Tax Residency in Paraguay: The Minimum Stay Required

If you’re trying to understand how to become a tax resident in Paraguay in 2025, you’ve likely seen conflicting claims. You can find sources claiming that you need to spend a minimum of 0 days, 90 days, 120 days, 183 days per year in the country to be fully considered a tax resident.

Here’s the clear picture based on the actual legal sources used in practice: there is no statutory minimum-day requirement to be considered a tax resident of Paraguay. This guide explains the difference between tax residency and domicile, where the “120 days” myth comes from, how General Resolution 65/2020 really works for the tax residency certificate, why the Constancia de Movimiento Migratorio is requested, and what you must still do (e.g., manage your RUC and pay taxes) to keep your position solid.

If you are looking for professional help to establish your residency in Paraguay, both at a migratory and fiscal level, feel free to contact us at any time. As the largest immigration and tax firm in Paraguay, we will be looking forward to working with you.

Key Takeaways

• No legal minimum-day rule exists in Paraguayan law to be considered a tax resident.
• The famous “120 days rule” appears in Law 125/1991, Article 152, but it concerns domicile (address), not tax residency.
• General Resolution 65/2020 governs the current process to obtain the tax residency certificate; it does not impose any days-in-country threshold.
• The Constancia de Movimiento Migratorio (entries/exits record) is required by protocol, not as a day-count test.
• You still need to properly manage your RUC to make sure that Paraguay considers you a tax resident.

The Legal Foundations You Should Rely On

Paraguay has two pillars you should use as your reference:

• Law 125 of 1991 (the first major modern tax reform; later reforms in 2004 and 2019 kept the same approach regarding day thresholds). In other words, what applied in 1991 remains the same today concerning the absence of a minimum-day test for tax residency.
• General Resolution 65 of 2020 (GR 65/2020), which sets the current criteria and process to obtain a tax residency certificate. Before this, GR 87/2012 existed and required a different process. Some sources haven’t updated yet to the 2020 framework.

Common-sense note: if Paraguay issues you a tax residency certificate, it is recognizing you as a tax resident. There would be no scenario where Paraguay denies your tax residency yet hands you a certificate confirming it.

What GR 65/2020 Actually Requires (and What It Doesn’t)

If you read GR 65/2020 carefully, you will not find any clause stating you must spend a fixed number of days in Paraguay. You will see a procedural requirement to submit certain documents:

1. Your certificado de cumplimiento tributario (“tax compliance certificate”), which confirms that your RUC is up-to-date with all necessary tax filings.
2. The Constancia de Movimiento Migratorio—an official report listing your entries and exits from Paraguay. It costs roughly 40$ and can be obtained online through the Portal Paraguay.

You can find all the details in our guide dedicated to the tax residency certificate. Understandably, some people may wonder why the Paraguayan tax authority demands a document that lists all the times in which you have entered and left the country. In reality, there’s no substantive “days” test behind it. In practice, it’s a protocol item: the checklist says bring it—so bring it.

Will they deny your certificate for “not enough days”? In extensive, repeated experience handling hundreds of applications, no—not on the basis of days in the country.

On the other side, the RUC and all related tax filings are checked very carefully during the 10 business days that the DNIT (the local tax authority) will take before issuing the certificate.

The “120 Days” Myth for Tax Residency in Paraguay

Many websites—even very large firms—continue to repeat the 120-day claim. The source of the confusion is Law 125/1991, Article 152, which discusses the “domicile of natural persons.” That article is about domicile (address), not tax residency.

We publish here the original text of the law and a word-by-word translation of it. To understand what the law says, it is crucial to remember the distinction between domicile and tax residency. You are considered a tax resident in a certain country (e.g. Paraguay), and this determines in which country you will face your tax obligations. You are instead considered domiciled at a certain address (e.g. Avenida Aviadores del Chaco 584), and this determines the address where your vital interests are based within the country.

