Living in Paraguay: fiscal freedom and quality of life
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.
Everything to get settled in Paraguay
Why choose Paraguay?
Six reasons that explain why more and more people are choosing Paraguay as their new permanent home.
Affordable cost of living
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.
Strong legal security
Paraguay has a Constitution that protects private property, free capital movement and no currency controls. The guaraní is stable and the USD circulates freely.
Pleasant subtropical climate
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.
Active expat community
Asunción has a growing Latin American and European community. Social media groups, networking events and active expat associations.
Cheap electricity
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.
Territorial tax system
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.
Comparative tax system
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.
Step-by-step residency process
Paraguay accepts residents from any country in the world. The process can be completed in 45-90 days with specialized local managers.
Initial documentation
Valid passport, apostilled birth certificate, apostilled criminal record and photos.
Processing in Paraguay
The agent submits your file to the General Directorate of Immigration. Personal RUC (tax ID) is obtained.
Interview and biometrics
Brief in-person interview, fingerprinting and official photo. In Asunción this is done at the Immigration headquarters.
Paraguayan ID card
Obtaining the national identity card. From here you can open bank accounts, sign contracts and vote.
Paraguay Investor Pass
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.
- Direct permanent residency — no temporary residency required
- Only 1 visit to Paraguay every 3 years to maintain residency
- Digital process: investor certificate in 5 business days
- Paraguayan dividends at 8% (aligned with IRP-RGC regime vs. 15% standard IDU for non-residents)
Most sought-after neighborhoods in Asunción
Each neighborhood has its own personality. Discover the most sought-after areas by expats and residents.
Villa Morra
PremiumThe most cosmopolitan neighborhood. Restaurants, malls, 5-star hotels and corporate buildings. Premium northern zone.
Carmelitas
ExpatVery popular with foreigners. Quiet, tree-lined area with specialty cafés and access to Mariscal López shopping center.
Recoleta
ResidentialResidential neighborhood with quiet streets. Bilingual schools, parks and modern buildings. Ideal for families.
Mariscal López
CommercialMain commercial corridor with clinics, banks, universities and the largest shopping center in Paraguay.
Ciudad Vieja
HistoricThe historic heart of Asunción with the bay, the López Palace and national museums. Currently being revitalized.
See all neighborhoodsMonthly cost of living estimate
Reference for a single person in Asunción, northern zone. Prices are in USD at the official exchange rate.
Profile: Basic-to-mid lifestyle
Comfortable life without luxuries
Profile: Premium lifestyle
Modern apartment, car, frequent outings
* Indicative estimates. Prices vary by area and lifestyle. USD/PYG exchange rate is indicative.
Living in Paraguay & fiscal residency guides
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Paraguay's movie theaters, city by city
The country's movie theaters, city by city: where they are, how many screens they have, which formats they show and how the discounts work.
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Theaters, museums and cultural centers in Paraguay
Paraguay's open theaters, museums, cultural centers and galleries: where they are, which days they open and which ones charge admission.
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Paraguay's shopping malls, city by city
The country's shopping malls, city by city: where each one is, when it opens and what you will find inside.
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The Licensed Banks in Paraguay
Which banks the Central Bank of Paraguay supervises, how it groups their capital, what digital channels they offer, and how large their branch networks are, based on official sources.
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Medicine in Paraguay: Its Graduates Top Brazil's Revalida Licensing Exam
The story is that 35,000 Brazilians study Medicine in Paraguay because it's the "easy way in." Brazil's own 2024 Revalida data says otherwise: Paraguay-trained graduates led approval rates among 39 countries.
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