Many people are under the impression that Paraguay offers a citizenship by investment program , probably due to the straightforward process of obtaining residency in the country. However, there isn’t actually a program allowing immediate citizenship in this manner.
Acquiring Paraguayan citizenship for those born abroad is relatively straightforward, yet it requires accumulating three years of residency before applying. In this guide, we’ll precisely explain the Paraguayan law concerning citizenship and investment by foreign individuals.
It’s crucial not to confuse the theme of citizenship/passport with permanent residency through investment, which remains a valid program available in Paraguay.
Citizenship by Investment in Paraguay: What’s the Law?
The primary law governing citizenship for those born abroad to non-Paraguayan parents is Article 148 of the Constitution. Article 148 stipulates that Paraguayan nationality can be granted through naturalization, meaning when an individual has demonstrated a deep connection with Paraguay’s economy, culture, and its people. The criteria for naturalization include:
- Residency in Paraguay for at least 3 years.
- Evidence of employment, either self-employed or as an employee, during these 3 years.
At this stage, a process unfolds over approximately six months. An application for naturalization is submitted to the Supreme Court of Justice through a lawyer, presenting one’s case along with all necessary documentation. If the documentation is in order, the applicant undergoes an examination in Paraguayan language, culture, and history. Achieving a score of at least 21 out of 30 allows the request for the Carta de Naturalización (Naturalization Certificate) and subsequently obtaining citizenship. Following this, one can apply for a passport, typically received within 3 months from the date of application.
Throughout this process, there’s no requirement for an individual to make any investments in Paraguay, nor is there a way to expedite procedures simply by investing capital.
Citizenship vs Residency through Investment: Don’t Mix Them Up!
In Paraguay, there exists a program enabling permanent residency through an investment of at least $70,000. In this case, permanent residency is obtained immediately, without having to wait for two years as required for those who acquire temporary residency first (which doesn’t involve a minimum investment).
Gaining the right to reside allows an individual to work, live permanently, invest, and conduct business in Paraguay without any limitations. It’s a highly advantageous option for those seeking a second residency as a backup plan or simply to benefit from Paraguay’s favorable tax advantages and economic conditions. However, this doesn’t grant the right to vote or a passport.
Only after spending 3 years as a resident can one apply for naturalization, the process through which a foreign citizen is recognized as “naturalized” in Paraguay to deserve citizenship. At this stage, one can commence the process described in the previous paragraph, potentially culminating in obtaining Paraguayan citizenship.