Getting residency in another country is a popular concept. People who are looking for a solid Plan B are looking for ways to get their hands on a second residency that they can use in future scenarios.
If you’re looking to get a second residency in a South American country that can lead to citizenship, Paraguay can be an ideal option for you.
In this article, we’ll guide you through the process of getting residency in Paraguay, how to make use of tax benefits, and how you can be a naturalized citizen of the country in three years.
Why Get Paraguay Permanent Residency and Citizenship
Paraguay is a landlocked country in South America that shares borders with Argentina, Brazil, and Bolivia. It’s known as the “Heart of South America” because of its central location on the continent.
Here are some benefits of making an investment for Paraguay residency:
- With your residency, you can live, work, and study in Paraguay.
- You don’t need to live in the country to maintain your status. Staying in Paraguay only for one day every three days suffices to keep your residency.
- Paraguay is famous for its tax benefits. If you’re ready to move your tax residence to a new country, you can consider investing in Paraguay.
- The investment amounts are relatively low.
- Paraguay is a stable South American country and a Mercado Común del Sur (MERCOSUR) member with one of the greatest GDP growth rates in the world.
How to Get Paraguay Permanent Residency
Getting a Paraguay permanent residency is a simple and straightforward process with several alternatives, such as making a bank deposit, making an investment, or applying as a retiree.
Routes to Paraguay Permanent Residency
- Making a bank deposit of Gs30,817,850 in Paraguay: This amount equals around $4,500 depending on the current exchange rate. After the immigration process is completed, you can withdraw this amount. No monthly income proof is required.*
- Getting Paraguay residency by investment program: The minimum investment is $70,000, however, the investment can be completed in a 10-year period. Purchasing real estate, offering services, or engaging in commerce, agricultural land, and other activities can also qualify.**
- Retiring in the country: You can take this path if your monthly retirement income is at least Gs8,434,000 (around $1,000). There are no age restrictions.
*This option to permanent residency is only available if you can enter Paraguay without a visa or can obtain a visa upon arrival.
**If you need a visa to enter Paraguay, you can benefit from this permanent residency option.
Required Documents for Paraguay Permanent Residence Permit
- Clean police record
- Birth certificate
- Certificate of marriage or divorce (if applicable)
- Medical certificate that has been issued in Paraguay)
- Affidavit that has been issued in Paraguay
- Document issued by the National Police, Identifications Department of Paraguay
- Proof of residence in Paraguay which you need to hold throughout residency
All of the documents that you bring from abroad need to be officially translated to Spanish, apostilled and notarized.
Time Frame To Get Permanent Residency in Paraguay
The procedure of acquiring a Paraguay Permanent Residence Permit can take up to 90 days from the time of application.
Within six months of receiving the permanent residence permit, you’ll need to visit Paraguay and must apply for an ID card.
Validity of Paraguay Permanent Residence Card
Your Paraguay permanent residence card will be valid for five years.
How To Get Citizenship in Paraguay
Once you get your permanent residency in Paraguay, you don’t have to live in the country to maintain your status as we’ve previously stated. However, if you want to apply for Paraguay citizenship, there are certain requirements.
To be eligible for citizenship, you’re required to have spent at least 183 days every year in Paraguay, pay taxes and social security, and learn Spanish (Castellano) and a bit of Paraguay history. At the end of three years, you can be eligible for citizenship application.
However, note that although a permanent resident of Paraguay can file for citizenship at the end of three years, the naturalization procedure might take a few more years.
Advantages of Paraguay Citizenship by Investment
- A Paraguayan passport allows you to travel to over 130 different countries visa-free or visa-on-arrival. These include the EU, Russia, and the UK.
- As a citizen of Paraguay, you can easily get an employment visa in the US.
- Once you become a citizen of Paraguay, you can settle in any MERCOSUR country (Brazil, Argentina, or Uruguay).
Dual Citizenship in Paraguay
Paraguay’s constitution advises that dual citizenship is allowed only on a reciprocity basis, which means that unless Paraguay and your country have a bilateral agreement, you will not be allowed to keep your original nationality. Speaking to immigration lawyers before you make a decision will be helpful.
Taxation in Paraguay
In the MERCOSUR, Paraguay stands out with its tax benefits. The foreigners who live in Paraguay only pay personal income tax on income earned in the country. The majority of the citizens and residents do not have to pay income tax because their annual income does not exceed the tax-friendly minimal threshold. Residents begin paying income tax when they earn at least $22,500 in Paraguay.
The income you generate in foreign countries as a Paraguay permanent resident is not taxable if you do not live in Paraguay.
Even though you will not be required to pay tax on foreign sourced income, you will be required to pay tax on onshore income earned in Paraguay.
Obtaining residency and becoming a permanent resident in Paraguay can be a great option if you’re looking for a Plan B in South America. With its central location on the continent, Paraguay offers various opportunities for entrepreneurs who want to expand their business and relations.
Frequently Asked Questions on Paraguay Permanent Residency and Citizenship in Paraguay
How can I move to Paraguay?
Moving to Paraguay is straightforward. If you meet the basic requirements for establishing residency, you must wait three years before applying for citizenship.
How can I get permanent residency in Paraguay?
If you’re from a country that doesn’t require a visa to enter Paraguay, depositing the required amount into the national bank would suffice.
If you’re from a country that requires a visa to enter Paraguay, you can make an investment in the country and get a residence permit in the country.
How do I become a citizen of Paraguay?
If you’re 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 get Paraguay permanent residency by investing in the country. You can opt to purchase land, property, or open up a business.
How long does it take to get citizenship in Paraguay?
In general, it takes three years to get citizenship. But overall, the naturalization period might take two more years.
What country is the easiest to get citizenship?
There are countries that offer citizenship for between three to six months, such as Caribbean countries.
Malta also offers citizenship between 12 and 36 months. However, the financial requirements are higher when compared to Paraguay.
How strong is the Paraguay passport?
Paraguay passport allows visa-free or visa-on-arrival travel to over 130 countries, including the EU and the UK.
How long does it take to get permanent residency in Paraguay?
If you meet the all requirements, you can expect to get your residency in around three months.
Does Paraguay offer dual citizenship?
Yes, it does. Paraguay allows dual citizenship which means that you don’t have to give up on your current citizenship.
Can foreigners buy property in Paraguay?
Yes, they can. Property acquisition is available to foreigners and it’s cheaper when compared to other countries.
Is Paraguay a good place to live?
Because of its temperature, friendly people, and relaxed pace of life, Paraguay is frequently referred to as the best country in Latin America to live in.
If you prefer a tranquil lifestyle and a constantly bright atmosphere, you’ll feel right 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 don’t have to move your tax residency to Paraguay once you get your Paraguayan residence but it can be profitable as Paraguay is known for its tax benefits both for locals and foreign investors.