PARAGUAY - Economic activity for Permanent residency
Dear Readers,
We would like to inform you about a significant change regarding the process of obtaining permanent residence in Paraguay. The Dirección Nacional de Migraciones has issued Regulation No. 407, which came into effect on May 28, 2026 and is being enforced.
What is changing
For applicants transitioning from temporary residence to permanent residence after two years of temporary residence, a new additional condition applies: it is now necessary to prove economic activity in Paraguay (i.e., to fall into one of the 12 immigration categories of economic activity and substantiate it with the relevant documents).
The regulation also clarifies the categories into which every applicant must fit. In practice, this means clearer rules, but unfortunately also significantly more bureaucracy and documentation requirements. Currently, there are 12 categories in practice; below we list the most commonly usable options for individuals building a “Plan B” in Paraguay. Other categories can also be used, depending on the assessment of your suitability.
Four dominant ways to prove economic activity
1) Local income from invoicing (RUC, timbrado)
Applicants can prove economic activity by operating in Paraguay as a person with tax registration (RUC), obtaining a timbrado, and issuing invoices in a sustainable volume corresponding to their “life situation.” A standard 10% VAT tax is paid on these amounts, and it is necessary to provide tax returns and proof of tax payment for at least 3 months (for greater certainty, we recommend a longer history, e.g. 4–5 months). We can help to organize this for our clients.
2) Income from renting property in Paraguay
If the applicant owns real estate in Paraguay (RUN) and rents it out, rental income together with the related tax returns and payments can be used as proof of economic activity (again, for at least 3 months). This is usually a relatively straightforward path. However, you must own the real estate for at least 2 years during the temporary residence period.
3) Remote worker / Digital nomad – foreign income (contract with a foreign entity)
Individuals with foreign income (remote work/digital nomad status) can prove economic activity through an employment confirmation with a foreign employer. The confirmation should clearly state the income amount, company identification, method and ways of settling the payment, and duration. These documents must be apostilled and translated into Spanish. Since this is income generated outside Paraguay, local taxation of this income is not required in this category; the key is proper submission of verified documentation. We have a certification template ready for our clients to be filled in and signed from the employer side. We help with it.
4) Dependent persons (family) – economic activity is proven by the main applicant
In the case of families, the main applicant can prove economic activity (e.g. through invoicing and tax history). Other family members (legal spouse and children) can be listed as dependents and must demonstrate that they are financially supported by the main applicant (regular bank transfers - proof of regular support is required for adult children as students, typically bank statements with apostille and translation). For adult dependents (apart from spouse), a longer history of regular monthly payments can be expected.
For children, the requirements differ depending on whether they are minors or adults. In addition to proof of schooling and payment of school tuition during the two years of temporary residence, proof of the source of funds (e.g. from parents, bank transfers, and the supporting parent’s identification documents) may be required.
Important clarification
The regulation introduces a more structured system that will be refined in the first few months through actual practice and internal procedures of the authorities. Some detailed requirements (e.g. specific minimum amounts or exact length of history) may evolve and will stabilize gradually. It is wise to have an income higher than a minimum wage. Our "ball park number" is at least around $1000 per month as a minimum. Which allows normal life in Paraguay and is justifiable.
Our next steps
We have internal methodologies and processes ready for our clients so that fulfilling the new condition is simple with minimal administrative burden and without unnecessary complications.
At the same time, we will continuously monitor the development of application practice and will transparently keep you informed of any clarifications and recommended procedures.
If you are planning to transition from temporary to permanent residence in the next 6–12 months, we strongly recommend starting to plan your chosen category of economic activity in advance, at least 6 months prior. This will allow sufficient time to build the necessary documentation history and choose the right approach.
Documents
- Download the Permanent residence checklist for the DNM407 which category you might fit. We believe the most common categories will be the following. It is best to follow this process from top to bottom:
You can prove foreign income through a confirmation document we will provide you. In this case, no tax is paid in Paraguay.
If point 1 does not apply to you, you will prove local income from Paraguay. We can assist you with this, or you can handle it yourself by issuing invoices for at least 3 months and paying the local 10% tax. See below document.
An alternative for those who have owned real estate in Paraguay for more than 2 years at the time of applying for permanent residency. In this case, it is sufficient to prove property ownership. The immigration office may request confirmation of rental income from the property.
Dependent persons mainly apply to spouses and children in families. The main applicant selects a category as per the above (1–3). The spouse can be a dependent person without the need to prove income, only the marriage certificate is required (as always, with apostille). For children, proof of study for the past 2 years (and ideally tuition payments) and information on how they are financially supported will be required (especially for adult students).
There are 8 additional categories you can choose from according to the official document. However, the ones listed above are the simplest for your situation.
How to issue local invoices in Paraguay by yourself? Here is the guide on how to do it. It is not the best option but you can do it by yourself if you wish.