With the enactment of Law 6984/2022, it is no longer necessary to deposit $5,000 in a bank to obtain residency in Paraguay. This is a common question about the Paraguayan residency program, and it is highly likely that those unaware of this change are also unaware of all the other updates brought about by this law. As this is one of the most frequent doubts from foreigners wishing to establish a second residency in our country, we decided to clarify all uncertainties with this guide.
We would like to point out that our firm has successfully handled over 80 residency applications since the enactment of Law 6984/2022, so we are always up-to-date on regulatory changes. For those seeking private consultation, we also remind you that it is always possible to contact our firm and receive dedicated assistance on everything related to residency, taxes, and law in Paraguay.
The Changes of 2022
In 2022, a very important change to the requirements for obtaining residency in Paraguay was introduced. The first is that it is no longer necessary to prove one’s financial solvency, which previously had to be demonstrated by making a deposit of $5,000 in a bank. At the end of the process, the deposited money could be reclaimed, and one would gain the right to permanent residency in the country.
There were three major changes in 2022:
- The requirements to obtain permanent residency immediately have changed and have become considerably more stringent;
- The requirements to obtain temporary residency and to convert temporary residency into permanent residency have become simpler;
- Neither the medical certificate nor the $5,000 deposit are required anymore.
Changes for Permanent Residency
Now, it is possible to obtain permanent residency in two ways. The first is to obtain permanent residency immediately, and the second is to obtain temporary residency first and then convert it to permanent residency. The latter option is definitely simpler, faster, and less costly.
- If you wish to obtain permanent residency immediately, you must qualify as investor at SUACE, the Paraguayan entity responsible for mediating between the government and private companies. To qualify for immediate permanent residency you need a business plan showing a minimum investment of $70,000 and the creation of at least 5 jobs, along with a sworn statement to implement the business plan.
- Alternatively, it is possible to first obtain temporary residency and then convert it to permanent residency. In this case, the process is very simple and does not require any investment or bank deposit.
One thing that has not changed is that temporary residency must be renewed every 10 years.
Changes for Temporary Residency
Now, temporary residency has become more important than before, precisely because it is now a fundamental step to easily obtain permanent residency. Over 95% of our clients in 2023 first obtained temporary residency and then converted it into permanent residency.
In this case, the first change is that no bank deposit is required anymore. The second major change is that it is no longer necessary to obtain a health certificate from a Paraguayan doctor, which was a requirement before the latest reform.
After 21 months of obtaining temporary residency, it is already possible to convert it into permanent residency. In this case, it will be necessary to demonstrate one’s financial solvency, but without any deposit:
- For students, it is only necessary to present a certificate of enrollment in a Paraguayan school or university;
- For freelancers, one can present their invoices, professional qualification certificate, or a degree certificate showing the ability to work as an independent worker;
- For entrepreneurs or majority partners of companies, it is enough to show the company’s shareholder register and its statutes;
- For retirees, it is sufficient to demonstrate this condition through relevant documents.
The validity of temporary residency is always 2 years, and it can be both renewed and converted into permanent residency.
Need Help with Residency in Paraguay?
If you need help obtaining residency in Paraguay, feel free to send us an email. Paraguay Pathways specializes in providing services related to residency, taxes, and legal matters to citizens of non-MERCOSUR nations. We understand how challenging it can be to find accurate and relevant information about the Paraguayan legal and tax system, and our goal is to simplify all of this. We have been doing this for over 5 years and have already helped 300+ people obtain their second residency, even after the 2022 reform.