South America Residency Comparison: Why Paraguay, Argentina, and Colombia Are Top Choices in 2025

Are you thinking of relocating to South America and wondering which country offers the best residency program? You’re not alone. With its growing popularity among expats, South America has become a top destination for individuals seeking affordable living, favorable tax regimes, and easy access to permanent residency. Among the leading options, Paraguay, Argentina, and Colombia stand out for their unique advantages and accessible residency programs.

But how do these programs compare? Which one suits your needs best—whether you’re a digital nomad, retiree, or investor? In this guide, we break down each country’s residency requirements, tax implications, and lifestyle benefits to help you make an informed decision.

The residency landscape in South America is changing rapidly. For example, Paraguay eliminated the $5,000 bank deposit requirement in 2023, making its residency process even simpler and more appealing. At the same time, Colombia’s investor visa has become increasingly popular, while Argentina’s rentista visa continues to attract retirees and freelancers from around the world.

Whether you’re looking for a tax-friendly solution, a vibrant cultural experience, or a second residency with minimal bureaucracy, South America has something for everyone. Let’s dive deeper into the specific residency programs and find out which country is right for you.

1. Residency in Paraguay: The Simplest Path to Permanent Residency

For those seeking a simple and affordable residency process, Paraguay is an excellent choice. Known for its minimal bureaucracy and low cost of living, Paraguay’s program is particularly attractive for digital nomads, retirees, and global entrepreneurs. Recent changes in 2023 have further simplified the process by removing the $5,000 USD bank deposit requirement, making it easier than ever to apply for temporary residency.

Residency Process in Paraguay

Paraguay offers a straightforward path to temporary residency, which can be converted to permanent residency after fulfilling specific requirements. Here’s how the process works:

1. Temporary Residency: This is the first step and is valid for two years. It can be renewed or converted to permanent residency once the conditions are met.
2. Permanent Residency: After living in Paraguay for two years as a temporary resident, you may apply for permanent residency.
3. Citizenship: After three years of permanent residency, you can apply for Paraguayan citizenship.

Why Paraguay?

• No Worldwide Taxation: Paraguay’s territorial tax system means you only pay taxes on income generated within the country. This is ideal for those with global income sources.
• Affordable Lifestyle: With one of the lowest costs of living in South America, Paraguay offers a relaxed and affordable lifestyle. Housing, healthcare, and everyday expenses are significantly cheaper compared to neighboring countries.
• Fast and Efficient Process: While you don’t get permanent residency on day one, the temporary residency process is relatively quick, usually taking 3–6 months to complete.

Lifestyle in Paraguay

Paraguay is known for its warm climate, friendly locals, and tranquil pace of life. Asunción, the capital city, is a growing hub for expats, offering a mix of traditional culture and modern amenities. If you prefer a quieter life, Paraguay’s countryside offers beautiful landscapes and wide-open spaces.

However, it’s important to note that Paraguay’s infrastructure is still developing, and some services might not be as advanced as in neighboring countries like Argentina or Brazil. Still, for those looking for a peaceful, tax-friendly country, Paraguay is a fantastic option.

2. Residency in Argentina: A European Lifestyle in the Heart of South America

For those seeking a blend of European charm and Latin American culture, Argentina stands out as an attractive destination. Buenos Aires, often referred to as the “Paris of South America,” offers a vibrant cultural scene, world-class cuisine, and a cosmopolitan lifestyle. While Argentina’s residency process is more complex than Paraguay’s, it remains a popular choice for retirees, freelancers, and entrepreneurs looking for long-term relocation options.

Residency Types in Argentina

Argentina offers several pathways to residency, depending on your circumstances:

• Rentista Visa: Ideal for individuals with passive income (such as rental properties or pensions). You must show a minimum monthly income of $2,000 USD.
• Work Visa: For those employed by an Argentinian company.
• Investor Visa: Requires an investment of at least $100,000 USD in a local business.
• Student Visa: For individuals enrolled in accredited educational institutions.

Temporary residency is typically granted first and can be converted into permanent residency after two years of continuous residence. Citizenship can be obtained after just two years of permanent residency, making Argentina one of the fastest countries in the world to offer citizenship.

