Your Guide to Permanent Residency in Paraguay
Learn about the merits, requirements, cost, time, taxation, country, and more.
As featured in
Welcome
Finestra & Associates is a Paraguayan immigration law firm based in Asuncion! Since its inception in 2010, it has provided tailor-made solutions to individuals and companies that wish to obtain residency in Paraguay. The firm is proud of its track record and determination to succeed in each and every case. As such, it has assisted a significant number of people in obtaining permanent residency in Paraguay in a professional and cost-efficient manner.
At Finestra & Associates, we carefully evaluate the requirements of every client and help them navigate the somewhat bureaucratic labyrinth of the immigration process. As a member of the Paraguay Bar Association, we conduct our business with integrity, efficiency, and discipline. We speak Spanish, Guarani, and English.
- No one can guarantee the outcome of the residency process. It is up to the authorities to grant or deny it with or without reason. We felt compelled to create this presentation as there is an abundance of conflicting information presented on the Internet. Last update: September 1st, 2022.
Discovering Paraguay
Flying under the radar till recently, Paraguay is witnessing growing attention and appreciation from foreign individuals and companies alike.
Paraguay offers a surprisingly wide range of attractive features: a low-tax environment, a growing economy, financial freedom, pleasant temperatures for most of the year, breathtaking landscapes, moderate cost of living, affordable real estate, security, stability, culture, decent education and healthcare standards, a young workforce, friendly people, slow-paced lifestyle, strong agricultural presence and Spanish as a spoken language.
Argentina, Brazil, and Uruguay, Paraguay form the economic bloc known as Mercosur. Much like in the European Union (EU), Mercosur citizens may reside and work in the country of their choice within the bloc.
Paraguay operates one of the world’s largest hydroelectric power stations and provides clean energy domestically and to Brazil. Equally impressive is the fact that Paraguay is sitting on one of the biggest freshwater reservoirs in the world!
Paraguay is Poised to Benefit From Future Global Demand for Agricultural Goods, Drinking Water and Energy.
Permanent Paraguay Residency
Merits of the program
- The process is straightforward and can be completed within 90 days in most cases.
- All nations are eligible.
- The applicant must travel to Paraguay two (2) times.
- The governmental fees are comparatively low.
- Right to live and work in Paraguay indefinitely.
- Visa-free travel within Mercosur (Argentina, Brazil, Uruguay).
- It is not necessary to live in Paraguay to maintain residency. A visit once every three (3) years is enough.
- No military service.
- Repatriation of funds.
- Affordable cost of living.
- Spanish language.
- You can apply for a passport after 3 years of living in Paraguay.
Required Documents & Funds
Below is a list of the main documents that an applicant needs to prepare. Additional document(s) might be necessary, depending on your circumstances.
Documents
- Passport with a valid entrance stamp in the country.
- A Visa whenever necessary
- Birth certificate - In case of a name change, additional documents are necessary.
- Criminal Record - For any countries you have lived in over the last 5 years. Not required for children under the age of 14.
- Family situation - Married, divorced, widowed, traveling with a child without the 2nd biological parent?
- Education certificates - For children under 18 years.
- Proof of solvency
- In Paraguay Power of Attorney - Notary act granting your immigration lawyer the right to represent you.
- In Paraguay Affidavit – Notary act that the applicant will comply with the constitution and laws of Paraguay.
- In Paraguay Medical certificate – Issued by a General Practitioner in Paraguay stating that the applicant is in good health.
- In Paraguay Certificate of life and residence permit - Issued by the local police station of the neighborhood where the applicant will reside.
- In Paraguay Interpol Certificate - Issued by the National Police in Paraguay.
- In Paraguay Deposit at the National Bank of Paraguay.
The Process in Simple Steps
A Preparation Stage - Documents
We advise you to hire a local immigration lawyer. Cutting corners to save a relatively small amount of money may hurt your goals or budget. Finestra & Associates is a Paraguay-based law firm focusing solely on immigration law. With 12+ years of specialization, hard work, and transparent fees we want to believe that you are in good hands.
Based on your specific situation you will need to gather several documents. We will tell you exactly which ones. All documents will need to be authenticated.
3. Reviewing the Documents
We will ask you to send us a scan of the documents you gathered prior to your trip to make sure everything is according to the rules and expectations.
4. Visa Requirement
We will check if you or any member of your family requires a visa even if your country allows visa-free travel or visa upon arrival for tourism purposes.
- We all too frequently have people visiting our offices in need of help. More often than not, the documents and/or the visa, do not conform to the rules, and the trip ends up being unproductive and costly. We advise every individual to hire local, legal help to help you through the process.
B 1st Trip:
The duration of this trip should be 5 business days. Theoretically, 3 business days are sufficient; practically, there are often delays due to every reason imaginable. On the positive side, there will be time to visit sightseeing spots and get to know Asuncion.
Some of the meetings:
- Meeting with your immigration lawyer (welcome, brief information about the country, the introduction of the residency program, the meetings explained one by one, questions and answers, administration).
- Introduction to your personal assistant who will accompany you to all meetings, prepare all necessary documents and communicate on your behalf with the immigration officers.
- Notary (Affidavit, power of attorney, etc.)
- Medical exam
- Visa verification at the Ministry of Foreign affairs for all Applicants that carry one.
- Due diligence by the National Police of Paraguay (Interpol)
- Local Police Station (Certificate of life and residence permit)
- Deposit funds at the National Bank of Paraguay or demonstrate your University Degree or Annuity scheme
- Application for the Permanent Residency permit
The residency – if granted – is usually obtained within 60 – 90 days from the date of application. It may take a few months longer. You must re-visit Paraguay for a 2nd time within 6 months from getting the Permanent Residency permit. If not, the permit will become null & void.
