Retire in Paraguay (2026): residency, tax, health and what to check first

The residency route for retirees

Law 6984/2022 has no pensioner or rentista category: it creates occasional, temporary and permanent residency only. Temporary residency (up to 2 years, renewable) needs the standard documents and a sworn statement of the activity you will carry out and your address; the DNM list contains no pension, income or deposit item. At the permanent stage, DNM Resolution 407/2026 (filings from 6 July 2026) lists "Jubilados o Pensionados" among 12 solvency categories: you present a retirement or pension certificate stating the amount received and the financial channel, legalised or apostilled and translated. No minimum monthly amount is stated. If you own property instead, a different category asks for a title registered in the last two years and the authority may ask for proof that it produces income. The step-by-step process, fees (₲2,926,925 for temporary and for permanent) and timeline are in our Paraguay residency guide.

Keeping your residency

There is no statutory minimum number of days per year. Permanent residency can be cancelled after more than 3 years of unjustified absence (the DNM can extend the period). If you later want to naturalise, the Supreme Court's own rules look for a real domicile and limit absences: see Paraguay citizenship.

Tax on your pension

Paraguay's income tax is territorial: it charges Paraguay-source income from activities carried out in the country, assets located there or rights used economically there. The tax authority's FAQ says that if the activity is abroad, the income is foreign-source, and it treats an individual as a fiscal resident if they hold permanent residency. The law exempts non-contributory state pensions, but we found no primary text that classifies a pension paid by a foreign scheme. Do not assume it is untaxed: ask a Paraguayan accountant (contador), and check how your home country taxes the pension, because it may keep the right to.

Healthcare for retirees

The public system charges no fees at Ministry of Health facilities and the migration law says health care cannot be denied to a foreigner for irregular status, but availability and quality vary. The voluntary IPS scheme for independents (13% on at least the minimum wage) is pension-only: IPS's own FAQ (2024) says it does not include medical care. IPS health cover is for employees and their families. A foreign retiree should plan private insurance or a prepaid plan; read our healthcare guide.

Buying property and moving your things

• Foreigners can buy property. The 50 km border strip (Law 2532/2005) bars only nationals of bordering countries, and companies mostly owned by them, from rural land there unless the Executive authorises it.
• Title quality is a known risk: the US State Department notes serious survey and registry gaps. Use a notary and check the registry before paying.
• Price points reported by a listings portal (Jan–Apr 2026): own-use buyers target US$100,000–150,000; investors US$55,000–95,000 for one- or two-bedroom flats.
• Customs: personal-use items are duty-free; other goods get a US$1,000 allowance by air or river and US$300 by land. A US Commerce guide says used cars over ten years old are prohibited, but press reports a court ruling that let older ones in, so check before shipping a car.
• Driving licence: the national road-safety agency page we read lists only a Chile–Paraguay exchange. We found no page describing a general conversion of other foreign licences, so ask the agency.

Who it suits

Retirees who are comfortable with Spanish-language bureaucracy, can document a stable pension or other income for the permanent stage, accept that healthcare is something to arrange privately, and want a low cost of living (see cost of living in Asunción). Expectat is not a law firm or tax adviser: the rules above are in flux, so verify before you apply.