Plan B Paraguay

Tax-Free Business Setup

Client Portal

Plan B Paraguay

Tax-Free Business Setup

Client Portal

Tax-Free Business Setup for Digital Nomads

We build your borderless business stack: Paraguay physical and tax residency, U.S. LLC formation, plus advisory on offshore personal and corporate banking and corporate crypto exchange access.

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Calculate Your Investment Return

Income Tax Savings Calculator

Our Tax-Free Business Setup package costs around $6,600. See how quickly this investment pays for itself through tax savings.

Annual Income

Current Tax Rate

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Paraguay Tax

Annual Tax Savings

Investment Payback Period

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Paraguay uses territorial taxation - foreign income (income earned outside Paraguay) is not taxed or reported. Calculations are estimates for informational purposes only and do not include any other costs associated with the process.

Why Choose Us?

Proven Expertise

We are practitioners who have tested and refined this process ourselves, successfully applying it for hundreds of clients. We know the insider strategies to make it work seamlessly.

One-Trip Process

Only one visit to Paraguay is required. We handle everything else from the package without requiring your physical presence.

Exclusive Community

Join our private communities on Signal and Matrix and connect with a big physical community in Asunción of like-minded individuals. Your privacy is our priority.

Expert Legal Team

Our experienced legal team manages every aspect of your setup from start to finish.

Streamlined Process

We've perfected a low-bureaucracy approach with minimal requirements and maximum freedom.

Paraguay Residency: Tax Haven for Digital Nomads

The Perfect Foundation for Your Global Lifestyle

Paraguay offers territorial taxation, meaning income earned outside the country is not taxed or reported. There's no requirement to live in Paraguay to maintain tax residency, and its simple tax system, combined with no participation in the Common Reporting Standard (CRS), provides banking privacy. This mix of benefits makes Paraguay the perfect base for global citizens.

Territorial Taxation

Foreign income is neither taxed nor reported in Paraguay - perfect for digital nomads with international business.

No Stay Requirement

Maintain your tax residency without being required to live in Paraguay.

Simple Tax System

Straightforward tax framework with minimal bureaucracy and reporting requirements.

Banking Privacy

Paraguay doesn't participate in the Common Reporting Standard (CRS), providing enhanced financial privacy.

Thriving Expat Community

Join a friendly, growing expat community. Connect with like-minded individuals seeking a similar lifestyle.

Rising Digital Nomad Hub

A peaceful, productive environment perfect for focused work. Enjoy world-class beef, professional gyms, and over 3,000 hours of sunshine yearly - perfect for diving into the rooftop pool after a long workday.

Sailing boat on tropical water, representing location-independent tax-free business setup

What's Included

Services Provided in Your Tax-Free Business Setup Package

Our comprehensive package provides everything you need to create a tax-efficient business structure for digital nomads.

Complete Package - All Included

These core services are all included in your Tax-Free Business Setup package. Yearly services are covered for the entire first year at no additional cost.

Paraguay Residency

Paraguay residency with territorial taxation benefits. The entire process is optimized into a single short visit to Paraguay.

Tax Residency & Number

Official tax number in Paraguay. Foreign income is neither taxed nor reported.

USA Single-Member LLC

Low-bureaucracy business structure. As a pass-through entity, profits flow to you and are taxed based on your Paraguay tax residency.

LLC Banking Advisory

Comprehensive banking advisory services including which banks work best for your USA LLC, required documentation, application processes, and guidance to maximize your chances of successful account opening.

Virtual Office in USA

Bank-friendly US address for LLC registration and business correspondence, enhancing credibility with financial institutions.

Virtual Office in Paraguay

We receive and manage your mail, providing scanning, forwarding, or secure shredding services for bank cards and documents.

Lease Contract in Paraguay

Proof of address for institutions like banks and other services, while also strengthening your tax residency ties with Paraguay for enhanced credibility with financial institutions.

Registered Agent

Professional registered agent service for your USA LLC to maintain compliance with state requirements.

Important: First Year Coverage

All yearly subscription services are covered for the first year as part of your Tax-Free Business Setup package. After the first year, you might want to renew these services annually to maintain compliance and continuity.

Additional Services

Optional services you can add to enhance your setup and ensure maximum compliance.

Driver's License

Driver's license for cars, valid in many countries beyond Latin America.

Post-paid eSIM

Post-paid eSIM with 80 GB and free roaming in Americas and Europe. Activation is possible remotely after completing residency process.

IRS Filing Support

Professional assistance with IRS form preparation and filing to ensure full compliance with yearly US tax reporting.

