Where to Establish Residency and Why?

Choosing the right residency is increasingly important today. There are many reasons to consider it, from seeking greater freedom to navigating the growing restrictions in places like Europe. Motivations differ, but having options is essential.

There are many countries with interesting residency offerings, but Paraguay stands out as one of the best choices currently. Below are reasons why we think Paraguayan residency offers the best value for investment.

Why Choose Paraguay?

1. Simple, Affordable, and Fast Residency Process
   Paraguay offers one of the easiest, most cost-effective, and quickest residency processes worldwide. Despite the immigration law passed in late 2022 (Law 6984), it remains more straightforward than countries like Panama, Uruguay, or Caribbean islands, where significant investments are often required. Paraguay has no such conditions.

2. Ideal for Family Life
   Paraguay is well-suited for those seeking a calm, family-oriented environment. Asunción, the capital, may not offer the vibrant nightlife of cities like Miami, but it is safe and affordable. Living in the best neighborhoods costs less than in Europe or the US, and complex security measures, common in other Latin American countries, are unnecessary.

3. Education Options Available
   The Paraguayan education system is not among the best, but solutions exist. The education system and its associated challenges are not unique to Paraguay; similar issues are faced by European and American countries. This is a general problem with institutional education. In Paraguay, there are many private schools that offer quality education at a lower cost than comparable schools in the United States or the EU.

4. Minimal Residency Obligations
   Unlike many residencies that come with numerous requirements, Paraguay imposes few responsibilities. Residents must follow the law but face almost no other obligations, making it an ideal second home or backup plan.

5. Flexible Physical Presence Requirements
   Residency in Paraguay does not require living in the country. Temporary residents are no longer required to visit annually; instead, they must enter between the 21st and 24th month to apply for permanent residency to maintain their resident status. Permanent residents need only visit once every three years.

6. Favorable Taxation
   Paraguay uses a territorial taxation system for individuals, meaning income earned outside the country—such as from stocks, bonds, or crypto—is not taxed. Only income generated within Paraguay territorry is subject to a 10% tax.

7. No CRS Reporting
   Paraguay has not adopted the Common Reporting Standard (CRS), so residents’ financial information is not shared with other countries. There are no plans to join CRS in the near future. While the banking system is not the most advanced, it is functional and developing very quickly in recent years.

8. Easy Bank Account Setup
   With a Paraguayan ID card (cédula), opening a local bank account is straightforward. Accounts can be held in guaraní (local currency) or US dollars. Paraguay’s absence from financial blacklists ensures smooth international transactions (even though sending and receiving money comes with greater costs).

9. Freedom from EU Insurance Mandates
   By obtaining Paraguay residency and relinquishing EU residency, individuals are exempt from European social security and healthcare insurance requirements. Private global health insurance plans are often more affordable and provide high-quality services, including better and adjustable coverage.

10. Access to Latin America
    A Paraguayan cédula allows travel within Mercosur countries (Argentina, Paraguay, Uruguay, Brazil, Bolivia) without a passport for those with visa-free access to those countries based on their passport. This enables long stays in one’s home country using a native passport while having open doors in most South American countries.
    If your passport requires a tourist visa into the country then Paraguayan cedula won't help you for Mercosur travels.

11. Low Cost of Living
    Paraguay offers significant savings on living expenses. For one person, monthly costs can range from $700 (small apartment in a safe but less desirable neighborhood, cooking at home), $1,000 (nice apartment in a good neighborhood, occasional restaurant visits), to $1,300 (beautiful apartment, frequent dining out and nightlife). For a family of three, costs start at $1,200 (small apartment, cooking at home), $1,400 (nice apartment, occasional restaurant visits), or $1,800 (beautiful apartment, regular dining out). These estimates cover rent, food, transportation, and activities like zoo visits or taxi rides, supporting a comfortable lifestyle.

12. Access to Everyday Goods
    Most everyday items, tools, and services available in Europe or the US are accessible in Paraguay. Luxury goods or new cars may be pricier, but daily expenses are low. For example, used cars, particularly Japanese models, can be imported from Chile via Auto Chile.

13. Gun Ownership Laws
    Paraguay permits residents to obtain firearm licenses. The minimum age is 22, and licenses must be renewed every three years, which may appeal to those from gun-friendly countries like Switzerland, Czech Republic, or the US.

14. Premium Quality Beef
    Paraguay is renowned for its world-class beef and authentic asado, a cherished barbecue tradition deeply embedded in the culture. At local markets, raw beef is not only exceptional in quality but also remarkably affordable compared to Europe or the United States. For example, a tomahawk steak costs just $7/kg, and ribeye is priced at $10/kg. Most beef is grass-fed, thanks to Paraguay’s abundant pastures and mild winters, which support year-round grazing.

How to Obtain Paraguay Residency?

1. Physically enter Paraguay to begin the process.

2. Apply for temporary residency, which lasts 2 years. After 21 months, apply for permanent residency, without needing to reside in the country during that period. As mentioned before—you just have to visit the country once every three years for at least one day.

   • Note: After getting permanent residency, you can try to get Paraguayan citizenship by naturalization. However, you will be required to stay in the country for at least 9 months a year for the next three years, learn the basics of Spanish, pass a history test, and ideally have strong ties and economic activity in the country. It is doable, but the requirements are naturally much higher than for getting a residency.

3. The process involves appointments with agencies like the police and immigration office. Upon document approval, a “residencia precaria” is issued for 90 days.

4. With temporary residency card, individuals receive a cédula (ID card), enabling them to open bank accounts, sign contracts, rent property, or engage in employment.

5. Managing the process independently can be time-consuming due to paperwork and appointments.

Rather than tackling the Paraguay residency process alone, which can feel overwhelming with many appointments, paperwork, and time invested, our company ensures a smooth, stress-free experience, handling everything in just one short visit. Check our service offerings and fill out our quote form today to start your residency process right away!