Spaniards in Paraguay 2026: DTT + Residency Guide

In the first quarter of 2026, Paraguay's National Immigration Directorate granted 373 residencies to Spanish citizens — Spain ranked fourth by approvals (2.6% of the total). Over 2025, 1,023 Spaniards obtained Paraguayan residency. Modest figures compared to Argentines or Brazilians, but with a key distinction: Spain is currently the only European country with a fully in-force Double Taxation Treaty with Paraguay.

Law 7271/2024 (the Spain-Paraguay DTT) entered into force on October 14, 2024 and produces tax effects from January 1, 2025. That changes the calculation for any Spanish citizen considering relocation — because the framework is settled, written, and published in the Spanish Official Gazette (BOE-A-2024-15573).

This guide walks through the actual 2026 process for Spaniards: what Paraguayan law requires, what Spain's tax agency (AEAT) demands when you leave, how the DTT operates in practice, what the Paraguay Investor Pass offers, and how all of this compares with Spain's "Plan Beckham" (Beckham Law / impatriate regime) that many contemplate as an alternative.

Why a Spaniard would choose Paraguay in 2026

The historical flow of Spaniards to Paraguay is not massive, but specific drivers have revitalized it:

Spain-Paraguay DTT in force. Law 7271/2024 covers IRPF, IRNR (Spain) and INR, IRP, IRE, and IDU (Paraguay). This reduces fiscal uncertainty — there are no longer gray zones on cross-border dividends, interest, royalties, or pensions.
Paraguay's territorial taxation system. Paraguay only taxes Paraguayan-source income. Dividends from Spanish or European companies, capital gains outside Paraguay, interest from accounts in other jurisdictions — generally not taxed in Paraguay (subject to qualification on case-by-case basis).
No Paraguayan wealth tax. Paraguay does not levy an equivalent to Spain's Impuesto sobre el Patrimonio (which in some autonomous communities can be onerous for high net worth). There is also no equivalent to Spain's Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones).
Dual Citizenship Convention of 1959. In force since February 10, 1960, amended by the 1999 Additional Protocol, it allows Spaniards by origin to acquire Paraguayan citizenship without losing Spanish citizenship. It is a unique legal inheritance — Argentines or Brazilians do not have an equivalent bilateral instrument.
Consolidated macro stability. Paraguay achieved Moody's Baa3 investment grade in July 2024 and an upgrade to BBB- from S&P in December 2025. First South American country with two investment-grade ratings.
Direct air connectivity. Air Europa and LATAM operate Madrid–Asunción nonstop (~12h35, around 4 flights/week). No need to transit through Buenos Aires or São Paulo.

All of this operates within the legal framework — fiscal planning with regulatory compliance, not tax evasion.

Is it legal? The framework on both sides

Paraguay: the framework that welcomes you

Paraguay's Migration Law 6984/2022 reformed the immigration regime. Unlike Argentines or Brazilians, Spaniards do not have the MERCOSUR shortcut: they must process residency via the general path of Law 6984/2022 or via the Investor Pass route (covered below). Tax residency is acquired separately under the territorial principle of Law 6380/2019: 120 days of physical presence during the fiscal year, or principal domicile established locally.

Spain: exiting Spain tax-wise

The Spanish system considers a person a tax resident if any of the following criteria are met (Art. 9 of the Personal Income Tax Law):

Spending more than 183 days in Spain during the calendar year, or
Having in Spain the main center or base of activities or economic interests, directly or indirectly, or
Having a non-separated spouse and minor children residing in Spain (legal presumption).

To lose this status and be treated as a non-resident, you must accredit new tax residency abroad (Paraguay, in this case) and notify the change to AEAT (Spain's tax authority) through Form 030 / Modelo 030. This is a regulated process — not tax evasion. It's a procedure explicitly contemplated by AEAT itself.

The Spain-Paraguay DTT (Law 7271/2024): the critical points

Signed in Santo Domingo on March 25, 2023, approved by Paraguay (Law 7271) on May 29, 2024, ratified by Spain on July 29, 2024, it entered into force on October 14, 2024. It produces tax effects from January 1, 2025.