Our Process

Simple Steps to Freedom

Initial Evaluation

A single consultation call with our team to assess your needs and explain the entire process.

Document Preparation

We guide you through preparing all necessary documents in just a few days.

Single Trip to Paraguay

Spend just 3 business days in Asunción to apply for residency and complete all required procedures.

Residency Processing

Your Paraguay residency application is processed by local authorities (~12 weeks).

Tax Number Application

We handle your tax registration and obtain your Paraguay tax number (~2 weeks).

Virtual Office and Lease Contract

Set up your virtual office and lease contract for business and residency needs.

USA LLC Formation

Formation of your USA single-member LLC with registered agent services (~3 days).

EIN Application

We handle your EIN (Employer Identification Number) application for your USA LLC (~4 weeks).

Setup Completion

The entire setup is typically completed within 4 months. All official documents are securely delivered via DHL to your specified address.

Professional Excellence

Unlicensed Fixer

Documents or advice may not be recognized by official bodies.

Criteria

Licensed Lawyer

Unlicensed Fixer

Operates legally under local and international law.

Not legally authorized to offer immigration advice.

Accountability

Bound by legal ethics, licensing boards, and professional liability.

No legal responsibility or obligation to deliver.

Privacy & Confidentiality

Legally required to protect your personal data and case details.

No legal duty to maintain confidentiality.

Knowledge of Law

Deep understanding of immigration, tax, and other related laws.

Limited or outdated knowledge, often based on hearsay.

Experience with Complex Cases

Can handle unusual or rejected cases and escalate legally if needed. Example of complex cases can be immigration service for individuals with visa requirements.

No legal authority or training to deal with complications or complex cases.

Success Rate & Track Record

Proven history of successful residency/visa approvals, verifiable by clients.

No transparent track record.

When Things Go Wrong

Can defend your interests, appeal rejections, and solve legal roadblocks.

Cannot help or intervene legally if issues arise.

Efficiency & Strategy

Knows the most efficient legal paths, including valid shortcuts and exceptions.

May use shortcuts that are risky, outdated, or could cause problems later.

Professional Network

Connected to official institutions, notaries, embassies, and government contacts.

May rely on informal contacts or bribes, which are unreliable and risky.

Transparency

Clear contracts, pricing, and scope of services.

Often vague about pricing, processes, and what's included.

Compliance with International Law

Can advise on global implications (tax, second residences, reporting obligations).

Typically limited to local or incomplete knowledge.

Recognized by Institutions

Can provide certified documents, affidavits, legal opinions accepted by embassies, consulates, and banks.

Documents or advice may not be recognized by official bodies.

Frequently Asked Questions

Everything You Need to Know

How much does the Tax-Free Business Setup cost?

The Tax-Free Business Setup is approximately $6,600, which includes Paraguay residency, tax registration and RUC number, virtual office in Paraguay, lease contract in Paraguay, USA LLC formation including state filings, registered agent services, EIN registration, virtual office in the US with lease agreement, compliance guidance where applicable, and banking advisory. The package includes a full one-year subscription covering the required maintenance services, so there are no additional costs for the entire first year. After the first year, ongoing costs depend on your situation: some services are mandatory, such as state fees, registered agent services, and IRS filings, while others may be optional or no longer necessary. We review each case one-on-one and help you decide what makes sense to maintain and what can be discontinued. Converting from temporary to permanent Paraguay residency after two years involves additional costs.

How long does the entire process take?

The complete Tax-Free Business Setup is delivered within approximately 4 months from the moment of application in Paraguay. We need a minimum of two weeks to prepare the Paraguayan documents before your single trip to apply for residency and complete the required in-country procedures. After your residency status is obtained, we proceed with the US-side steps to set up a functional and private operating structure, including the LLC, compliance items, and banking advisory.

Do I need to visit Paraguay multiple times?

Usually people have to visit Paraguay at least twice to finish the residency process, but thanks to our streamlined process we can reduce the initial application to one short visit. While you hold temporary residency, you should enter Paraguay once per year to keep the status in good standing, and in the second year you need to apply for permanent residency. Once you obtain permanent residency, you must visit Paraguay at least once every 3 years (this can be just one day) to maintain your resident status. From a global perspective, Paraguay has some of the most benevolent residency maintenance rules, requiring very minimal effort to maintain your residency and all the benefits that come with it. In practice, many people end up spending much more time in Paraguay than required - numerous digital nomads make Paraguay one of their primary bases due to the low cost of living, excellent food, and growing expat community.

