The Heart of Our Business

Tax residency in Paraguay: pay 0% tax, 100% legally.

0% tax on your foreign-source income, thanks to a territorial framework that has existed for more than 30 years. English-speaking support that handles everything, from the first document to your card.

The Principle

A territorial system.

Paraguay applies what's called territorial taxation: only income generated on its soil is taxed. Your foreign-source income (salaries, dividends, online income, capital gains realized outside the country) simply doesn't fall within the Paraguayan taxable base.

This isn't a loophole or a scheme: it's how the Paraguayan tax code has normally worked for more than thirty years. Our role is to properly register you within it, with a solid, documented file.

The Key Figures

  • 0% on foreign-source income
  • 10% on Paraguayan-source income (among the lowest in the world)
  • 10% VAT, no wealth tax
  • Minimal physical presence required to keep your status
The Mechanism at a Glance

How the 0% works.

Three building blocks, one simple logic: what's earned outside Paraguay isn't taxed in Paraguay.

Your Foreign Income

Salaries, dividends, online business, capital gains realized outside the country.

PY Tax Residency

Cédula, RUC, and tax residency certificate established in your name.

0%

tax due

This income doesn't fall within the Paraguayan taxable base. Entirely legally.

Income generated in Paraguay, on the other hand, remains taxed at 10% (one of the lowest rates in the world). It's the only part that falls within the local taxable base.

The concrete setup

Where does the money actually land?

Becoming a Paraguayan tax resident is not enough on its own. The 0% applies to your foreign-source income, provided it no longer passes through an entity still taxable in its home country. In other words: your tax status has to be planned together with the structure that receives the money.

The principle is simple. You invoice your activity (clients, services, online income) through a legal entity set up in a jurisdiction that also doesn't tax this income. This entity then pays you what you decide, and it's you, as a Paraguayan tax resident, who receive it, with no local tax on what comes from abroad.

The most common choice: the LLC

About 9 out of 10 people we support choose an LLC. It's probably one of the simplest, least costly entities to set up: light management, pass-through taxation, and when structured properly, it generates no corporate-level tax. We guide you toward the structure suited to your situation and set it up with you.

Who It's For

Built for these profiles.

Entrepreneurs & Freelancers

You invoice clients abroad and want a light, legal tax framework.

Investors

Dividends, capital gains, foreign-source income: you're looking to optimize cleanly.

Digital nomads

You work from anywhere and want a stable base, with minimal presence required.

Crypto Holders

A clear framework for your digital assets, in a country that respects financial privacy.

Retirees

Your foreign-source pensions, a low cost of living, a pleasant climate.

Those Wanting a Plan B

A solid second residency, outside your home country, that can be activated for the long term.

What We Handle

From A to Z, in English.

You don't chase an administration in Spanish. We handle everything, you sign off.

Building the File

Preparation, official translation, and verification of every document, before you leave.

Residency & Cédula

Filing the application and obtaining your Paraguayan resident card (Cédula).

RUC & Tax Residency

Obtaining your tax number (RUC) and the tax residency certificate.

On-the-ground support

We're at every administrative appointment in Asunción, by your side.

Additional Services

Bank account, monthly accounting, driver's license: we stay your contact.

Fixed price, no surprises

A written scope, a clear rate. What's included is included.

What You Need to Do

Your journey, five steps.

Concretely, here's what happens, on your side and on ours.

1

Free Conversation

We assess your eligibility and tell you honestly if Paraguay fits your situation.

2

Preparing the File Remotely

We list, translate, and verify your documents. You don't book any flight before our green light.

3

Stay in Asunción

A few days on the ground. Filing the residency application, biometrics, official appointments, fully supported.

4

Obtaining the Documents

Cédula, RUC, and tax residency certificate. Average timeline: a few months, with a well-prepared file.

5

Long-Term Follow-up

Accounting, renewals, required presence: we stay your English-speaking point of contact.

See our method in detail
The question we get asked most

"Is it really legal?"

Yes. This is legal tax optimization through legal structures, not evasion. The territoriality principle is written into Paraguayan law and was confirmed by the 2019 tax reform (law 6380). Paraguay officially recognizes your residency, and a well-built, documented file is your best protection, including toward your home administration. That's precisely what we build with you.

Good to know: the tax residency certificate isn't automatic. The DNIT expects real filings (not "zero" ones) over several months. So we frame your local activity in advance, so the certificate is actually deliverable, rather than promising it to you blindly.

FAQ

Frequently Asked Questions

Count on about 3 months for the resident card, then 1 month for the Cédula, and about 1 more month to open the RUC. So around 5 months total. These timelines vary depending on your file and the pace of the administrations.

Yes, a single stay of about 5 days is planned, for the steps that require your presence. Everything else is handled remotely.

Once the Cédula is available and your eligibility confirmed, our team prepares and follows up on opening the RUC remotely, with no new trip needed.

Your apostilled birth certificate and criminal record, a valid passport, and a passport photo on a white background. If you're married or divorced, add the apostilled marriage or divorce certificate. Note: the apostille must be affixed to the original, and the name must be strictly identical across all documents. This is one of the most common causes of refusal, and a point we systematically check before you leave.

Four elements: your cédula, an active RUC, a tax compliance certificate attesting to several months of filings with real amounts (not zero), and the constancia de movimiento migratorio issued by Migraciones. A file filed with zero filings is very often refused, which is why we frame your local activity in advance.

The tax residency certificate can be issued regardless of the physical time spent on the ground, as long as you have real local economic activity and up-to-date filings. The criterion isn't the number of days, but the real substance of your residency: that's what makes it solid against your home administration.

Ready to set up your tax residency?

A first conversation, free and with no obligation. We assess your situation and tell you what's possible, concretely.

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