Are you looking for the easiest and most affordable way to get a second residence in South America? Paraguay is quickly becoming one of the top destinations for global citizens, offering one of the most accessible and flexible residency programs in the world.
In this ultimate guide, you’ll learn everything you need to know about obtaining a second residence in Paraguay — from the legal requirements and step-by-step process, to the major benefits like territorial taxation, low cost of living, and long-term investment potential.
Whether you’re a digital nomad, entrepreneur, investor, or simply planning a secure backup plan, Paraguay offers a powerful combination of freedom, financial privacy, and opportunity. With no minimum stay requirements and the possibility to apply for permanent residency or even citizenship, this country is ideal for those seeking global mobility and asset protection.
Why Choose Paraguay for Second Residency?
Paraguay, located in the very heart of South America, is rapidly emerging as one of the most attractive destinations for second residency and international relocation. With a population of over 7 million people, a warm subtropical climate, and diverse natural landscapes, Paraguay offers far more than just scenic beauty — it delivers strategic benefits for those seeking personal and financial freedom.
1. High Quality of Life at Low Cost
One of Paraguay’s most compelling advantages is its affordable cost of living. Residents enjoy significantly lower expenses on housing, healthcare, transportation, and daily necessities compared to North America or Europe. The country also offers modern private healthcare services, low crime in many areas, and a welcoming, family-oriented culture — making it ideal for retirees, digital nomads, and investors alike.
2. Minimal Residency Requirements
Paraguay has some of the most flexible immigration laws in the region. With no strict physical presence requirement, you are not obligated to live in the country full-time to maintain your residence. After just three years of permanent residency, you may become eligible to apply for Paraguayan citizenship and a second passport, further enhancing your global mobility and freedom.
3. Attractive Tax System
Paraguay’s territorial tax system is one of the biggest draws for high-net-worth individuals and location-independent professionals. Under this regime, foreign-sourced income is not taxed, allowing residents to legally minimize their tax obligations. Corporate and personal income taxes are among the lowest in Latin America, making Paraguay an ideal base for entrepreneurs and investors seeking efficient wealth management.
4. Promising Investment Opportunities
As one of the fastest-growing economies in the region, Paraguay offers compelling opportunities in real estate, agriculture, and manufacturing. Its investor-friendly policies, low operational costs, and untapped market potential make it a smart choice for long-term growth. Whether you’re looking to acquire farmland, develop rental properties, or launch a business, Paraguay provides fertile ground for international investment.
In summary, Paraguay delivers a powerful combination of financial freedom, low taxes, simple residency laws, and high quality of life — all in a politically stable and investor-friendly environment. For anyone seeking a second residence with real advantages and long-term potential, Paraguay stands out as a smart and future-ready choice.
How to Acquire Temporary Residency in Paraguay
If you’re planning to stay in Paraguay longer than a tourist visa allows, applying for temporary residency is the first step toward establishing a more permanent presence in the country.
Paraguay’s temporary residence permit is initially granted for one year and can be renewed up to five times, giving you up to six years of legal residency before transitioning to permanent residence or citizenship. The process is relatively straightforward, but requires several official documents — many of which must be notarized, legalized, and in some cases translated into Spanish.
Who Should Apply for Temporary Residency?
Temporary residency is ideal for:
- Digital nomads or remote workers
- Entrepreneurs or investors testing the market
- Expats planning a long-term stay
- Students and professionals relocating to Paraguay
- Individuals preparing for permanent residency or citizenship
Required Documents for Temporary Residence in Paraguay
To apply for temporary residency, you’ll need to gather the following documents, depending on your personal situation:
General Documentation (Required for All Applicants):
- Valid passport with Paraguayan entry stamp, or national ID with proof of legal entry into Paraguay
- Criminal background check from your country of origin, duly notarized and legalized
- Birth certificate, notarized and legalized by the Paraguayan Consulate in your country and the Ministry of Foreign Affairs in Paraguay
- Marriage certificate, divorce decree, or death certificate (if applicable), also notarized and legalized
- Medical certificate issued by a certified Paraguayan doctor confirming good mental and physical health and absence of contagious diseases
- Certificate of Life and Residence issued by the local Paraguayan police, confirming your address and presence in the country
Benefits of Second Residency in Paraguay
Securing second residency in Paraguay offers more than just the right to live in a peaceful, affordable country — it opens the door to powerful advantages in terms of taxation, global mobility, and investment. Whether you’re planning a lifestyle relocation, seeking financial privacy, or preparing a long-term Plan B, Paraguay’s residency options are among the most attractive in the world.