It covers the following taxes:

Paraguay: IRP (Personal Income Tax), IRE (Corporate Income Tax), INR (Non-Resident Income Tax), and IDU (Dividend and Profit Tax).
Spain: IRPF (Personal Income Tax) and IRNR (Non-Resident Income Tax).

Practical implications (summarized — full text in BOE-A-2024-15573):

Reduces maximum source withholding rates for cross-border dividends, interest, and royalties.
Establishes tie-breaker criteria for tax residency when a person could qualify in both countries.
Double-tax-elimination mechanism: Spain generally applies the credit method; Paraguay, by its territorial nature, does not need to eliminate taxation on income it already does not tax.
Tax-information exchange clauses between AEAT and DNIT (important: the DTT is not opacity; the tax authorities can cross-check data).

The DTT does not eliminate formal obligations — you still need to file the AEAT departure, present Form 720 while it applies, and declare correctly. What it does eliminate is interpretive uncertainty.

Dual Citizenship Convention of 1959

Signed June 25, 1959 in Madrid, in force since February 10, 1960 (BOE 1960). Amended by the Additional Protocol signed in Asunción on June 26, 1999 (in force March 1, 2001, Paraguayan Law 1667/2001). The convention allows Spaniards by origin to acquire Paraguayan citizenship — and reciprocally — without losing the previous one. Paraguayan citizenship is obtained by naturalization after a period of legal residence (generally 3 years) plus other requirements of the Paraguayan Civil Code.

The Paraguayan process for Spaniards

Two main routes:

Option A: Temporary then Permanent Residency (Law 6984/2022)

The traditional path. Documentation:

Spanish birth certificate, apostilled by the Consular Section of the Spanish Foreign Ministry.
Spanish criminal background certificate (Ministry of Justice), apostilled, less than 90 days old.
Paraguayan criminal background certificate (obtained in Paraguay).
Valid Spanish passport.
Proof of means of subsistence (employment, professional, business, or rentier — passive income).
Proof of domicile in Paraguay.
Payment of migration fee.

Important advantage for Spaniards: no sworn translation required, since all documentation is in Spanish. Savings of USD 200-500 versus processes with documents in other languages.

Option B: Paraguay Investor Pass (direct permanent residency)

The April 2026 program (MIC Resolution No. 0283/2026) offers direct permanent residency without passing through Temporary. Four investment routes:

USD 70,000 in productive investment with a business plan and commitment to create 5 formal jobs.
USD 150,000 in the tourism sector (hotels, lodges) with a business plan and semi-annual reports.
USD 200,000 in urban real estate (minimum 30% paid upon filing).
USD 200,000 in financial instruments listed on the Asunción Stock Exchange (minimum 2-year holding).

Investor certificate issued in 5 business days from complete file. Only 1 visit every 3 years to maintain active status. Details: Paraguay Investor Pass: direct permanent residency by investment.

Paraguayan tax residency (separate process)

Migration residency does not automatically equal tax residency. For DNIT (Dirección Nacional de Ingresos Tributarios — Paraguay's tax authority) to issue the tax residency certificate, you need at least 120 days of physical presence in Paraguay during the fiscal year or an established principal domicile. Deep dive: Paraguay tax residency: the 120-day rule and DNIT certificate.

The Spanish process: AEAT correctly

When Spanish tax residency is lost

When any of these conditions is met (i.e. the opposite of the criteria in Art. 9 LIRPF):

Spending fewer than 183 days in Spain during the calendar year, AND
Not having the center of economic interests in Spain, AND
Not having a non-separated spouse or minor children residing in Spain (or successfully rebutting the legal presumption with contrary evidence).

AEAT may request proof: plane tickets, Paraguayan lease contracts, utility bills (ANDE, ESSAP, Tigo, Copaco), Paraguayan banking history, school enrollment of children in Paraguay, Paraguayan health insurance. Keeping records from day one is far cheaper than reconstructing them during an inspection.

