Paraguay is one of the easiest and quickest countries to get resident status. It is also very tax friendly for individuals and businesses. There is no income tax on income sourced from outside of Paraguay. And the corporate tax rate is 10% of net profit.
There are two ways to get residency. One, is to apply for a temporary residence permit and the second way is to apply for a permanent residence permit.
A temporary residence permit is valid for two years. It can be renewed or converted to a permanent residency after 21 months. Basically, anyone without a criminal record or criminal charges pending is eligible.
There are two pays to get permanent residency. The easiest way is to first obtain a temporary residence permit and then after 21 months, you can apply to have to have it converted to a permanent residence. The second way is to invest $70,000.00 in a business that will employ at least 5 people. A permanent residence permit is valid for 10 years and can be renewed. After three years as a permanent resident, you can apply to become a citizen.
You don’t have to physically live there to get residency status. You do have to visit at least once every three years.
If you’re a digital nomad or operate a business that generates income from outside of Paraguay it may make sense to establish residency there for tax purposes.
If you are interested in establishing tax residency in Paraguay or another country click here.