Paraguay Permanent Residence and Cedula Program: Your Ultimate Plan B
You may not yet be familiar with the Republic of Paraguay, but the Permanent Residence and Cedula program is a compelling option for those seeking a Plan B residence program amidst the instability of our times. With a modest investment, individuals can obtain a Paraguay Residence Permit and become part of a country that boasts numerous advantages:
- Abundant Renewable Energy: Paraguay is the world’s largest electricity exporter and relies on almost unlimited renewable energy sources.
- Vast Fresh Water Reserves: The nation possesses substantial underground reserves of fresh water.
- Major Food Producer: Paraguay ranks as the world’s 5th largest exporter of beef.
- Stable Economy: Paraguay maintains a stable economic environment with no exchange or currency controls.
- Favorable Tax System: The country offers a friendly tax system, with corporate and personal tax rates set at 10%. There is no tax on worldwide income, wealth tax, capital gains tax, inheritance or estate tax, or capital acquisitions tax.
- Financial Privacy: Paraguay does not participate in CRS (Common Reporting Standard) reporting on bank or brokerage deposits.
In November 2022, President Mario Abdo Benitez implemented a new residence and migration law that has already taken effect. This updated law streamlines the residence application process, making it more efficient. Though some residence requirements have become stricter, overall, the changes are positive. For instance, applicants now receive the first Paraguayan residency card immediately upon application, significantly reducing waiting times. The following information has been fully updated to reflect the new post-2022 Paraguay Residency Program.
Reasons to Choose Residence by Investment in Paraguay:
Paraguay operates as a pro-business democracy with a government that actively encourages foreign investment. Obtaining residence in Paraguay for retirement or starting a business is a straightforward process with well-defined rules and guaranteed results if the guidelines are adhered to.
Historically, Paraguay may have been somewhat isolated due to geography and politics, but it has embraced an international outlook since 1992. The country has made improvements to its residence programs, specifically designed to streamline the application process for foreigners who can contribute to its development.
Two Routes to Obtain Residence in Paraguay by Investment:
Individuals seeking residency in Paraguay through investment have two main options, excluding traditional channels like marriage or family reunification.
Traditional Route: Two Years of Temporary Residency Followed by Permanent Residency – Minimal Investment Requirement
Any individual or family can apply for residence in Paraguay by signing a declaration stating their intention to practice a profession, start a business, or demonstrate the financial resources to support themselves in the country without employment.
The process begins with collecting the necessary documents in the applicant’s home country and submitting scans to White and Partners for launching the residence application process at the National Immigration Office in Asuncion.
Upon filing their applications, applicants receive a “Precarious Residence Card,” valid for 90 days but not renewable. It allows them to reside in Paraguay while their Temporary Residence Permit application is processed. During this period, applicants can initiate company formation or apply for a tax number in Paraguay.
Temporary Residency is typically granted within this 90-day period, valid for two years, and allows applicants to apply for a Paraguay Cedula (national ID card) with the same duration. This new cedula allows for the opening of local bank accounts, obtaining a Paraguayan driver’s license, and other rights similar to Permanent Residents or Citizens.
Before the two-year Temporary Residence Permit expires, individuals may apply for Permanent Residence status. Additional documents will be required to support the statements made during the temporary residence application process. Notably, demonstrating substance behind the residence application is essential for obtaining Permanent Residence, which can be achieved by forming a company or purchasing real estate in Paraguay.
Expedited Permanent Residency in Paraguay: The SUACE Route
The SUACE business residency by investment program in Paraguay offers an alternative path to jump straight to the 10-year Permanent Residence status, bypassing the need for two years of Paraguayan Temporary Residency.
Ideal for those starting a business or establishing a branch/representative office of their existing foreign company, this route requires a minimum investment of US$70,000. The investment amount does not need to be directly deposited or shown in the bank account. Instead, the investor is required to spend the investment amount over ten years, supported by a simple business plan.
The SUACE program aims to stimulate the economy by fostering new companies and job creation, making it less suitable for retirement purposes. However, it may be an attractive option for retired individuals looking to start small consulting or family office businesses.
Documents Required for Paraguay Residence and Cedula:
Regardless of the chosen route, the basic documents required for the residence application include:
- Birth Certificate;
- Marriage certificate (if applicable);
- Police criminal records certificate from the country of birth and any country resided in over the past ten years.
These documents must be certified by apostille or legalized by the Paraguayan consulate in the issuing country. Компания White and Partners offer assistance in obtaining certified translations to Spanish and necessary local legalizations as per official requirements. A local police registration certificate and clearance certificate from the Paraguayan Interpol office are also obtained by White and Partners’ staff on the ground.
(Note: Medical checkups or certificates are no longer obligatory as of November 2022.)
Opening Bank or Brokerage Accounts in Paraguay:
While it is no longer mandatory to deposit funds in a local bank to apply for Temporary Residence, it is highly recommended to open a local bank account and deposit funds to support reasonable living expenses after obtaining Temporary Residence.
Local banks offer deposit accounts in both US dollars and PYG local currency, with attractive rates of return in Paraguay’s booming emerging economy. White and Partners provide assistance in opening bank accounts in Paraguay, either in person or online, as an additional service with Paraguay Residence by Investment assistance.
For non-residents seeking to partake in the Paraguayan economy without obtaining residence, brokerage houses that open accounts for non-residents offer opportunities to purchase Paraguayan stocks and bonds, as well as fiduciary deposits in Paraguayan banks.
Citizenship in Paraguay:
Paraguay does not have a formal Citizenship by Investment program. However, successful applicants under the Residency by Investment programs may apply for citizenship after three years of Permanent Residency. The requirements include fluency in one of the two national languages (Spanish and Guarani), knowledge of the political constitution of Paraguay, and a track record of residence and integration in the country.
Dual or Multiple Citizenship in Paraguay:
The Paraguayan Constitution allows for dual or multiple citizenship under specific circumstances, such as by international treaty or reciprocity between the States of origin and adoption. Currently, the only country with such a treaty in force is Spain. However, renouncing one’s other nationality is not typically required by the Paraguayan authorities. As each case is unique, individuals interested in holding dual citizenship in Paraguay are advised to consult a qualified Paraguayan attorney.
Get Started Today with Residence in Paraguay:
Considering Paraguay’s promising opportunities, the White and Partners Residence by Investment program is an attractive path for individuals seeking stability and investment prospects in this progressive nation.
Our team is always ready to provide high-quality advice and help in solving any tasks you set. Subscribe to our pages on social networks. If you have any questions, want to order services or consultations from us, then follow this link or write to us on WhatsApp/Viber/Telegram +380 98 363 6493 or call us.