Residence by Investment Program in Paraguay
For those who do not qualify for visa-free travel or prefer a fast-track option, Paraguay offers a residency-by-investment program that leads directly to permanent residency.
Through this program, foreign nationals can secure residency by either:
- Purchasing agricultural land or real estate, or
- Opening a registered business with a qualifying investment
The program requires a minimum investment of $70,000, which can be contributed over a period of up to 10 years. The investment serves as your share capital in a Paraguayan company and must be declared through official channels.
The biggest advantage? Thanks to Paraguay’s SUACE system (Unified System for Opening and Closing Companies), your permanent residency can be approved in as little as 20 business days — one of the fastest timelines in South America.
Relocate Your Tax Residence to Paraguay
One of the most compelling reasons to acquire second residency in Paraguay is the country’s extremely favorable tax environment. Here’s why tax-savvy expats and investors are making the move:
- No Controlled Foreign Corporation (CFC) rules
- No inheritance tax, gift tax, or wealth tax
- No tax on foreign-sourced income, thanks to Paraguay’s territorial taxation system
- Capital gains, dividends, and personal income are taxed at a flat rate of just 10%
- Corporate income is taxed only on local earnings, also at 10%
- Real estate tax is a mere 1% of the cadastral property value
In practice, most residents don’t pay income tax at all, since income generated outside Paraguay is not taxable, and the personal income tax threshold is generously low.
Simple Tax Compliance
Becoming a tax resident in Paraguay means obtaining a RUC (Registro Único del Contribuyente) — your unique taxpayer ID. With it, you gain access to Marangatu, the country’s streamlined online tax system. Filing is simple and transparent. For those with no Paraguayan income, reporting is as easy as declaring a monthly zero.
No foreign income? No problem. You’ll still be fully compliant — and enjoy the benefits of legal residency in a low-tax jurisdiction.
In summary, second residency in Paraguay offers:
- Fast-track permanent residence through investment
- One of the world’s most favorable tax regimes
- Zero tax on foreign income
- Low cost of living and high quality of life
- Strategic location in South America
- Flexible physical presence requirements
Paraguay isn’t just a place to live — it’s a smart move for anyone looking to protect wealth, reduce taxes, and gain greater global flexibility.
Permanent Residency in Paraguay: Your Path to Citizenship
One of the most powerful benefits of obtaining permanent residency in Paraguay is that it can lead to Paraguayan citizenship — and a second passport — in as little as three years.
Yes, you read that right. After maintaining permanent resident status for just three years, you can apply for naturalization and become a dual citizen of Paraguay, provided you meet a few straightforward requirements.
Does Paraguay Allow Dual Citizenship?
Yes, Paraguay permits dual citizenship, meaning you can retain your original passport while enjoying the benefits of Paraguayan nationality. However, dual citizenship laws vary by country, so it’s important to consult with an experienced immigration attorney or, better yet, receive multi-jurisdictional planning through experts like Get Residency Paraguay, especially if your home country restricts dual nationality.
Benefits of a Paraguayan Passport
Acquiring citizenship in Paraguay gives you access to a second passport with strong travel and regional advantages:
- Visa-free or visa-on-arrival access to 143 countries, including much of South America, Europe (Schengen Zone), and parts of Asia
- Full freedom of movement across Mercosur countries — Argentina, Brazil, Uruguay, and others — as part of South America’s regional free-trade and migration bloc
- A more favorable political and financial environment for those seeking a secure backup plan
- Access to investment and business opportunities in one of the world’s most promising emerging markets
Key Citizenship Requirements
While Paraguay is relatively flexible, there are still a few requirements you must meet to qualify for citizenship:
- Physical presence: You must reside in Paraguay for at least 183 days per year during the three-year period
- Basic Spanish language proficiency
- Knowledge of Paraguayan history and culture (usually verified through a simple interview or exam)
These requirements are quite manageable compared to other countries — especially given the long-term benefits of holding a second passport from a stable, low-tax jurisdiction.
