Equipo ViaParaguay
In 2025, Paraguay granted 40,600 residencies to foreigners — a 42% increase year-on-year. That figure is not coincidental: it reflects the convergence of three simultaneous drivers. First, the territorial tax system (the so-called "10-10-10": maximum Personal Income Tax 10%, VAT 10%, Corporate Tax 10%), which does not tax foreign-source income. Second, macroeconomic stability — Paraguay is the only South American country with two investment-grade ratings simultaneously (Moody's Baa3 + S&P BBB-). And third, simplified migration for MERCOSUR-bloc nationals: Argentina, Brazil and Uruguay access a multilateral treaty that reduces documentation requirements and processing times. But the question most interested parties ask too late — and should ask first — is: is the process the same for my nationality?
The answer is no. The border-zone restriction (50 km from the territorial border) applies exclusively to nationals of countries sharing a land border with Paraguay: Argentina, Brazil and Bolivia. For an Argentine wanting to buy rural land in Concepción or Amambay, that rule is decisive. For a Spaniard or Chilean, no such restriction exists. The Double Taxation Treaty (DTT) is another differentiating factor: Paraguay has active treaties with Uruguay (since 2019), Spain (Law 7271/2024), Chile (since 2009), and others in progress. A Chilean with a bilateral DTT and no border-zone property restriction faces a radically different compliant tax-planning scenario compared to a Brazilian without one. Exit taxes also vary: Germany has the Wegzugsbesteuerung (tax on unrealised gains when emigrating), the United States taxes by citizenship worldwide including FATCA compliance, Brazil has the CSDP/DSDP regime and the recent Lei 15.270/2025 on overseas dividends. Each starting point defines a different strategy, and this index guide connects you directly to the specific guide for your country.
Paraguay's fiscal residency regime requires 120 days of physical presence in the fiscal year or a proven principal domicile — a notably lower threshold than the 183 days required by most European countries. Migration residency (temporary via MERCOSUR, permanent, or via the Investor Pass) is a separate procedure with its own timelines and fees. The correct process requires coordinating both streams — migration at the National Immigration Directorate (DNM) and fiscal at the National Tax Revenue Directorate (DNIT) — with the support of a licensed professional. The guides below break down that process with specificity by origin.
Guides by country of origin
Argentina — Exchange-rate gap, AFIP/ARCA and Bienes Personales
Argentina represents the second-largest flow of residencies granted by Paraguay in 2025 (4,366), driven by three simultaneous pressures: the exchange-rate gap eroding purchasing power in pesos, the regulatory burden of AFIP/ARCA on foreign assets and transactions, and the Bienes Personales (Personal Wealth Tax), which penalises assets held abroad. Paraguay offers a permanent territorial system, MERCOSUR migration access, and no border-zone restriction for urban properties. Argentines purchasing rural land within 50 km of the border must comply with specific restrictions.
Read the full guide for Argentines →
Brazil — The largest community; Receita Federal and Lei 15.270/2025
Brazil ranks #1 in Paraguayan residencies granted in 2025 with 23,526 — more than half the total. The Brazilian community is the largest in the country, with a strong presence in the agricultural and commercial sectors. The migration process follows the simplified MERCOSUR route, but the fiscal exit from Brazil is complex: it requires deregistration with the Receita Federal via CSDP or DSDP, and the recent Lei 15.270/2025 imposes an additional 8% tax on dividends distributed abroad from Brazil. Without a bilateral DTT between Brazil and Paraguay, compliant tax planning requires careful structuring. Brazilians are also subject to the border-zone restriction (50 km) for rural property acquisition.
Read the full guide for Brazilians →
Spain — Fully in-force DTT + comparison with the Beckham Plan
Spain holds a unique position: it is the only European country with a fully in-force DTT with Paraguay (Paraguayan Law 7271/2024, entered into force 2024), which eliminates double taxation on Spanish-source income received by Paraguay residents. Combined with the expiry of Impatriate Regime ("Beckham Plan") benefits for those who have been in Spain more than 6 years, Paraguay emerges as an alternative with lower structural tax burden. No border-zone property restriction, no exit tax equivalent to the German one, and a migration process via the ibero-American nationals route (a bilateral Spain-Paraguay agreement in addition to the indirect MERCOSUR pathway).
Read the full guide for Spaniards →
Uruguay — Honest comparison against the 11-year tax holiday
Uruguay has its own 11-year tax holiday regime (Law 19.937) that exempts IRPF (Personal Income Tax) on foreign financial income for new fiscal residents. For many Uruguayans, Paraguay is not the immediate first choice — and that is correct. But three profiles genuinely make sense for Paraguay: those nearing the end of the holiday (years 10-11), those who do not qualify due to the UI 15,000,000 real estate threshold (~USD 1.5M), and those seeking a permanent territorial regime with no expiry date. The Uruguay-Paraguay DTT (Law 19.697, in force since 2019) governs fiscal residency tie-breaking when a person could qualify in both countries, and includes a tax information exchange mechanism.