The formal procedure: Modelo 030

Access AEAT's Electronic Headquarters with electronic certificate, electronic National ID (DNI electrónico), or Cl@ve PIN (Spain's digital identity system).
File Modelo 030 (Form 030). In "Identification data" → "Residence indicator" → select Code 1: "Does not meet Article 9.1" — this activates the IRPF deregistration.
Indicate the new tax domicile (in Paraguay).
Deadline: three months from the effective change of residence.
Effective date: if the change occurs in the first half of the year and you have not exceeded 183 days in Spain, the deregistration takes effect from January 1 of the same year. If you exceeded 183 days, it takes effect from January 1 of the following year.

The Modelo 720 while you remain a resident

While Spanish tax residency is maintained, there is an obligation to declare assets and rights abroad exceeding EUR 50,000 per block via the Modelo 720. The three independent blocks are:

Accounts in foreign financial institutions.
Securities, rights, insurance, and income deposited or managed abroad.
Real estate and rights over real estate located abroad.

Once you lose Spanish tax residency, this obligation ceases. But the final 720 declaration before exit must be filed correctly.

Plan Beckham vs Paraguayan residency: honest comparison

Many Spaniards considering fiscal optimization weigh the Plan Beckham (special impatriate regime, Art. 93 LIRPF) before going abroad. Honest comparison:

Criterion	Plan Beckham (Spain)	Paraguayan tax residency
Duration	6 years (arrival year + 5 following)	Permanent (as long as residency is maintained)
Work income in Spain	24% flat up to EUR 600,000 (47% above)	Not applicable (not a Spanish resident)
Foreign income	Generally exempt in Spain during the regime	Generally not taxed in Paraguay (territorial system)
Wealth Tax	Exempt during regime on global assets	No Paraguayan equivalent
Modelo 720	Exempt during the regime	Not applicable (not a Spanish resident)
End of regime	Year 7: global income, global wealth, and Modelo 720 trigger simultaneously (the "year-7 cliff")	No equivalent cliff
Cost of living	Madrid, Barcelona — high	Asunción — low (premium rent from USD 400)

Plan Beckham is excellent for executive profiles already in Spain with high salaries for 6 years. Paraguayan residency is better for profiles with significant international wealth (high net-worth individuals), foreign passive income, or those who want a fiscal structure sustained beyond 6 years. They are not mutually exclusive: some take advantage of Beckham first and then move to Paraguay (planning the cut to avoid the cliff).

Your Spanish assets after the move

Spanish real estate: remains in your name. Pays IBI (municipal property tax). If rented, the rental is subject to IRNR (general rate 19% for EU residents, 24% for non-EU — Paraguay is non-EU, applies 24% unless the DTT modulates the rate for specific income types).
Wealth Tax: non-residents pay in Spain on a real-obligation basis (only on assets and rights located in Spain). General exempt threshold is EUR 700,000 of net wealth situated in Spain. Some autonomous communities have bonuses.
Spanish bank accounts: technically maintainable, but many banks apply stricter policies for non-residents.
Spanish public pensions: can be received while residing in Paraguay. Spain and Paraguay have a Social Security Convention (BOE 2008) recognizing contribution time in both systems.
Dividends from Spanish companies: taxed under IRNR with source withholding. The DTT may reduce the maximum rate. Check the specific DTT text by income type.
Spanish pension plan: on redemption, taxation depends on tax residency at the moment of payout. Planning the redemption before or after the change can significantly change the result.

What it actually costs (2026 figures)

Item	Approximate cost
Hague Apostille (Spain): birth certificate + background	EUR 50–120
Direct Madrid-Asunción flight (one-way, mid-season)	EUR 450–700
Paraguayan residency fee (Permanent or Investor Pass)	USD 380–600
Paraguayan legal counsel (qualified)	USD 600–1,500
ES-PY tax advisory with DTT knowledge (recommended)	USD 800–2,500
Modelo 030 + final IRPF/720 advisory	EUR 400–1,200
Temporary housing Asunción (3-6 months transition)	USD 1,200–3,000
Total estimate	USD 3,900–9,500 (≈ EUR 3,600–8,800)

