Paraguay permanent residence Programm

Paraguay is famous in the digital nomad community for having the easiest permanent residence program in the world. This, combined with the territorial taxation system and the lowest cost of living in South America, makes it quite an interesting lodging option.

Procedure

In an effort to attract foreign talent, the Paraguayan government greatly simplified the process of applying for permanent residence in 2010. Under the new program, anyone with a clean criminal record can apply for the program. It takes from three months to a year, but the physical presence in the country is required only at the initial stage. Paraguay, as part of the Latin American planet, is corrupt, and the local migration service is rife with fraud. This means that you must always be careful and use only well-known agents. It also means that until you actually hold your certificate of permanent residence, there is no guarantee that everything will go according to plan.

As stated above, all you need to qualify is a clean criminal history and some money to deposit in Paraguay. Before leaving your home country, you need to prepare the following documents:

1. Checking the criminal past;
2. Birth certificate;
3. Paraguayan visa (if required for your passport);
4. Passport photo;
5. Additional documents may be required (for example, marriage certificate, divorce certificate, court documents in case of a criminal record, etc.).

Please note that your documents must be with the Hague Apostille – with the exception of documents from countries that have not signed the Hague Convention, they must be legalized at the Embassy or Consulate of Paraguay. Documents from the US and most European countries require a Hague Apostille, not consular legalization.

Your next step will be to travel to Paraguay and go through the application process. Essentially, it looks like this:

1. Meeting with a local lawyer;
2. Removal of biometric data;
3. Notarization of the visa;
4. Deposit funds to a personal account;
5. Preparation and certification of the affidavit;
6.Visit to the local police station to check biometric data and provide photos, etc.
7. You give the immigration attorney power of attorney to complete the process for you.
8. If approved, approximately four months later you receive a residence permit;
9. Your bank deposit is unlocked and can be withdrawn.

You can apply on your own or with the help of an immigration lawyer. Our recommendation is to contact migration specialists. Lawyers from White and Partners will provide you with high-quality support and help at every stage.
The entire process of processing and submitting documents can take from three months (if all documents are ready, they are in perfect order and translated) and up to a year. Physical presence in Paraguay is only required at the time of application. As an added bonus, you can travel to most South American countries with a Paraguayan Permanent Resident ID instead of a passport.

Taxation

Paraguay is a country that uses the territorial principle of taxation.
This is a system of taxation under which the income of both residents and non-residents is taxed only if their sources are within the territory or jurisdiction of that state. In practice, this means that it is possible to live in Paraguay without paying world taxes, but provided that the correct structure is used.
According to the tax code of Paraguay, a tax resident of a given country is an individual who resides in the country for at least 120 days in a given tax year OR has a permanent residence and maintains his main place of residence in Paraguay. Tax residents and non-residents must file an annual tax return if their local income exceeds a minimum threshold. According to Paraguay’s tax code, the fiscal year is a calendar year that starts on January 1st and ends on December 31st. Income tax applies to income from employment, income from doing business, as well as income from investments, royalties and dividends. The rate is 10% (8% for the poor). Capital gains are also taxed at 10%, VAT is 10%, corporate income is also 10%.

For a detailed consultation and further calculation of the cost, terms and necessary documents, please contact White and Partners specialists by clicking on this link.