Read the full guide for Uruguayans →
United States — Citizenship-based taxation, LLC structure and FATCA/Form 8854
The United States is one of only two countries worldwide (alongside Eritrea) that taxes its citizens on worldwide income regardless of where they live. This means a US citizen residing in Paraguay still files an annual return with the IRS, reports foreign accounts (FBAR/FATCA), and — if renouncing citizenship — must go through the expatriation process (Form 8854, "exit tax" if net worth exceeds certain thresholds). Paraguay complements this with: low cost of living, a simple tax regime, a pass-through LLC structure that is fiscally transparent, and a relatively straightforward migration process. The key is the correct corporate structure and coordination with a US CPA specialised in expatriates.
Read the full guide for Americans →
Germany — Wegzugsbesteuerung and the Mennonite community
Germany has Europe's most robust exit tax: the Wegzugsbesteuerung (§6 AStG) taxes unrealised capital gains on corporate participations exceeding 1% at the moment of emigration — before those gains are even realised. For Germans holding stakes in GmbH, AG or funds, pre-departure planning is critical. Paraguay is home to one of the world's largest Mennonite communities (Alto Paraná, Boquerón, Guairá regions), facilitating integration for people of German origin. Germany ranked third in 2025 Paraguayan residencies (1,652), reflecting both individual demand and the ongoing historical Mennonite flow. No Paraguay-Germany DTT is currently in force (negotiations are ongoing).
Read the full guide for Germans →
Chile — DTT in force since 2009, no border-zone property restriction
Chile is one of the cases with the strongest structural position for fiscal relocation to Paraguay: it has a bilateral DTT in force since 2009 (one of the oldest in Paraguay's treaty network), shares no land border with Paraguay (completely eliminating the 50 km border-zone restriction for properties), and its worldwide income tax regime with marginal rates up to 40% creates a powerful differential against Paraguay's territorial 10-10-10 regime. The Chilean community in Paraguay is growing, particularly in Asunción and agro-industrial investment zones. The flight distance (Santiago–Asunción, approximately 3h30) makes meeting the 120-day physical presence requirement logistically accessible.
Read the full guide for Chileans →
Bolivia — Full MERCOSUR membership, dollar shortage and geographic proximity
Bolivia ranked fourth in Paraguayan residencies granted in 2025 (1,357), with a flow driven by urgent economic factors: the dollar shortage in Bolivia's domestic market, the risk of renewed banking restrictions, and accumulated macroeconomic instability. Bolivia has been a full MERCOSUR member since 2024, allowing its nationals to access the simplified migration process for temporary Paraguayan residency. Geographic proximity is minimal (Santa Cruz de la Sierra is just 1h45 from Asunción by direct flight), facilitating compliance with the physical presence requirement. Bolivia shares a border with Paraguay, so the 50 km restriction applies to rural border-zone properties.
Read the full guide for Bolivians →
Common technical guides (for all nationalities)
Beyond the nationality-specific nuances, the Paraguayan process has common elements that apply regardless of origin. These technical reference guides cover the core mechanisms:
- Step-by-step fiscal residency process: How to apply for the fiscal residency certificate from the DNIT, counting the 120 days, required documents, timelines and costs. → Tax residency in Paraguay: full 2026 process
- Visa, residency and citizenship types: A complete map of Paraguay's immigration system — MERCOSUR temporary residency, permanent residency, investment-based residency, naturalisation, and differences between each category. → Visa, residency and citizenship in Paraguay: guide for migrants
- Real cost of living in Paraguay 2026: Rents, food, private healthcare, international education, utilities and transport — with comparisons between Asunción and other cities. → Cost of living in Paraguay 2026: Asunción and main cities
- The 120 days and the DNIT certificate: How days of presence are counted, when to file the application, and what happens if the threshold is not met. → Fiscal residency in Paraguay: the 120-day rule and the DNIT certificate
- Paraguay Investor Pass: Direct permanent residency through investment (from USD 70,000) without going through temporary residency — four modalities, timelines, requirements and advantages. → Paraguay Investor Pass: permanent residency through investment 2026
How to use this index
The most efficient route is: (1) read the guide specific to your nationality to understand your fiscal and migration starting point, (2) complement with the common technical guides depending on which phase of the process you are in, and (3) consult with a licensed professional in Paraguay — a migration lawyer or an accountant specialised in international taxation — before making decisions involving significant assets, corporate structures or a change of fiscal residency. The cost of getting it wrong far exceeds the cost of getting it right.
Paraguay is a legitimate, stable and growing jurisdiction. A change of residency is a regulated process — tax planning with full regulatory compliance, not avoidance or evasion. That distinction is essential, both legally and in your relationship with your country of origin's tax authorities.
If you have questions about your specific case, you can contact us and we will arrange a no-obligation initial consultation with the ViaParaguay team.
This guide is informational and reflects legislation in force at the time of writing. It does not constitute personalised legal, tax or immigration advice. For your specific case, consult with professionals licensed in Paraguay and in your country of origin.