Legal, Strategic, and Tax-Smart Global Planning
We’ve helped over 100 high-net-worth individuals and entrepreneurs legally reduce taxes, obtain second residencies and passports, and protect their assets around the world.
If you’re serious about citizenship planning — not just in Paraguay, but across multiple jurisdictions — we offer a tailored, legal approach that prioritizes long-term security, mobility, and freedom.
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Let us create a personalized Action Plan that matches your lifestyle, investment goals, and global aspirations.
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Territorial Taxation & Fast-Track Citizenship in Paraguay
Securing a second residence in Paraguay isn’t just a lifestyle upgrade — it’s a smart, future-proof decision that opens doors to greater financial freedom, asset protection, and global mobility.
Paraguay is one of the most welcoming and cost-effective countries in Latin America for expats and global entrepreneurs. With its territorial tax system, minimal bureaucracy, and low residency requirements, it’s easy to see why Paraguay is rising in popularity as a second residency destination.
Why Paraguay?
- Territorial Taxation: Only local income is taxed. Foreign-sourced income remains 100% tax-free for residents.
- Path to Citizenship: After just three years of permanent residency, you can apply for Paraguayan citizenship — gaining access to a second passport with visa-free travel to over 140 countries.
- Low Cost of Living: Enjoy a high quality of life for a fraction of what it costs in North America or Europe.
- Stability & Safety: One of the region’s safest and most politically stable countries.
- Ideal Plan B: With no strict physical presence requirements, Paraguay offers flexibility and peace of mind for those seeking a solid backup plan.
Whether you’re looking to reduce your global tax exposure, secure a new legal residence, or create an escape hatch in uncertain times, Paraguay ticks all the boxes.
For tailored advice and strategic planning, contact our team at Get Residency Paraguay We specialize in helping entrepreneurs and investors legally reduce taxes and diversify globally — and Paraguay is one of our top recommended countries.
Paraguay Second Residency – Frequently Asked Questions (FAQ)
What are the requirements for obtaining a second residence in Paraguay?
The requirements vary depending on whether you apply through the standard process or the investment route, but in general, you will need:
- A valid passport with entry stamp
- Criminal background check from your country of origin
- Birth certificate and (if applicable) marriage certificate
- Medical certificate from a Paraguayan doctor
- Proof of local address (Certificate of Life and Residence)
- Proof of financial solvency or qualifying investment
- Additional documents depending on your profession or immigration category
How long does it take to obtain a second residence in Paraguay?
The processing time depends on the residency type and how well-prepared your documents are.
- Standard applications usually take 3 to 6 months
- Residency by investment via SUACE can be completed in as little as 20 business days
Can I work in Paraguay with a second residence visa?
Yes. Once you obtain your temporary or permanent residency, you are legally allowed to work, open a business, or freelance in Paraguay without requiring additional permits.
Can I bring my family with me?
Absolutely. Paraguay allows family reunification, so your spouse and dependent children can apply for residency along with you. Each family member must submit their own documentation, but the process can be done together.
Does Paraguay allow dual citizenship?
Yes, Paraguay allows dual citizenship. However, you should check if your home country permits dual nationality as well. Some countries may require you to renounce your original citizenship.
What taxes do I have to pay as a resident in Paraguay?
- Paraguay taxes only local income under its territorial tax system
- Foreign-sourced income is not taxed
- Personal and corporate income tax rates are a flat 10%
- There is no inheritance tax, wealth tax, or CFC rules
Most expats with foreign income legally pay zero tax in Paraguay.
How do I become a tax resident in Paraguay?
To become a tax resident, you’ll need to:
- Register as a taxpayer by obtaining a RUC (Registro Único del Contribuyente) and filing VAT returns
Once registered, you can take advantage of Paraguay’s tax residency benefits and file online using the Marangatu system.
Ready to Make the Move?
Paraguay is a hidden gem for global citizens who want freedom, simplicity, and tax advantages — all in one place. Whether you’re just exploring your options or ready to take action, our experts at Get Residency Paraguay are here to guide you through every step of the journey.
Get in touch today and discover how Paraguay can become the smartest move in your global strategy.
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