Tired of the bureaucratic tangles of obtaining residency in many countries? Paraguay offers a seamless solution for those looking to establish temporary residence. With just a few documents and within a few days, you could secure your temporary residency and enjoy the benefits of a stable, tax-friendly nation. Dive deeper to discover more about this appealing offer.
Residency Requirements in Paraguay
Establishing residency in Paraguay requires careful preparation and local expertise. Two 3-day visits or one 2-week stay is usually necessary, with at least 1 week recommended on the ground since remote registration isn’t possible. Proper documentation like a police clearance is essential.
The immigration process has evolved over time. Previously, permanent residency required a 5,000 USD bank deposit. Currently, a temporary residency permit is provided for two years at a cost of 2,499 USD. Once the two years are over, converting to a permanent residency and renewing the ID costs 1,999 USD. Permanent residency only needs renewal every 10 years.
No obligation to relocate
A common misconception is that obtaining a temporary residency permit obligates relocation to Paraguay. This isn’t the case. Only when converting the temporary permit to permanent residency after 1 year and 9 months is a return required.
The Advantages of Paraguay’s Tax System
Paraguay’s tax system, based on territorial taxation, provides promising opportunities. Only income generated within the country is taxable, meaning foreign income is tax-free. This could be especially interesting for location-independent entrepreneurs and investors who can benefit from Paraguay’s favorable tax treatment.
Paraguay has joined the CRS agreement but hasn’t participated in data exchange yet. The country’s straightforward tax structure, with a consistent 10% tax rate on domestic income, offers lucrative opportunities for investors and entrepreneurs alike.
Paraguay’s RUC tax ID number enables local financial activities and meets tax obligations. The residency certificate confirms legal residency to access banking, investment opportunities, and potential tax benefits. Both are critical for conducting legitimate business and transactions.