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For a few years now, Paraguay has been an absolute trend when it comes to emigration. But what makes the Latin American country so attractive, and why do more and more people want to move there?
Everything about emigrating to Paraguay in this comprehensive guide. Starting with reasons and requirements to the process and costs.
Why emigrate to Paraguay?
The reasons for emigrating to Paraguay are diverse and also individual. Below are the main reasons why emigration to Paraguay is so popular, as well as a few potential negative aspects that one should know.
Advantages
Let's start with the advantages, which clearly outweigh the disadvantages. Of course, advantages also always depend on the individual situation and carry more or less weight depending on one's own circumstances.
Taxes
The Tax system in Paraguay is particularly attractive for expats. It is often also referred to as tax haven titled, because Paraguay has a territorial tax system. This means that foreign income is not taxed. This includes all types of income and dividends.
Furthermore, no taxes are levied on crypto and capital gains, provided that no active trading company is operated in Paraguay and the activities are strictly limited to passive investments.
Therefore, Paraguay is particularly attractive to investors of all kinds.
Even for wealthy individuals, Paraguay does not levy taxes on wealth, inheritance, or gifts.
Global Setup · Paraguay
Estimate your tax burden as a tax resident in Paraguay - according to the territoriality principle and current Paraguayan tax laws (Law 6380/19).
IRP-RSP: tax-free up to 80 million ₲ in gross annual income; above that, progressive rates of 8% (up to 50 million), 9% (50–150 million), 10% (over 150 million). Tax-exempt allowances and deductions are not taken into account here.
IRE: 10% on Paraguayan corporate profits. In the event of a distribution, IDU also applies (see below). Retained/capitalized earnings do not trigger IDU.
Local dividends: IDU 8% (Resident). Foreign dividends are tax-exempt for individuals under the territorial principle (0%).
Crypto gains
0% / 8%Crypto gains on foreign exchanges are considered foreign income (0%). Note: Resolution 47/2026 requires reporting for amounts of ~5,000 USD/year or more (no tax).
Capital gains
0% / 8%IRP-RGC: Paraguayan capital gains 8% flat. Gains from foreign assets are territorially tax-exempt (0%).
Effective tax rate
Note: Non-binding estimate based on current Paraguayan tax laws (Law 6380/19, as of 2026). Territorial principle: Foreign income (foreign services, dividends, cryptocurrency, capital gains) is tax-exempt for individuals with 0%. IRP-RSP progressive 8/9/10% (tax-free up to 80 million ₲ gross); investment income 8%; IRE 10% (Simple ~3%); IDU 8% local; IPS ~9%. Tax-exempt amounts/deductions, IVA (10%), and special cases (e.g., nexus risk when providing services from Paraguay) are not included. Currency conversion using reference rates of ~6,586 ₲/USD and ~7,100 ₲/EUR. This calculation replaces no individual tax advice. For a binding assessment, please book a consultation.
Geopolitical situation
Paraguay is naturally particularly attractive due to its geopolitical position, as the country is far away from crisis hotspots such as the Middle East (Israel and Palestine), as well as Eastern Europe (Russia & Ukraine) and other crisis regions.
Even in the event of a world war, South America has always been a safe place because there are few politically or militarily relevant targets here. Paraguay as a country itself remains very neutral towards almost all political conflicts in the world.
Furthermore, economically speaking, Paraguay is very independent. Especially when it comes to agriculture and the food supply. Paraguay has great access to its own fresh water, and a multitude of foods are grown and produced right on its fertile soil. Should global supply chains collapse, Paraguay is definitely one of the safe places to be.
Climate
Another factor in favor of Paraguay is its climate, as the country offers a subtropical to tropical climate with plenty of sunshine and warmth for all sun lovers. In addition, there are distinct seasons, which provides variety.
Nature
Paraguay is a country with a comparatively low population density. Only 500,000 people live in the capital and largest city, Asunción, and the rest of the country is also very spacious with a low population density. Anyone who prefers peace and nature will find Paraguay to be a beautiful country.
Paraguay offers a diverse nature, ranging from waterfalls and mountains to lakes and forests.
