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. 

Source: freepik.com

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.

Source: freepik.com

Paraguay ideiglenes letelepedési engedély megszerzése

source: istockphoto.com

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

1. The first step is to obtain a document proving your criminal record.
2. You must request a recent birth certificate. 
3. The papers received are consular services be certified. The documents are stamped with an apostille.
4. An official translation of the documents already certified must be provided.
5. Have at least 6 ID photos taken of yourself.

Az ügyintézés elhúzódhat, ezért érdemes ellenőrizni, hogy meddig érvényesek a kapott papírok. Előfordulhat, hogy Paraguayba érkezve kiderül, már nem sok időd marad a benyújtásukra. Például a magyar erkölcsi bizonyítvány csak 3 hónapig érvényes, ezért jól kell időzíteni a kérvényezését. Éppen ezért a Paraguay letelepedési folyamat során életmentő lehet a gördülékeny ügyintézés, amiben szakértő csapatunk tud neked segíteni.

Steps to doing business in Paraguay⁴

1. Az otthonról hozott hitelesített fordításokat át kell adnod a bevándorlási ügyvédnek.
2. El kell menned az Interpol Asunciónban található regionális irodájába, ahol a nemzetközi bűnügyi előéletedet vizsgálják. Itt ujjlenyomatot vesznek tőled, majd kiállítanak egy bizonyítványt.
3. Szükséged lesz még orvosi igazolásra, a nemzeti rendőrségtől egy igazolásra, és még néhány papírra. De ezeket az ügyintézőnk segítségével egyben, egy nap alatt elintézheted.
4. Ebben a lépésben még nem lesz szükséged paraguayi lakcímre, azt mi biztosítjuk. Külön paraguayi lakcím majd csak vállalkozásindításhoz és bankszámlanyitáshoz kell.
5. Then the Paraguayan immigration office el kell vinni az összes kapott papírt, és kitölteni a tartózkodási engedély igényléséhez szükséges kérvényt. Kinti ügyintézőnk ekkor elkísér.
6. The permit process starts. The application process can take at least one and a half months, but can take up to 2-3 months.
7. Az ideiglenes letelepedési engedély dátumától számított 1 éven belül legalább egyszer az országban kell tartózkodnod. Nem telhet el több, mint egy év külföldi tartózkodással.
8. 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.

Az ideiglenes tartózkodási engedély lejárata előtti 90 napon belül lehet jelentkezni a letelepedési engedély megszerzésére, de legkésőbb a lejárat előtti napon. Az ideiglenes tartózkodási engedély megszerzése után lehet jelentkezni a személyi igazolványért, aminek elkészülte általában 1 hónapot vesz igénybe. A személyi igazolvány igényléséhez szükséges ügyintézési idő legfeljebb 2 nap. Ezt követően elegendő három évente legalább egyszer megjelenni Paraguayban pár napra. Emellett az engedély meghosszabbítására vagy az állandó tartózkodási engedély megszerzésére is mindenképpen Paraguayba kell utaznod.

Costs of setting up in Paraguay

Zökkenőmentes külföldi letelepedés szakértő segítséggel összesen 2500€ költséggel kell számolni, mely tartalmazza az idegenrendészeti eljáráshoz kapcsolódó illetékeket, az Interpol nemzetközi ellenőrzését, személyi igazolvány szükséges kérelmet, annak benyújtását, minden letelepedési engedéllyel kapcsolatos jogi ügyintézést Paraguayban.

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
• Apply for a Paraguayan residence permit and identity card
• 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'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.

Sources:

1. Embassy of Hungary in Buenos Aires - Economy of Paraguay

2. Consular Information - Paraguay - Travel Information 

3. Paraguay Immigration Office - Investor residence permit

4. Paraguay Immigration Office - Procedure for applying for a temporary residence permit

5. Paraguay Immigration Office - Procedure for applying for a permanent residence permit