- If you read on the Internet that one can skip the 2nd trip, then know that this is not permitted. You don’t want to risk ending up with questionable permits or illegal shortcuts. Shortcuts can become expensive.
C 2nd Trip:
- Receive the Residency Permit
- Obtain the Residency Certificate
- Apply for the Cedula (National Identity Card with 10 years validity, renewable indefinitely)
- Withdraw (if applicable) the funds from the National Bank of Paraguay
- Optional: Meet real estate agents, and accountants, incorporate a company, apply for a job, see the country and so much more.
Transparent Expenses & Legal Fees
Administrative Fee – We charge a fixed administrative fee of US$ 1,500 per applicant. The above amount consists of various fees (government, notary, national and local police, medical examination, courier, etc).
Translation costs are borne by the customer at the effective cost (3rd party service).
Legal Fees – Once we know your needs, we will offer you a flat fee so you can plan your trip with peace of mind. Until then, the range below gives you a good idea. Be aware that we are just as cost-conscious and careful as you are. With us, you can expect value for money and the experience of a specialized company. We differentiate among 3 categories of applicants. The groups differ in complexity and consequently amount of work.
Applicants from Mexico, South & Central America, and certain Spanish-speaking countries.
Legal fees
US$ 1,750 - 2,250
per applicant
Applicants from English speaking countries, European countries & certain Asian countries.
Legal fees
US$ 2,750 - 3,250
per applicant
Applicants from all other countries that need visa.
Legal fees
Price Upon Request
per applicant
- * We apply automatically a discount of 5% for families of 4 and more individuals.
- ** There is an extra charge of US $ 500 in case you apply for residency with a University Degree or Annuity payment.
Paraguay Citizenship
The Paraguay passport might be an attractive option. As of 2022, it allowed visa-free or visa-on-arrival travel to 145 countries, ranking it at number 32 of all passports. Paraguay’s constitution allows dual citizenship on a reciprocity basis.
Theoretically, obtaining it three (3) years after the permanent residency is possible. In reality, the process lasts around three (3) years and there is no assurance that it will be granted. At this moment there is no citizenship by investment program that could facilitate the process.
Notwithstanding the above, we have successfully guided clients through the process and continue to do so these days when personal freedom and movement deteriorate progressively. Planning is today more important than ever.
The rules stipulate that an applicant needs to
- reside three (3) consecutive years in Paraguay,
- have some business ties or real estate or profession,
- fiscal residence in Paraguay,
- pass a written Spanish language test and
- have a thorough knowledge of history, geography, etc.
Estimate – US$ 30,000 initial retainer fee per Applicant. Total fees may vary from US$ 70-100,000.
More Services
We assist our clients in many of their needs, such as:
- Banking in Paraguay,
- incorporating a company,
- providing a company address and related services,
- obtaining a driver’s license,
- getting a RUC number (El Registro Único del Contribuyente, Tax ID), and
- introducing reliable real estate agents, accountants, and much more.
Banking
Paraguay is definitely not the place for wealth management or sophisticated banking. Paraguayan bank services are relatively bureaucratic and the process of opening a bank account is cumbersome. The criteria may vary from bank to bank and from branch to branch and change frequently.
We will happily assist our clients in opening an account to feel at home and at ease in our lovely country.
Company
The incorporation of a company is a simple procedure and can be completed within days. We strive to achieve the best possible conditions so your company may benefit from existing or new incentives. We are of course very familiar with the Maquila regimen. Companies that operate under the Maquila model take advantage of numerous benefits. Maquila is usually a foreign-owned factory producing goods in Paraguay. The products are subsequently exported to the holding company bearing a unique tax of 1%.
Attractive Tax Environment
Finestra & Associates does not provide tax or accounting advice. This material has been prepared for informational purposes only and is not intended to substitute tax, or financial advice from a professional accountant.
Personal Income Tax – Any individual residing 120 or more days in Paraguay is deemed a tax resident. Personal Income Tax applies to all individuals, independent or not, whose annual income exceeds US$ 13,000 (adjusts yearly). The tax rate is progressive, ranging between 8% and 10%, and is based on goods and services, sale of real estate, bonds, shares, interest, and more, created within Paraguay.
Net Worth and Inheritance Tax – Paraguay has no net worth or inheritance tax.
Taxes on Corporate Income – 10% on income derived from any kind of economic activity within Paraguay.
Value Added Tax (VAT or IVA in Spanish) – Freelancers need to declare a 10% VAT tax. The VAT rate is included in all invoices for goods and services.
Real Estate Tax – A yearly tax of one (1) percent (%) of the property’s fiscal value. The percentage may vary according to the location.
A New Life Awaits
We are obviously biased as a Paraguay-based firm. But yes, we are proud of our country—humble beginnings but steady progress and accelerating economic growth. We look around and feel fortunate to live in this place. Life appears less stressful than elsewhere, and people are warm and welcoming. With a strong agricultural economy, a young population, clean energy, and a gigantic freshwater reservoir, Paraguay is ready to meet the future. It welcomes you to participate and become part of it. Asuncion is changing day by day with modern shopping centers, luxury condominium towers, prestigious office buildings, and golf and tennis clubs all over. Paraguay is no longer an insider tip, and people all over the world are talking about it. Bienvenido a Paraguay!
Contact
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Finestra & Associates
Edificio Trading Park
Avenida Aviadores del chaco 3207
Asuncion, Paraguay - +595 981 259 192
- [email protected]
- law595.com
