Is moving to Paraguay in the cards for you? Then here’s everything you need to know about relocating there so you’re prepared.
December 6, 2024
By: Bobby Casey, Managing Director GWP
According to Statista, Paraguay’s migration rate is projected to increase by 0.1% between 2024 and 2027, signaling a budding curiosity about this unique South American destination.
Whether you’re drawn by its affordable cost of living, natural beauty, or emerging opportunities, Paraguay is quietly stepping into the spotlight for expats seeking a fresh start.
If you’re considering a move to Paraguay but aren’t sure where to start, you’re in the right place. In this guide, we’ll explore the pros and cons of living in Paraguay and provide everything you need to know to make an informed decision. Let’s dive in and see if this hidden gem could be your next adventure!
Top Paraguay Cities to Consider
If you have the luxury of picking where to move to, then you might feel overwhelmed by your choices, especially since Paraguay is such a safe country. Below, we’ll break down the top choices to consider so you narrow down the possibilities.
Asunción
Asunción is the capital of Paraguay, and it’s the largest city as well. It’s a hub of business, culture, and government.
Like many other capitals, Asunción is good for expats. This is because it has modern amenities, international schools, and decent healthcare facilities.
In addition, there are vibrant social and cultural scenes, so you’ll never be bored. At the same time, the city has a laid-back feel, which allows you to relax.
Another plus is that the cost of living is affordable compared to other capitals in South America.
Ciudad del Este
Ciudad del Este is known for its bustling trade and proximity to Brazil and Argentina. So if you need or want to travel often to these countries, this is the city to live in.
Here, you’ll find a multicultural environment with influences from the neighboring countries. There are also opportunities for outdoor activities; Iguazú Falls is nearby. Those who like to shop will benefit from duty-free shopping too.
Encarnación
This city is located near the Argentina border and is known as Paraguay’s beach capital. You’ll feel like you’re in paradise when you see the beautiful riverfront beaches and indulge in the relaxed, resort-like lifestyle.
Plus, there’s a growing infrastructure catering to expats in Encarnación. There’s modern housing and leisure activities, and you’ll be close by to historical Jesuit ruins, a UNESCO World Heritage site.
San Lorenzo
San Lorenzo is a university city located just outside Asunción. It’s great for those who want to experience a youthful atmosphere. Of course, a huge advantage if you want to pursue a higher education is that there are many educational institutions here.
This city has affordable housing and a lower cost of living compared to Asunción, so if you wanted to live there but found it too expensive, San Lorenzo is a good alternative. It’s convenient for commuting to the capital while you enjoy suburban tranquility.
Moving to Paraguay From the US
If you’re moving from the US, then you’ll have to obtain a visa to do so legally. To get Paraguay residency, you can do so with either temporary or permanent residency.
Either way, you’ll need to have a valid US passport that’s valid for at least six months before your intended stay.
Temporary Residency
As a US citizen, you can enter Paraguay without a visa for up to 90 days, as you’re considered a tourist. If you want to stay longer, then you’ll have to get temporary residence.
To do this, you’ll need an apostilled birth certificate. In addition, you’ll have to obtain a clean police certificate that’s apostilled too.
Have you been or are you currently married? Then you’ll need to also provide the marriage certificate or the divorce statement, whichever applies.
Do note that temporary residency isn’t a popular option, as you can get permanent residency almost immediately. But if you do go this route, you can apply for permanent residency after living in Paraguay for two years.
Permanent Residency
To become a permanent resident, you’ll need the same documents as listed above. However, there are several options for permanent residency, which we’ll explore below. You should also know that after being a permanent resident for three years, you can apply for Paraguayan citizenship (there are additional requirements, such as learning the language and proving integration).
Retirement/Passive Income Residency
Considering that much of Paraguay has a low cost of living, it can be an excellent country to retire in, as you can stretch your dollar further.
To retire in Paraguay and get residency there, you only need to have a monthly income that’s equivalent to 100 times the minimum wage, which is around $1,300 per month. You also need to deposit at least $16,000 in your bank account.
What’s great about this residence permit is you don’t need to renew it at any point, and you’ll get permanent residency after two years. However, you must visit the country at least once every three years. If you don’t, you risk having your permanent residency revoked.
Investment Program (SUACE)
In Paraguay, there’s the Unified System of Opening and Closing of Companies (SUACE). This is a residency by investment program, and you get permanent residency immediately (within three months). This means that you’re eligible for citizenship in three years.
To get this type of residency, you must start a company in Paraguay and invest a minimum of $70,000 over 10 years. This amount can be reduced after you get citizenship.
Tax Information
Paraguay uses a territorial tax system, which means that in general, you’re only taxed on income you make within the country. If you spend over 183 days in Paraguay within a calendar year, then you’re considered a tax resident. In addition, because Paraguay doesn’t tax global income, this makes the nation very attractive to expats.
As far as income tax goes, Impuesto a la Renta Personal (IRP) only applies to those who earn more than 36 monthly minimum wage salaries (around $12,600). The rates range between 8% and 10%, depending on the level of income and type of activity.
As for corporations, profits are taxed at a flat rate of 10%.
Will You Be Moving to Paraguay?
Moving to Paraguay may not be something most people consider, but it’s definitely a hidden gem.
You’ll still be in the Americas if you’re relocating from the US, and there are many wonderful cities to choose from. Plus, if you want permanent residency and citizenship, they’re relatively easy to get in this country.
Contact us now to learn more about protecting your assets in any sort of move. We at Global Wealth Protection offer several resources to minimize your tax obligations.
