Paraguay Residency
Guide to Paraguay residency for digital nomads. The lowest cost territorial taxation country with easy residency requirements.
Paraguay offers one of the easiest and cheapest residency programs in the world, combined with territorial taxation. It's an increasingly popular choice for digital nomads seeking a low-cost home base.
Overview
| Feature | Details |
|---|---|
| Type | Permanent residency |
| Timeline | 2-4 weeks |
| Investment | ~$5,000 bank deposit |
| Tax system | Territorial (foreign income not taxed) |
| Path to citizenship | 3 years |
| Physical presence | Minimal (visit once every 3 years) |
Why Paraguay?
Territorial Taxation
Paraguay only taxes income sourced within Paraguay. Your US LLC income from foreign clients? Not taxed.
Easiest Residency in the World
Paraguay has some of the most relaxed residency requirements:
- No income requirements
- No investment in real estate
- Minimal documentation
- Fast processing (weeks, not months)
Lowest Cost
Both the residency process and cost of living are among the lowest for any territorial taxation country.
Minimal Physical Presence
Once you have residency, you only need to visit Paraguay once every 3 years to maintain it. You can live wherever you want.
Fast Path to Citizenship
After just 3 years of residency, you can apply for Paraguayan citizenship — one of the fastest in the world.
Requirements
Paraguay residency is remarkably simple:
- Valid passport
- Police clearance from your home country (apostilled)
- Birth certificate (apostilled)
- Bank deposit — ~$5,000 in a Paraguayan bank (yours to keep)
- Health certificate (obtained in Paraguay)
- Application fee — ~$300
That's it. No income requirements, no investment in property, no language test.
The Process
- Arrive in Paraguay — You must apply in person
- Open bank account — Deposit ~$5,000
- Get health certificate — Simple medical exam
- Submit application — Through immigration or lawyer
- Receive residency — Usually 2-4 weeks
Most people use an immigration lawyer, though it's not strictly required.
Costs
| Item | Approximate Cost |
|---|---|
| Immigration lawyer | $500-1,500 |
| Government fees | $300-500 |
| Bank deposit | $5,000 (yours to keep) |
| Medical exam | $50-100 |
| Total | $1,000-2,500 + bank deposit |
This makes Paraguay one of the cheapest residency programs in the world.
Living in Paraguay
Cost of Living
- Asuncion: $800-1,500/month (comfortable lifestyle)
- Smaller cities: $500-800/month
- Rent: $300-700/month for a nice apartment
Paraguay has one of the lowest costs of living in South America.
Climate
Subtropical — hot summers (December-February), mild winters. No beaches (landlocked country).
Infrastructure
Asuncion has modern amenities, shopping malls, international restaurants. Internet quality has improved significantly.
Language
Spanish and Guarani are official languages. English is limited outside tourist areas.
Maintaining Residency
To keep your Paraguayan residency valid:
- Visit Paraguay at least once every 3 years
- Keep your ID card (cedula) renewed
That's it. You can live anywhere in the world and maintain Paraguayan residency.
Path to Citizenship
After 3 years of residency, you can apply for citizenship. Requirements:
- 3 years as a permanent resident
- Basic Spanish proficiency
- Knowledge of Paraguayan history (basic test)
- No criminal record
Paraguay allows dual citizenship. A Paraguayan passport provides visa-free access to 140+ countries.
Pros & Cons
Pros:
- Easiest residency requirements
- Lowest cost (both process and living)
- Territorial taxation
- Minimal physical presence needed
- Fast path to citizenship (3 years)
Cons:
- Landlocked (no beaches)
- Less developed infrastructure than Panama
- Spanish essential for daily life
- Limited international flights
- Hot summers
Paraguay + US LLC
Paraguay is an excellent complement to a US LLC:
- US LLC — Business credibility, US banking, payment processing
- Paraguay residency — Tax residency in a territorial jurisdiction
Your US LLC income from non-US clients isn't taxed in the US (assuming you're not a US person and it's not US-source income), and it's not taxed in Paraguay either.
Who Is Paraguay For?
Paraguay is ideal for:
- Budget-conscious entrepreneurs
- Those who don't need to live in their residency country
- Anyone wanting the fastest/cheapest path to a second citizenship
- Digital nomads who just need a "flag" for tax purposes
It's less ideal for:
- Those who want to actually live in their residency country full-time
- People who don't speak Spanish
- Those seeking vibrant nightlife or beach lifestyle
Need a US LLC to pair with your Paraguay residency? Learn about our formation services →