll have a lot more in your pocket.
- Once you have obtained a permanent residence permit, you only need to spend 1 week in Paraguay every 3 years to keep your permit. So it's no problem if you travel a lot, for example as a digital nomad.
- If you also obtain a Paraguayan identity card, you can travel freely to Mercosur countries such as Argentina, Brazil, Venezuela and Peru. Mercosur stands for the South American Common Market.
Step-by-step procedure for settling in Paraguay
Paraguayan immigration law has changed as of 18 October 2022. So, to settle in Paraguay, you must first apply for a temporary residence permit, and after 2 years you can apply for a permanent residence permit.
Conditions for settling in Paraguay
You must have a clean bill of health, but there are no other restrictions. Paraguay welcomes qualified professionals and investors. As a Hungarian citizen, you do not need a tourist visa to leave Paraguay, you can stay in Paraguay visa-free for 90 days. This can be extended once with the Paraguayan Aliens Police at the central office.² After 180 days, you must obtain a residence permit. You can apply for a permanent residence permit, i.e. a settlement permit, after 2 years.
Investor visa conditions³
The Paraguay Permanent Residency Program allows you to obtain permanent residency in Paraguay if you promise to invest at least $70,000 in the country over 10 years. To apply for a visa, you must meet the following conditions:
- You must be a citizen of a country that has a reciprocal visa agreement with Paraguay. Luckily, Hungary is one of them.
- 27 500 $ to invest in a Paraguayan business or property.
- You must submit a business plan showing how the investment will create jobs or at least economic activity in Paraguay.
- Once you have invested the required amount, you will be granted permanent residence in Paraguay.
Digital nomad visa conditions
- You must be a citizen of a country that has a reciprocal visa agreement with Paraguay, such as Hungary.
- You must have a valid passport.
- You must have a clean criminal record.
- You must prove that you can support yourself financially.
- You need a medical check-up to prove that you are in good health.
After two years of residence, you can of course apply for a permanent residence permit.
Work visa conditions
The work visa is valid for 12 months and can be renewed up to 5 times. Application requirements:
- You need a passport valid for at least 6 months,
- You must have a job offer or a work contract from a Paraguayan employer,
- You must prove your ability to pay,
- You must have a clean criminal record,
- You must be in good health.
Obtaining a Paraguay permanent residence permit
You must start the process in your own country. As soon as you arrive in Paraguay, you can start applying for temporary residence. Let's look at the process in detail.
Steps to doing business in your own country
- The first step is to obtain a document proving your criminal record.
- You must request a recent birth certificate.
- The papers received are consular services be certified. The documents are stamped with an apostille.
- An official translation of the documents already certified must be provided.
- Have at least 6 ID photos taken of yourself.
- With your permanent residence permit in hand, it's a good idea to change your address at your bank to change your Paraguayan tax residence.
The process can take a long time, so it's worth checking how long the documents you receive are valid. When you arrive in Paraguay, you may find that you don't have much time left to submit them. That's why smooth administration can be a lifesaver during the Paraguay resettlement process, and our expert team can help you with this.
Steps to doing business in Paraguay⁴
- You must send certified translations from home to the immigration lawyer. You may also need to have the translations certified locally.
- You will need to go to the Interpol regional office in Asunción, where your international criminal history will be checked. There they will fingerprint you and issue a certificate. They will also check your criminal record at the local police station. You will have to give a notarised affidavit stating that you will abide by Paraguayan law.
- You will then need to make a temporary deposit of a living security at the Central Bank of Paraguay or any local commercial bank. Currently this is the equivalent of around €4,500. Once you have your residence permit, you can withdraw the deposit in full.
- You will also need a Paraguayan address, which you can also report to the police. We can also help you get an address.
- Then the Paraguayan immigration office take all the documents you have received and fill in the application form for a residence permit.
- The permit process starts. The application process can take at least one and a half months, but can take up to 2-3 months.
- To start a business, you will also need a business tax number to be able to invoice.
- You can apply for a permanent residence permit after two years. To apply for this, you will need to take all the documentation for your residence permit with you and replace any that has expired. For example, you will need a local copy of your certificate of good conduct. The permanent residence permit is permanent but must be renewed every 10 years.⁵
Time to do business in person in Paraguay
The maximum duration of the aliens' procedure for obtaining a temporary residence permit in Paraguay is 90 days. However, delays may occur due to the high number of applicants. It takes exactly the same time to obtain a Paraguayan Permanent Residence Permit, after two years of temporary residence.
You will need to appear in person at least twice in Paraguay, once to apply for a residence permit and then for an identity card. The first application takes about 5 working days. You may not submit the documents correctly, so it is better to allow 10 working days. If you entrust the resettlement to a team of experts, you can be sure that all your documents will be accepted. If you don't want to come back 2x, our staff can pick up your completed ID card with a power of attorney and send it by courier.
You have 90 days after the expiry of the temporary residence permit to apply for a permanent residence permit and a further 6 months to obtain an identity card. The administrative time required to apply for an ID card is 2 days maximum. After that, it is sufficient to visit Paraguay at least once every three years for a few days. You must also travel to Paraguay to renew your permit or obtain a permanent residence permit.
Costs of setting up in Paraguay
Seamless resettlement abroad with expert assistance will cost you a total of €3500, which includes fees related to the immigration procedure, Interpol international verification, the necessary ID card application, its submission, all legal procedures related to the resettlement permit in Paraguay.
Our experienced staff are ready to assist you with fast, reliable, discreet and professional administration of your permanent establishment in Paraguay.
Our team will provide you with full assistance with resettlement in Paraguay, saving you unnecessary hassle and costs. If you entrust yourself to our expert team, all you need to do is show up and sign, and of course we'll help you with your travel.
Among other things, you can count on us for the following tasks:
- Immigration assistance to Paraguay
- Translation of English documents by an official Paraguayan translator
- Apply for a Paraguayan residence permit and identity card
- Pick up from your hotel in Paraguay to the immigration office and other administrative locations
- Collecting local documents for temporary or permanent residence in Paraguay
- Proof of local address for temporary or permanent residence in Paraguay
- Business start-up and sole proprietorship, expert assistance on tax residency
To summarise Paraguay, what you need to know about the Paraguayan residence permit and its benefits.
There can be many advantages to settling here, such as a favourable tax regime, a low cost of living and extensive travel opportunities. However, the paperwork can be a lengthy and complicated process, and it's easy to get lost in the maze of red tape, except with the help of an experienced agent.
We recommend it mainly for those who want to travel as a digital nomad and not incur tax liabilities in any country. This allows you to be completely tax-free in a completely legal way by using different company structures. As the country is safe and friendly, there are also plenty of opportunities for those who want to settle abroad.
We're ready to use our experience and legal expertise to facilitate and speed up the process of settling abroad, so you can enjoy life in Paraguay smoothly.