Taxation in Argentina

Unlike Paraguay’s territorial system, Argentina operates on a worldwide tax basis, which means that residents are taxed on income earned both locally and abroad. This might be a drawback for some, but tax planning strategies can help mitigate the impact.

The Lifestyle Advantage

Argentina offers a high quality of life at a relatively low cost compared to Europe or North America. Buenos Aires is known for its European-style architecture, thriving arts scene, and café culture, while regions like Mendoza and Patagonia offer stunning natural landscapes and outdoor adventures.

Additional perks include access to free public healthcare and tuition-free university education for residents and their families.

Who Should Consider Argentina?

• Retirees seeking a lively yet affordable destination with a rich cultural life.
• Entrepreneurs and freelancers who want to live in a major city with excellent infrastructure.
• Families looking for long-term opportunities in a country with strong education and healthcare systems.

However, it’s important to note that the residency process can involve more bureaucracy compared to Paraguay. Be prepared for longer processing times and occasional administrative hurdles. Despite these challenges, many expats find the experience well worth it once they settle into Argentina’s vibrant way of life.

3. Residency in Colombia: A Fast-Growing Favorite Among Expats

Colombia has quickly become one of the top destinations for expats in South America. With its vibrant cities like Medellín, stunning natural landscapes, and affordable cost of living, it offers a compelling combination of modern amenities and Latin American charm. Colombia’s residency program is accessible, with multiple pathways depending on your financial situation or lifestyle needs.

Residency Options in Colombia

Colombia offers several visa categories that can lead to temporary and eventually permanent residency:

• Migrant Visa (M-Type): This is the most common route for foreigners. It includes options for retirees (pensionado visa), investors, and individuals with family ties.
• Retiree (Pensionado) Visa: Requires a monthly income of at least 3 times the minimum wage (around $750 USDas of 2025).
• Investor Visa: Requires an investment in real estate or a local business of at least 100,000 USD equivalent in Colombian pesos.
• Work Visa: For those employed by a Colombian company.

Temporary residency (Migrant Visa) is valid for up to 3 years. After 5 years of continuous residency, you can apply for permanent residency.

Taxation in Colombia

Colombia follows a worldwide taxation system. However, you only become a tax resident if you spend 183 days or more in the country during a calendar year. It’s important for expats to carefully plan their time in Colombia and seek professional tax advice to avoid unexpected liabilities.

Life in Colombia: Modern Cities and Affordable Living

Colombia’s lifestyle varies significantly depending on where you choose to live:

• Medellín: Known as the “City of Eternal Spring” for its perfect climate, Medellín is a favorite among digital nomads and retirees. It offers modern infrastructure, excellent healthcare, and a thriving expat community.
• Bogotá: The capital city is a cultural and economic hub, known for its vibrant art scene and diverse food culture.
• Cartagena: A coastal city with a rich colonial history, ideal for those who prefer beach living with a Caribbean vibe.

Colombia’s cost of living is affordable, especially compared to North America or Europe. You’ll find high-quality healthcare at a fraction of the cost, modern transportation systems, and an increasing number of coworking spaces for remote workers.

Who Should Consider Colombia?

• Digital Nomads and freelancers looking for modern infrastructure and a lively community.
• Retirees seeking affordable healthcare and a warm climate.
• Investors interested in real estate in growing markets like Medellín or Bogotá.

While Colombia offers great benefits, it’s worth noting that the residency process is detailed and requires strict documentation, especially for investor and retiree visas. However, with the right preparation, it’s a highly rewarding destination for long-term residency.

Ready to Start Your New Life in Paraguay?

If you’re looking for a tax-friendly, affordable, and straightforward residency option, Paraguay could be your perfect match. With recent changes simplifying the process, it’s never been easier to take the first step toward temporary residency and eventually permanent status. Whether you’re a digital nomad, entrepreneur, or retiree, Paraguay offers the ideal environment to grow and thrive.

Contact us today to learn more about how we can help you navigate the residency process in Paraguay and ensure a smooth relocation experience.
Let’s make your South American dream a reality!