Be tax-free through Permanent Residence in Paraguay
Did you know that it is possible to obtain a permanent residence in Paraguay without necessarily having to live in that country?
Not only do you have the advantage that it is not necessary to live in Paraguay, but this country also applies a territorial tax system, which means that only income obtained within the national territory must be taxed. All your income and benefits obtained abroad are legally exempt from tax in Paraguay.
If you operate internationally, you can pay dividends from your foreign company totally tax-free in Paraguay.
Even if local income is earned, taxation is not particularly problematic for a 10% tax on almost all income categories. This tax applies only from an annual income of 120 times the minimum wage (about $ 39,000). From 72 minimum wages (dropping 12 times a year, reaching 36 minimum wages in 2019) only 8% applies.
However, if you are an entrepreneur or investor and you are not tied to any place, you can live in Paraguay completely tax-free.
Also, it is not required to demonstrate economic interests, that is, it is not required to incorporate a company within the country to opt for residency. This is a great benefit to cut costs and bureaucracy. If you already have an offshore company, you do not have to create another unnecessarily to become a resident in Paraguay.
In addition to the above, this country has a low profile internationally, which means a great advantage. On the opposite side, we could mention Panama, which has a bad reputation worldwide for its famous stories of people using their residence and their companies for tax evasion.
In principle, the only condition to immigrate is to demonstrate that we have 24,500,000 guaraníes in a local account. This amount will be locked until residency is granted after 3-4 months, after which it can be used freely.
The following documents must be sent to the Paraguayan embassy in the country of origin for legalization:
• Original and legalized birth certificate
• Original and legalized marriage / divorce certificate (if applicable)
• Police certificate of good conduct legalized
All other documents, such as passport certification, health card, photographs, Interpol certificate and others, can be obtained locally in Paraguay.
Once all the documents are legalized, you can make the trip to Paraguay and continue with the process there.
The application process takes about 3-4 months. Then, on a second visit to Paraguay, the Paraguayan document can be collected, or for a minimal additional expense, authorize a lawyer to receive it and send it to us.
Once the Permanent Residence is obtained, no renewal will be required. Permanent residents simply need to visit Paraguay at least once every three years to keep their permits current.
Being one of the most agile residences to obtain, at the same time, it grants innumerable benefits for your professional growth, allowing you to incorporate companies, obtain a driver's license, make large-scale investments, buy the amount of property you want at a low cost and free yourself from tedious government taxes.