Relocation intelligence

🇵🇾 Moving to Paraguay: tax, residency and cost of living

Territorial tax system

Thinking of moving to Paraguay? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.

Key facts

Top income tax
10%
Corporate tax
10%
Capital gains
10%
Wealth tax
No
Inheritance tax
No
Cost of living index
30
Safety
3/10
Internet quality
5/10
Visa-free destinations
144
Foreigners can own property
Yes
Residency in
0 months
Citizenship in
0 years

Taxes

Paraguay taxes only income sourced within Paraguay (territorial system). Foreign-sourced income is fully exempt. The top personal income tax rate is 10%. Corporate income tax is 10%. No wealth tax, no inheritance tax.

Residency and visas

Paraguay is known for one of the simplest and fastest residency programs in the world. Temporary residency is obtainable based on proof of passive income (approx. EUR 1,300/month) or a bank deposit. Permanent residency is available after 3 years. No minimum stay requirements.

Property ownership

Foreigners may purchase and own real estate on the same basis as Paraguayan citizens. No restrictions on residential or commercial property for foreigners. Land in border zones has restrictions.

Cost of living and quality of life

The cost of living in Paraguay is very low compared to Western Europe. Asunción scores low on the Numbeo safety index (high crime index). Healthcare quality is limited. English language penetration is low. Climate is subtropical.

Passport and mobility

The Paraguayan passport grants visa-free access to approximately 144 countries/territories (Henley 2025). It ranks relatively low for a South American country. No EU visa-free access.

Residency and visas

  • Residencia Temporal por Ingresos / Jubilación · €1,300/j · Residency in 3 years
  • Residencia Temporal por Depósito Bancario · €5,000 · Residency in 3 years
  • Residencia Permanente
  • Residencia para Inversionistas · €70,000

Why people move to Paraguay

  • 10% flat tax on local income — foreign income tax-free

    Paraguay applies a strict territorial tax system: income earned outside Paraguay is fully tax-exempt. The top rate is 10% on Paraguayan-sourced income. There is no wealth tax or inheritance tax.

  • Fast and simple permanent residency with no minimum stay requirement

    Paraguay offers one of the most accessible residency programs worldwide. Temporary residency can be obtained within months based on a low passive income or bank deposit requirement. Permanent residency after 3 years, with a path to citizenship thereafter. No minimum physical presence is required.

  • Very low cost of living in the heart of South America

    Asunción is one of the cheapest capital cities in the world. Rent, groceries, and services are significantly lower than in Western Europe or North America, making Paraguay attractive for retirees and digital nomads with foreign income.

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Sources

Other destinations

AndorraUnited Arab EmiratesAfghanistanAntigua & BarbudaAnguillaAlbaniaArmeniaAngolaArgentinaAmerican SamoaAustriaAustralia