Low taxes, accessible residency for citizens of any country, cost of living among the most competitive in the region, and a stable dollarized economy. Paraguay is the destination chosen by thousands of people from all over the world every year.
Six reasons that explain why more and more people are choosing Paraguay as their new permanent home.
Renting a modern apartment in Asunción costs between USD 400-700/month. Utilities, services and dining are significantly lower than in Argentina, Brazil or Chile.
Paraguay has a Constitution that protects private property, free capital movement and no currency controls. The guaraní is stable and the USD circulates freely.
Warm, humid summers (Dec-Feb) and mild winters (Jun-Aug). The average annual temperature is 23°C, ideal for those looking to escape extreme climates.
Asunción has a growing Latin American and European community. Social media groups, networking events and active expat associations.
Electricity is among the cheapest in the world thanks to the Itaipú dam. An average monthly bill for a 2-room apartment costs USD 15-25.
Paraguay applies the territorial principle: only Paraguayan-source income is taxed. Passive foreign income (dividends from foreign-incorporated companies, capital gains, rental income from real estate abroad) is not subject to IRP. Services physically performed from Paraguay require case-by-case analysis.
Paraguay offers one of the lowest tax burdens in South America for individuals and businesses.
| Tax | Paraguay | Argentina | Brasil | Uruguay |
|---|---|---|---|---|
| Personal income tax | 10% | hasta 35% | hasta 27.5% | hasta 36% |
| Corporate tax | 10% | 35% | 34% | 25% |
| VAT | 10% (5% reducido) | 21% | 17-25% | 22% |
| Inheritance tax | 0% | 0% | hasta 8% | 3% |
| Foreign income | 0% | Yes (various) | Yes | Yes (IRPF) |
* Indicative data 2024-2025. Consult a tax advisor for your specific situation.
Paraguay accepts residents from any country in the world. The process can be completed in 45-90 days with specialized local managers.
Valid passport, apostilled birth certificate, apostilled criminal record and photos.
The agent submits your file to the General Directorate of Immigration. Personal RUC (tax ID) is obtained.
Brief in-person interview, fingerprinting and official photo. In Asunción this is done at the Immigration headquarters.
Obtaining the national identity card. From here you can open bank accounts, sign contracts and vote.
Paraguay launched the Investor Pass in April 2026: direct permanent residency for foreign investors without going through temporary residency. Mostly digital process with investor certificate in 5 business days.
Each neighborhood has its own personality. Discover the most sought-after areas by expats and residents.
The most cosmopolitan neighborhood. Restaurants, malls, 5-star hotels and corporate buildings. Premium northern zone.
Very popular with foreigners. Quiet, tree-lined area with specialty cafés and access to Mariscal López shopping center.
Residential neighborhood with quiet streets. Bilingual schools, parks and modern buildings. Ideal for families.
Main commercial corridor with clinics, banks, universities and the largest shopping center in Paraguay.
The historic heart of Asunción with the bay, the López Palace and national museums. Currently being revitalized.
See all neighborhoodsReference for a single person in Asunción, northern zone. Prices are in USD at the official exchange rate.
Comfortable life without luxuries
Modern apartment, car, frequent outings
* Indicative estimates. Prices vary by area and lifestyle. USD/PYG exchange rate is indicative.
Who must file IRP in 2026, progressive rates of 8-9-10%, the non-taxable threshold and the official DNIT filing timetable. Based on Law 6380/2019.
The difference between immigration and tax residency, requirements following Law 6984/2022, the 120-day physical-presence rule, the DNIT certificate and how to preserve territoriality.
Frequently asked questions about the Paraguayan tax system following Law 6380/2019: 10% and 5% IVA, general and simplified IRE, INR on non-residents, withholdings and worked examples.
Differences between an entry visa, temporary residency, permanent residency and citizenship. Real costs, timeframes, apostilled documents and the full process at the Migration office.
How much it costs to live in Asunción, Encarnación, Ciudad del Este and Villarrica in 2026. Rents, groceries, transport, utilities and comparisons with Argentina, Brazil and Chile.
Since April 2026, Paraguay offers direct permanent residency for foreign investors from USD 150,000. Learn the requirements, benefits and how to apply.
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