obtaining residency in another country is a popular concept. People looking for a solid plan b are looking for ways to get a second home that they can use in future scenarios.
If you are looking to obtain a second residence in a South American country that can lead to citizenship, Paraguay may be an ideal option for you.
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In this article, we will guide you through the process of obtaining residency in Paraguay, how to make use of the tax benefits, and how you can become a naturalized citizen of the country in three years.
why obtain permanent residence and Paraguayan citizenship?
paraguay is a landlocked country in south america that shares borders with argentina, brazil, and bolivia. It is known as the “heart of South America” due to its central location on the continent.
here are some benefits of making an investment for residence in paraguay:
- With your residency, you can live, work and study in Paraguay.
- You do not need to live in the country to maintain your status. staying in paraguay just one day every three days is enough to maintain your residence.
- Paraguay is famous for its tax benefits. If you are ready to move your tax residence to a new country, you may want to consider investing in Paraguay.
- Investment amounts are relatively low.
- Paraguay is a stable South American country and a member of the southern common market (mercosur) with one of the highest gdp growth rates in the world.
how to obtain permanent residence in paraguay
obtaining a permanent residence in paraguay is a simple and direct process with several alternatives, such as making a bank deposit, making an investment or applying as a retiree.
routes to paraguay permanent residence
- make a bank deposit of gs30,817,850 in paraguay: this amount is equivalent to around $4,500 depending on the current exchange rate. after the immigration process is completed, you can withdraw this amount. proof of monthly income is not required.*
- obtaining residence in paraguay by investment program: the minimum investment is $70,000, however, the investment can be completed in a period of 10 years. buying real estate, offering services, or engaging in trade, farmland, and other activities may also qualify.**
- retiring in the countryside: You can take this path if your monthly income pension is at least gs8,434,000 (about $1,000). there are no age restrictions.
*this permanent residence option is only available if you can enter paraguay without a visa or you can obtain a visa upon arrival.**if you need a visa to enter paraguay, you can benefit from this permanent residence option.
documents required for permanent residence permit in paraguay
- passport
- clean police record
- birth certificate
- marriage or divorce certificate (if applicable)
- medical certificate that has been issued in paraguay)
- certification that has been issued in paraguay
- document issued by the national police, identification department of paraguay
- proof of domicile in Paraguay that must be maintained during the residence
all the documents you bring from abroad must be officially translated into Spanish, apostilled and notarized.
Deadline to obtain permanent residence in Paraguay
The process to acquire a permanent residence permit in Paraguay can take up to 90 days from the time of application.
Within six months of receiving the permanent residence permit, you will need to visit Paraguay and apply for an identification card.
validity of the paraguay permanent residence card
Your permanent residence card in Paraguay will be valid for five years.
how to get citizenship in paraguay
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once you obtain your permanent residence in paraguay, you do not have to live in the country to maintain your status as we have said previously. however, if you wish to apply for Paraguayan citizenship, there are certain requirements.
To be eligible for citizenship, you must have spent at least 183 days a year in Paraguay, pay taxes and social security, and learn Spanish (Castellano) and a bit of Paraguayan history. at the end of three years, you may be eligible to apply for citizenship.
However, please note that although a permanent resident of Paraguay can apply for citizenship at the end of three years, the naturalization procedure may take a few more years.
advantages of Paraguayan citizenship by investment
- A Paraguayan passport allows you to travel to more than 130 different countries without a visa or with a visa on arrival. These include the EU, Russia, and the UK.
- As a citizen of Paraguay, you can easily obtain a work visa in the United States.
- Once you become a citizen of Paraguay, you can settle in any Mercosur country (Brazil, Argentina or Uruguay).
dual nationality in paraguay
paraguay’s constitution informs that dual citizenship is only allowed on the basis of reciprocity, which means that unless paraguay and your country have a bilateral agreement, you will not be allowed to keep your original nationality. It will be helpful to talk to immigration attorneys before making a decision.
taxation in paraguay
in the mercosur, paraguay stands out for its tax benefits. Foreigners living in Paraguay only pay personal income tax on income earned in the country. Most citizens and residents do not have to pay income taxes because their annual income does not exceed the minimum tax-friendly threshold. Residents start paying income taxes when they earn at least $22,500 in Paraguay.
The income you generate in foreign countries as a permanent resident of Paraguay is not subject to tax if you do not live in Paraguay.
Although you will not be required to pay taxes on foreign-source income, you will be required to pay taxes on land-based income earned in Paraguay.
conclusion
obtaining residency and becoming a permanent resident in paraguay can be an excellent option if you are looking for a plan b in south america. With its central location on the continent, Paraguay offers diverse opportunities for entrepreneurs who want to expand their businesses and relationships.
frequently asked questions about paraguay permanent residence and citizenship in paraguay
how can i move to paraguay?
Moving to Paraguay is easy. if you meet the basic requirements to establish residency, you must wait three years before applying for citizenship.
How can I obtain permanent residence in Paraguay?
If you are from a country that does not require a visa to enter Paraguay, all you have to do is deposit the required amount in the national bank.
If you are from a country that requires a visa to enter Paraguay, you can make an investment in the country and obtain a residence permit in the country.
how do i become a citizen of paraguay?
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If you are a foreigner who has the right to enter Paraguay without a visa, you can benefit from the national bank deposit option.
if not, you can make use of the investment program and obtain permanent residence in paraguay by investing in the country. You can choose to buy land, property or open a business.
how long does it take to get citizenship in paraguay?
In general, it takes three years to obtain citizenship. but in general, the naturalization period could take two more years.
Which country is it easiest to get citizenship from?
There are countries that offer citizenship between three and six months, such as the Caribbean countries.
malta also offers citizenship between 12 and 36 months. however, the financial requirements are higher compared to Paraguay.
How strong is the Paraguayan passport?
The Paraguayan passport allows visa-free or visa-on-arrival travel to more than 130 countries, including the EU and the UK.
how long does it take to obtain permanent residence in paraguay?
If you meet all the requirements, you can expect to get your green card in about three months.
does paraguay offer dual citizenship?
yes, it does. Paraguay allows dual citizenship, which means you don’t have to give up your current citizenship.
can foreigners buy properties in paraguay?
yes, they can. Property acquisition is available for foreigners and is cheaper compared to other countries.
Is Paraguay a good place to live?
Due to its temperature, friendly people and relaxed pace of life, Paraguay is frequently mentioned as the best country in Latin America to live in.
If you prefer a quiet lifestyle and an always bright atmosphere, you will feel at home in Paraguay and it will change your life.
Do I have to become a tax resident in Paraguay if I get residency?
No, you do not have to move your tax residency to Paraguay once you obtain your Paraguayan residency, but it can be profitable as Paraguay is known for its tax benefits for both locals and foreign investors.
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