Paraguay residency & tax 2026: how to apply, cost & timeline

How residency in Paraguay works

Paraguay runs one of the world's most accessible residency programmes, overhauled by the 2022 Migration Law (Law 6984) and administered by the Dirección Nacional de Migraciones (DNM). The path is sequential: two years of temporary residency, then permanent residency, then — after three years as a permanent resident — the option to naturalise as a citizen.

Routes to residency

Most applicants take the standard route — temporary residency first, converting to permanent later. Two shortcuts exist: the SUACE investor programme grants immediate 10-year permanent residency (and a cédula) for a qualifying business investment from around US$70,000; and MERCOSUR nationals and the family members of Paraguayans have their own simplified categories.

How to apply, step by step

1. Gather and legalise your documents at home — passport, full birth certificate and a police-clearance certificate, each apostilled (or consular-legalised) and translated into Spanish.
2. Travel to Paraguay. Most of the process is completed in-country, in person or through a local lawyer acting under power of attorney.
3. File your temporary-residency application with the Dirección Nacional de Migraciones (DNM), including a sworn statement of your economic activity, and pay the official fee.
4. Wait for DNM approval — roughly 60–90 days — then collect your carnet de radicación temporaria, valid for two years.
5. Apply for your Paraguayan cédula (national ID), which you'll need for banking, contracts and a tax ID (RUC).
6. From the 21st month, and before the 24-month expiry, convert your temporary residency into permanent residency.
7. After three years as a permanent resident, you may apply for citizenship and a Paraguayan passport, subject to integration requirements.

What you'll need

• A valid passport, plus passport-style photos.
• Your birth certificate — apostilled and translated into Spanish.
• A police-clearance / criminal-record certificate from your country of residence — apostilled and translated.
• A sworn declaration of your profession or economic means (no fixed income threshold applies).
• Proof of address and the DNM application forms, with the fee paid.
• For the SUACE investor route: a business plan and evidence of the qualifying investment.

Document lists and fees change — always confirm the current requirements with the DNM (linked below) before you travel.

Cost & timeline

How your income is taxed

Paraguay is territorial: only Paraguay-sourced income is taxed, at a flat 10% personal income tax (IRP), while foreign-source income is generally outside the net. To actually benefit, though, you must become genuinely tax resident here and stop being tax resident where you are now — residency paperwork alone doesn't move your tax home.

That means meeting the local ties test, obtaining a Paraguayan tax-residency certificate, and formally cutting ties to your former country. Watch for exit taxes and the tie-breaker rules in any double-tax treaty. Our walk-through covers the 183-day rule, centre of vital interests and the paperwork that makes the switch stick: how to establish tax residency abroad.

The upside — why people choose Paraguay

• One of the cheapest routes to a second residency anywhere — no minimum income, bank deposit or property purchase required.
• Territorial tax: foreign-source income is generally left untaxed, and local income is a flat 10%.
• A clear, law-based path from residency to permanent residency, and to citizenship and a passport after three years.
• Light physical-presence demands to keep the residency itself, which makes it a practical backup flag.
• A stable, low-cost, increasingly dollar-friendly economy in the heart of South America, with MERCOSUR mobility.
• The cédula unlocks local banking, contracts and setting up a business.

Common challenges to plan for

• It's bureaucratic and conducted in Spanish — documents must be apostilled and translated, and most steps happen in person or through a local lawyer holding power of attorney.
• Timelines slip: DNM approval alone runs 60–90 days, and the full process commonly takes four to six months.
• Residency is not the same as tax residency — to actually capture the territorial-tax benefit you must genuinely move your tax home and obtain a tax-residency certificate, not merely hold the card.
• The rules changed with the 2022 reform and continue to evolve, so figures and document lists should be reconfirmed before you start.
• Opening a bank account can still demand real presence and patience, even with a cédula in hand.

Who it suits

Best for budget-conscious nomads, entrepreneurs and investors who want a cheap, durable second residency and territorial taxation without a large capital commitment — and who are willing to spend real time on the ground to make the tax residency genuine.

How Expectat helps

Paraguay is genuinely doable on your own — and if that's your plan, the steps above are the plan. But if you'd rather not decode DNM forms in Spanish, we can map your route, connect you with vetted local specialists, and make sure the residency actually delivers the tax outcome you're after — not just a card in a drawer. Book a strategy call and we'll plan it with you.

Where it fits in a borderless plan

Residency is one flag of several. Most people pair a base like Paraguay with a deliberate capital structure and a self-custody plan for their Bitcoin, so their life, companies and savings each sit in the right jurisdiction. For the wider map of low- and zero-tax bases, see countries with no income tax in 2026.