Paraguay stands out as one of the easiest and most convenient countries to get a second residency. Furthermore, its favorable tax system makes it a popular destination for those seeking a secondary residence, not just for themselves, but also for their business. The laws regulating the residency process in Paraguay have undergone significant changes, notably in 2020 and again in 2022, introducing various updates concerning the prerequisites and steps to obtain residency. This guide is already updated to reflect all these changes, including the ones that happened after September 2024 and that specifically concern the Paraguayan ID card.
Over the years, our team has assisted over 500 people from all over the globe in leveraging the Paraguay residency program. In this guide, we will go through all the available options and their requirements. If you are seeking a 1-on-1 consultation, we also remind you that it is possible to get in touch with us and receive dedicated assistance.
Temporary and Permanent Residency
The first thing to know about the Paraguay residency program is that there are two main options:
- Temporary residency is valid for 2 years, with the possibility of renewal and conversion into permanent residency.
- Permanent residency grants indefinite residence in the country and requires renewal every 10 years.
The rights that you get with both options are exactly the same. The only distinctions between the two types of residency are their validity periods and the requirements. Currently, the most straightforward and cost-effective route is to first obtain temporary residency and then convert it to permanent residency.
Temporary Residency
Anyone without ongoing criminal charges can obtain temporary residency. It is a popular way to start the residency process in Paraguay, as it does not require making investments or proving a certain level of income. All you need are a few documents to begin the procedures.
The process slightly varies for citizens of MERCOSUR countries as opposed to other countries. In general, however, the procedure always unfolds in three stages:
- Before arriving in Paraguay, one must prepare the necessary documents and have them apostilled. For most foreign nationals the required documents are a background check, the birth certificate and a valid passport;
- Upon arrival in the country, one must navigate through a series of offices (Police, Interpol, IT Department, Ministry of Foreign Affairs and Department of Migrations) to obtain the carnet de radicación temporal. This document, commonly referred to as “residency card”, takes on average 95-105 days to be issued in 2025. By working with a specialized agency, you may be able to reduce this time to 35-45 days.
- After the carnet de radicación temporal, one can approach the Paraguayan Police Identification Department to obtain the ID card (cédula). As of September 2024, it has now become strictly necessary to apply for the new format of the ID card. This is the format that incorporates the microchip and can be only obtained through electronic fingerprints and digital signature.
If you are applying for residency on your own, you will have to apply for the cédula (ID card) only after your residency card has been processed. If you apply with the help of Paraguay Pathways or other reputable immigration firms, you could be able to apply for the cédula before your residency card is printed. The identity card will still be ready only after the residency card, but through this opportunity you can apply for both documents in just one short trip.
If you want to apply for the cédula after your residency card is printed, you will have to either stay in Paraguay during the wait or schedule a second trip to apply for the ID card. If you apply for the cédula before your residency card is printed, you could stay in Paraguay for just 3-4 business days and complete the application for both documents.
At this point, all the benefits of a residency are granted. One can acquire a driving license, open a bank account, establish a business, purchase property, and based on specific circumstances, become subject to Paraguayan taxes.
For a deeper understanding of all the documents needed, we recommend reading our guide on temporary residency in Paraguay.
Permanent Residency
Permanent residency grants the right to reside indefinitely in Paraguay, with the provision of renewing it every 10 years.
There are two pathways to achieve permanent residency:
- The most straightforward method is to first obtain temporary residency and then convert it to permanent residency. You are allowed to change your temporary residency for a permanent after 21 months. In this case you will need to show a very basic proof of solvency. To know more about the process, check out our guide on converting temporary to permanent residency.
- Alternatively, one can directly obtain permanent residency by investment. This requires the commitment to invest at least 70.000$ in the country, presenting a detailed business plan that shows how the money will be invested. To obtain permanent residency this way it is only necessary to show a bank account with more than 70.000$ in funds, then the applicant is given 6 months to execute their business plan.
The residency by investment program remains consistent regardless of whether the applicant is citizen of a MERCOSUR country or not. Some benefits of obtaining permanent residency by investment include:
- Better opportunities to open a bank account in Paraguay;
- Faster processing of the residency card and the ID card, that on average are ready within 30 days;
- Faster route to citizenship in Paraguay, after 3 years of permanent residency.
Minimum stay requirements
One of the key perks of Paraguay’s residency program is that it doesn’t require you to physically live in the country to maintain your residency status. The only requirements are the following:
- Avoid making an unjustified absence from the country of 12 consecutive months during temporary residency;
- Avoid making an unjustified absence from the country of 36 consecutive months during temporary residency.
Currently, there are discrepancies between the law and what is being enforced by the Dirección Nacional de Migraciones. The national immigration office has made it clear that it does not intend to request the document called registro migratorio, which records the occasions when a person has entered and exited Paraguay. In practice, this means that the mandatory visits are not being verified.
Starting from the early part of 2025, there is talk of changing the law and officially removing the requirement for mandatory visits. That said, until the law is officially amended, we recommend that our clients continue to comply with the mandatory visits. A visit can be theoretically of just one minute, as there is no requirement to stay for a specific amount of time on each occasion you visit the country.
What are the benefits of Paraguay’s residency program?
Paraguay offers a unique suite of advantages, especially for those scouting for an attractive tax system and a swiftly growing economy. Among the reasons that drive thousands to relocate their residence here every year include:
- A corporate tax rate of 10% on net profit or a 3% on revenue under the regime for small businesses.
- The foreign tax exemption ensures zero taxation on income generated abroad by businesses or individuals.
- A capital gain tax rate of just 8%, that does not apply on profits made on crypto or capital gains realized abroad.
- Banking secrecy.
- No requirement to physically stay in the country to retain residency.
- The laws are especially entrepreneur and investor-friendly, more so for those bringing foreign capital.
- The nation is not blacklisted and permits unrestricted capital movement.
- The criteria and costs to obtain and sustain residency are among the world’s most competitive.
- The Guaraní is Latin America’s oldest currency, maintaining an average inflation rate of less than 3% over the past 50 years.
- For those considering opening a manufacturing business, Paraguay’s low labor and energy costs make it an enticing proposition.
This program is especially appealing to digital nomads. It is entirely feasible and legal to shift one’s residence to Paraguay, globe-trot throughout the year, and still retain formal residency in the country. This way, one becomes subject to Paraguay’s modest taxes and, if desired, can legitimately receive income in dollar accounts or in banks located elsewhere. If you are curious to know how you specifically could benefit from getting residency in Paraguay, feel free to get in touch.