Article 152 (Spanish original)

Artículo 152.– Domicilio de las personas físicas. Se presume que el domicilio de las personas físicas en el país es:

1. El lugar de su residencia habitual la cual se presumirá cuando permanezca en ella por más de ciento veinte (120) días.
2. El lugar donde desarrolle sus actividades civiles o comerciales, en caso de que no exista residencia habitual en el país o que se verifiquen dificultades para su determinación.
3. El domicilio de su representante.
4. El que elija el sujeto activo en caso de existir más de un domicilio en el sentido de este artículo o de plantearse dudas acerca de la tipificación de las hipótesis descritas en los numerales precedentes. Si no pudiere determinarse la existencia de domicilio en el país, se tendrá por tal el lugar donde ocurra el hecho generador.

Plain-English summary (faithful to the text)

Paraguay presumes a natural person’s domicile to be:

1. Their habitual residence, presumed when the person stays there more than 120 days.
2. The place of civil or commercial activities if there’s no habitual residence or it’s hard to determine.
3. The domicile of their representative.
4. The place chosen by the active subject if more than one domicile exists under this article or if doubts arise.
   If domicile in Paraguay still can’t be determined, the place where the taxable event occurs is deemed the domicile.

The critical distinction:

• Tax residency = which country has primary taxing rights over you.
• Domicile = your legal address (e.g., what your bank wants when it asks for a utility bill or lease).

So, 120 days in Article 152 only creates a presumption of habitual residence for domicile purposes. It does not create a minimum-day rule for tax residency. And Article 152 provides three other valid pathways to establish domicile without any day count. And it is not even the only legal way to establish a legal domicile in Paraguay.

Under Article 152, you can validly establish domicile in Paraguay via any of the following—not only by spending 120 days:

1. Habitual residence (>120 days) at the same address.
2. Place of civil/commercial activities if there’s no habitual residence or it’s hard to determine.
3. Your representative’s domicile.
4. Choice of domicile by the active subject when multiple options or doubts exist; failing that, the place of the taxable event.

This is why services like our proof of domicile are perfectly coherent with the law—even when your physical stays in Paraguay are sporadic. We can legally domicile our clients at any address we own, as long as our clients choose to elect us as their representatives in the country.

What if I Spend Less Than 120 Days per year in Paraguay?

Nothing changes for tax residency.

• Spending >120 days at the same address simply triggers a presumption of habitual residence for domicile. Your domicile will be automatically deemed to be in the place where you have spent over 120 days.
• Spending <120 days means your domicile is determined via one of the other three lawful criteria in Article 152.
• Tax resident status itself does not hinge on a days-in-country threshold in Paraguayan law.

What You Still Must Get Right (Beyond “Days”)

While days aren’t the test, your compliance posture matters:

• Obtain and maintain your RUC (Registro Único de Contribuyentes).
• File and pay at least some tax in Paraguay in line with your situation.
• Follow GR 65/2020 procedural requirements (e.g., provide the Constancia de Movimiento Migratorio and other requested documents).
• Keep documentation consistent with your chosen domicile pathway under Article 152.

Moreover, it is important to note that you have to comply with the criteria to maintain your temporary residency or your permanent residency. If you lose your personal residency in Paraguay, you will automatically lose your tax residency as well. This happens, for instance, if you commit any violent crimes in Paraguay during your Temporary Residency or if you forget to visit the country every 36 months during your Permanent Residency.

Conclusion

The legal reality is straightforward: Paraguay does not require a minimum number of days in the country to recognize you as a tax resident. The persistent “120-day” claim confuses domicile with tax residency and overlooks the three other domicile options in Article 152. Focus on what truly matters: comply with GR 65/2020, keep your RUC healthy, pay taxes appropriately, and ensure your documentation aligns with one of the lawful domicile pathways. That’s how you build a clean, defensible Paraguayan tax residency position.

If you are looking to establish your tax residency in Paraguay and you are looking for a team of professionals that can help you along every step of the way, feel free to get in touch with us. We will be happy to assist you during your residency process and to take care of all the fiscal aspects involved.

7) FAQs — Clearing Common Doubts