What can I expect from your service?

We provide comprehensive guidance for obtaining all necessary documents and offer complete legal support in Paraguay - no Spanish required. Our lawyers handle everything locally, and a private driver accompanies you throughout the process. Beyond residency, we also handle your tax registration, USA LLC formation, and provide banking advisory services. The entire Paraguay portion is typically completed in 3-4 hours with one visit to Asunción, and we ensure secure delivery of all documents via DHL.

Who is this setup for?

The Tax-Free Business Setup is perfect for digital nomads, online entrepreneurs, freelancers, and anyone earning income online who wants to optimize their tax situation legally. It's ideal for people who value location independence, want to reduce their tax burden through territorial taxation, and prefer operating through a USA LLC structure while maintaining flexibility in where they live and work.

How does Paraguay's territorial taxation work?

Paraguay uses territorial taxation, meaning only income earned within Paraguay is subject to taxation. Foreign income is neither taxed nor reported, making it ideal for digital nomads earning income abroad. You can maintain tax residency without living in Paraguay.

What are the requirements for maintaining tax residency in Paraguay?

To maintain tax residency in Paraguay, you need to fulfill the requirements for your temporary or permanent residency and file monthly tax reports. The report is a simple, repetitive process that usually takes a maximum of 2 minutes per month and can be delegated if needed. There is no minimum stay requirement beyond entering Paraguay once per year as a temporary resident and once every 3 years as a permanent resident. What is more important is that you do not become a tax resident of another country. Paraguay's territorial taxation system means that even as a tax resident, foreign income is not taxed or reported, making it ideal for digital nomads.

What banking options are included?

Due to KYC and AML regulations, we cannot directly open bank accounts for you in reputable jurisdictions. However, we provide comprehensive banking advisory services, including which banks to approach, required documentation, application processes, and guidance on maintaining compliance with international banking requirements. We help you understand the best banking options for your USA LLC structure and for personal banking, including options in the USA, Paraguay, Panama, and other offshore destinations.

Is Paraguay safe?

Yes, Paraguay is a safe Latin American country. In the capital, Asunción, proper neighborhoods feel safer than many cities in Europe or the US. The expat community is thriving and welcoming, making it an excellent choice for international residents.

What is the difference between citizenship, residency, and tax residency?

Citizenship: Gives you the right to hold a passport and enjoy full legal rights in a country, including voting.
Residency: Allows you to legally live in a country and may provide access to many local benefits, but it does not grant full citizenship rights such as voting in presidential elections. Our Tax-Free Business Setup includes Paraguay residency.
Tax Residency: Determines where you are obligated to pay taxes, usually based on where you spend time or have significant financial ties. Paraguay is unusual because its tax residency can be maintained without living in the country full-time, as long as you meet the residency maintenance requirements and avoid becoming tax resident elsewhere. Paraguay tax residency also comes with territorial taxation benefits - foreign income is not taxed.

Can I live in another country while being tax resident of Paraguay?

Yes, but you must ensure that you are not considered a tax resident anywhere else. This typically means you cannot spend more than 183 days in any other country (except Paraguay). In other words, you should not be in one country more than 6 months a year. Some countries have even stricter requirements, so you should be aware of and check the specific tax residency rules of countries you plan to visit - it can often be real estate ownership, etc.

Is a U.S. citizen eligible for this setup?

Yes, but the strategy is different. The United States applies citizen-based taxation, meaning US citizens are taxed on worldwide income regardless of where they live, so Paraguay residency alone is not a zero-tax solution for US passport holders. For US citizens, we can advise on Paraguay residency as a strong Plan B and discuss other compliant options, including Puerto Rico Act 60 and bona fide residency planning where appropriate. US citizens should always work with qualified US tax professionals before implementing any international tax structure.

Are there ongoing requirements or fees?

Your USA LLC requires mandatory state fees and registered agent services, as required by law, along with optional virtual office and lease contract renewals. The Tax-Free Business Setup package includes a full one-year subscription that covers required maintenance costs, with no additional fees for the entire first year. After the first year, we offer a yearly subscription package that can include mandatory costs, optional services such as a virtual office in the US, a virtual office and lease contract in Paraguay, ongoing compliance support, IRS yearly reporting for the LLC, and FinCEN FBAR guidance or filing support where applicable.

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Hacking Lives

Hacking Lives helps individuals and families build a practical Plan B and tax-efficient international setups with Paraguay residency, US LLC, international banking, and crypto.

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Plan B Paraguay

Tax-Free Business Setup

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