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Tax residency in Paraguay

Paraguay's territorial tax system is one of the most attractive in the region. We explain the full 2026 process — requirements, timeline and costs — to get your residency and set your tax situation in order.

  • Territorial system: 0% on your foreign-source income
  • Residency in 4-6 months; national ID and RUC to operate and open bank accounts
  • Supported by verified lawyers and advisors from the directory
Key facts

Why are so many people choosing Paraguay?

Stability, low taxes and growth — the combination attracting investors and expats from across the region.

+8%
An economy on the rise
Real GDP grew 6.6% in 2025, nearly tripling the regional average (Banco Central del Paraguay).
IG
Investment grade confirmed
Moody's (2024) and S&P (2025) lifted Paraguay to investment grade.
0%
Zero tax on foreign income
100% territorial system: foreign-source income is not taxed in Paraguay (PwC).
24°C
Warm climate, green and calm surroundings
Subtropical, temperate winters (15-25°C), three diverse eco-regions and a leafy capital. One of South America's calmest regions, with low urban density.
+700M
MERCOSUR + landmark deal with the EU
Preferential access to 290M MERCOSUR consumers and 450M Europeans: the 2024 bi-bloc agreement opens one of the world's largest markets.
100%
World's cheapest clean energy
Largest net hydropower exporter per capita. Itaipú and Yacyretá supply 25% of the state's foreign currency.
1%
Ultra-competitive Maquila regime
1% single tax on value added. Inputs imported duty- and VAT-free. 300+ companies, 29,000 jobs (Law 7547/2025).
6–8%
Solid USD real estate yields
6 to 8% annual rental yields on traditional Asunción properties, with an upward trend.

* Reference data 2025–2026. Get in touch for your specific situation.

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