Common Spanish mistakes

Not filing Modelo 030. You move, you get Paraguayan residency, but you remain a Spanish tax resident before AEAT.
Assuming the DTT eliminates formal obligations. The DTT prevents double taxation but does not exempt you from filing Modelo 030, Modelo 720 (while you are resident), or the final IRPF for the year of departure.
Confusing migration residency with Paraguayan tax residency. Holding the Paraguayan Permanent ID or Investor Pass does not automatically make you a Paraguayan tax resident — you need the 120 days or established principal domicile.
Remaining more than 183 days in Spain in the change year. Triggers Spanish tax residency that year, delaying effective deregistration.
Forgetting the center of vital interests test. Even with fewer than 183 days in Spain, if your spouse or minor children reside there, the legal presumption of residency activates.
Not filing the last Modelo 720. The year of departure, while resident, retains the obligation.
Hiring unlicensed gestores (informal agents).
Investor Pass without advisory. The 4 routes have specific requirements (business plan, jobs, holding periods).

Living in Asunción as a Spaniard

Language: zero barrier. Spanish is an official language of Paraguay alongside Guaraní. Everyday, legal, and commercial life is fully accessible in Spanish.
Connectivity with Spain: Air Europa and LATAM operate Madrid–Asunción nonstop (~12h35, around 4 flights/week). Fares from EUR 450 one-way (mid-season).
Spanish community: present in Asunción for decades, with active cultural and commercial associations. Top expat neighborhoods: Villa Morra, Las Mercedes, Carmelitas, Recoleta.
Private healthcare: Asismed, Migone, Bautista — USD 60-150/month.
International schools: ASA, Pan American, Colegio Internacional, St. Anne's, San Andrew's, Lycée Marcel Pagnol. Tuition USD 350-900/month. ASA has high initial enrollment (~USD 7,800).
Buying property: Spaniards can acquire real estate without nationality restriction. Prices significantly lower than Madrid or Barcelona.
Cost of living: see Paraguay 2026 cost of living.
Internet: fiber optic in Asunción and major cities. Plans from USD 25/month at 300 Mbps.
Dual citizenship: after legal residence (generally 3 years) and Paraguayan Civil Code requirements, a Spaniard can apply for Paraguayan naturalization while keeping Spanish citizenship under the 1959 Convention.

When professional advice pays off

Significant Spanish assets (real estate, equity, financial investments, mandatory Modelo 720).
Spanish companies that will continue operating — the DTT defines cross-border dividend taxation.
Active or contemplated Plan Beckham.
School-age children needing educational continuity.
Spanish public pensions or private pension plans.
Own business in Spain that will keep operating.
Complex financial investments requiring restructuring.
Paraguay Investor Pass application (investment structuring).
Binational succession planning (dual citizenship + testamentary planning).

ViaParaguay coordinates integrated advisory work with qualified professionals in Paraguay and Spain: Paraguayan notaries (escribanos), Spanish tax advisors specialized in non-residents and the new DTT, immigration lawyers, Paraguayan tax-residency and Investor Pass specialists.

To evaluate your specific case, contact us for a no-commitment initial consultation.

Next steps

Realistic timeline: 18 to 30 months done properly.
Organize Spanish patrimony first — review current Modelo 720, pending dividend distributions, pension plan redemptions.
Evaluate Plan Beckham vs Paraguay directly with a specialized tax advisor.
Visit Paraguay at least once before moving definitively.
Engage a qualified attorney or law firm in Paraguay.
Decide between Permanent Residency (via Law 6984/2022) or Investor Pass based on wealth and goals.
Initiate the Paraguayan migration process once apostilled documentation is ready.
Coordinate the timing: file Modelo 030 with AEAT within 3 months of the effective change.
Accumulate the 120 Paraguayan days for the DNIT tax residency certificate.

For deeper context:

This guide is informational and reflects current legislation at the time of writing. It does not constitute personalized legal, tax, or migration advice. For your specific case, consult qualified professionals in Paraguay and Spain — particularly a Spanish tax advisor specialized in non-residents and the Spain-Paraguay DTT, and a Paraguayan attorney licensed in immigration law.

Spaniards in Paraguay 2026: residency, Spain-Paraguay DTT and full guide