Disadvantages
No country is perfect, and Paraguay is no exception. There are certain disadvantages that one should be aware of. Here is an overview of the biggest potential disadvantages of Paraguay.
Location
Even though the geopolitical situation is a major advantage, the location can generally be a disadvantage. This is because you are far away from all Western countries and have to plan for at least a full day of travel if you want to fly back to Europe or North America. This is due on the one hand to the distance, but also to the fact that there are usually no direct flights.
Roads & Traffic
The roads of Paraguay are definitely not among the best in the world and are in need of repair in many places. For passionate drivers, this is definitely not the place to be. This is also reflected in the condition of the cars, which would definitely not pass the TÜV inspection.
Delivery service
Many online shops do not ship to Paraguay directly, including Amazon. This can only be circumvented by setting up an intermediary service, essentially a proxy address with a courier. Of course, this causes higher costs, extra effort, and increases the delivery time.
Prerequisites
Paraguay is a very open country and immigration requirements are very relaxed. You only need proof of a regular income or pension, or proof of assets of around USD 5,000 in a bank account. Add to that a police clearance certificate from the previous country of residence and you meet the most important criteria.
Additionally, the passport must be valid for at least 6 months.
You should enter the country continuously every 3 years to maintain your residency visa. After 10 years, you can apply for citizenship if needed.
Procedure
Emigrating to Paraguay is comparatively easy. Here is an overview of the most important points when it comes to emigrating to Paraguay.
1. Sign out
The first step is the clean Deregistration from Germany or another country of origin from which one comes. There are a few things to consider here, such as potential Exit taxation, de-registration of the apartment / house, cancellation of further contracts, as well as withdrawal from the insurance system. Finally, one also has to de-register at the local registration office. Meanwhile, this can also be done online.
2. Documents
After that, as described previously, the prerequisites must be met. On the one hand, this is the proof of assets or income. This can be, on the other hand, an account with an amount of 10,000 USD or proof of an income of at least 1,300 USD. In addition, the following documents must be prepared (official documents must be attested and translated into Spanish).
- Birth certificate
- criminal record certificate
- Valid passport
- Bank statement
- Passport photos
- Optional: Marriage certificate
4. Entry & Application
After properly deregistering and preparing the documents, the next step is to enter the country. This is because the actual application and approval take place on-site. The following steps are carried out for this:
- Submission of previous documents
- Interpol and local police certificate
- Medical check-up
- Fingerprinting
- Submission of all documents (at the Dirección General de Migraciones)
5. Issuance of the card (Cedula)
Subsequently, you receive the card, which serves as a residence permit. To maintain it, you should either actually move to Paraguay or at least enter the country every 3 years. Initially, you receive the temporary residency for 2 years, and afterward, you receive the permanent residence permit.
6. Account opening
There are local banks where you can open accounts using a residence and residency permit, but this is generally not recommended. The banks in Paraguay are not among the most stable and do not offer the best conditions. As a rule, it is recommended to do banking in other jurisdictions such as the USA, Singapore, Switzerland, UAE, or Georgia.
Costs
The total costs for emigrating to Paraguay vary and depend on how many items you want to import. However, if you are alone and generally starting from scratch, the only costs are the flight and local bureaucracy. The latter amounts to a one-time fee of around €5,000 per person using a service agency (highly recommended).
Experiences
In our experience, Paraguay can definitely be a great country to move to if you do proper research beforehand and also have access to the expat community to make arrival and settling in easier. In addition, you should be aware that Paraguay is a relaxed country, and anyone who wants a fast-paced business lifestyle would be better off move to Dubai.
The most important points to emigrate successfully and free yourself from the system.
Optimize taxes, gain freedom and increase quality of life.
Summary
Paraguay is an increasingly popular country when it comes to emigration. It offers numerous advantages such as low taxes (in some cases complete tax exemption), geopolitical security in the event of a crisis, and a relaxed lifestyle. In addition, the requirements for immigration are very low. All that is required is proof of assets of 5,000 USD and a clean criminal record. The costs for the complete processing through a service agency are usually around 10,000 USD.
