Opening a bank account in Paraguay, especially for foreigners, can come with its fair share of challenges. Even if you already have your temporary or permanent residency and your cédula, it’s not uncommon to still face difficulties in opening an account. This is due to a set of rather unique regulations that shape how the banking system operates in Paraguay.
That being said, you can successfully open a bank account if you follow the right steps. Before diving into the details, it’s important to note that while there are slight differences from one bank to another, most of the concepts remain the same.
Opening a personal bank account
The essential requirement for opening a personal bank account is having your cédula, the Paraguayan ID card. Typically, it takes about 24-48 hours after the ID card is issued for it to be registered in the database that banks use to verify if the document is official and valid.
With just a cédula, you can open a cuenta básica (a “basic account“). This is a very limited checking account, but it’s still effective for small expenses. With a basic account, you can deposit up to three times the minimum wage per month. As of now, that’s around $1,100.
Usually, a basic account doesn’t allow you to receive money from abroad. To move money into their Paraguayan account, foreigners often use different methods:
- Western Union
- Withdrawing cash and depositing it into the Paraguayan account
- Specialized intermediaries for these types of transactions
The reason why the basic account is so limited is that Paraguay has strict banking secrecy laws. This form of banking secrecy is very strong—even the government and authorities in Paraguay can’t access information like a person’s bank account balance. As a result, there’s a risk that the system could be exploited for illegal activities and money laundering. The strict regulations and limits on basic accounts are specifically designed to prevent these kinds of situations.
From a basic account to a full one
Clearly, the basic account comes with some pretty obvious limitations. When you need more than just a tool to cover everyday small expenses, it’s time to consider getting a full bank account.
To unlock a full bank account, you need to prove the origin of your funds. This is where things can get tricky, especially if the funds are coming from abroad. For instance, if you receive a pension from another country, you may need to obtain a certificate from your home country, have it apostilled, and then translated. Many banks will also require you to cross-reference the information on the certificate with your bank statement.
If you have any doubts or run into difficulties, we can help you get your account in Paraguay. Visit our contact page, and we’ll be happy to assist you in opening a full bank account in Paraguay.
Things are easier if you have an RUC (tax ID) and can prove you have income from Paraguayan sources. In this case, you’ll just need to present:
- The constancia de RUC, the document that confirms you have registered for it;
- The certificado de cumplimiento tributario, which shows that you are up to date with your tax payments;
- Your monthly tax returns for the last 6-12 months.
If you can demonstrate that you’ve had a real economic activity for over 6 months, opening a bank account becomes quite straightforward.
Opening a Business Account
Opening a business bank account is more challenging than opening a personal account, especially if the company has partners or managers who aren’t Paraguayan citizens. Once again, the simplest solution is to prove that you’ve started a real business, with incoming and outgoing invoices and a healthy cash flow.
However, an obvious problem arises: a company can’t start its operations without already having a bank account. This creates a loop where banks want to see legitimate financial transactions before granting a business account, but the company needs a bank account to move money in the first place. So, how do you break out of this cycle? The simplest answer is to buy a shelf company.
Many accountants in Paraguay specialize in this. They set up companies with very generic articles of incorporation and open a bank account for each one. A foreign client can then buy the company and take over its bank account directly. This is a very common practice, and we also offer ready-to-use shelf companies with bank accounts that can receive money both from Paraguay and abroad.
Best Banks in Paraguay
The most recommended banks for handling international transactions are:
- Itaú – A large Brazilian bank with a local division in Paraguay. It’s the largest bank in Paraguay by assets under management and profits.
- Banco Nacional de Fomento – The Paraguayan government bank, not to be confused with the central bank. It’s great for those who need branches even in the most remote areas of the country. It also offers accounts in guaraní, U.S. dollars, and euros.
- Ueno – The first fintech company in Paraguay. Perfect for quickly opening an account directly from your smartphone. They offer a very attractive cashback system at dozens of stores and restaurants.
- Sudameris – Another bank with an excellent cashback system, but it has rather high fees for transferring money from abroad.
One important thing to remember is that government deposit insurance by law covers up to 75 times the minimum wage. Currently, this is about $26,000 at the current exchange rate. This makes it crucial for those looking to keep large sums in their bank account to rely on a very solid bank. Once your account balance exceeds $26,000, it might be wise to consider diversifying your risk across multiple accounts.