Living in Paraguay

In Paraguay, foreign income is in principle not taxed, local tax caps at 10% and our grid rates Asunción as low cost. Expect very hot summers, hard banking (money 4/10) and a tax residence you have to prove with documents.

Cost of living and cities

Asunción concentrates government offices, private hospitals, international schools and the main airport; districts such as Villa Morra or Carmelitas hold most of the expat supply. Ciudad del Este, on the border with Brazil and Argentina, lives from cross-border trade. Our grid rates both cities as low cost.

The currency is the guaraní. Spanish and Guaraní are official languages, and little English is spoken outside business circles. Summers are very hot and humid, which makes air conditioning a budget line of its own.

People mostly get around by car, as public transport is limited. Our grid scores infrastructure 4.5/10 and space 10/10: plenty of room, low density, and services that cluster quickly around the capital.

Personal tax and residence

Paraguay applies territoriality: foreign-source income is in principle not taxed locally. Paraguayan-source income follows a capped scale our grid summarises as 0–10%.

Immigration residence and tax residence are two separate statuses. The latter goes through RUC registration with the DNIT and a tax residence certificate (Resolución General 65/2020). That framework sets no statutory day count, and the 120-day figure found online is disputed. Prepare a lease, bills and proof of real presence.

For a European, this certificate is not enough to leave the home tax residence. As long as home, family or economic interests stay in Europe, the home administration can still treat you as resident. Have the exit modelled (exit tax, CFC, treaties) before leaving.

Family, school and healthcare

Asunción has private bilingual and international schools; elsewhere, supply shrinks fast. Homeschool status is not yet classified in our dataset: treat it as unknown and get written local advice.

Private healthcare in Asunción covers most routine needs; the public sector is limited. Private insurance is the norm for foreign families, and summer heat calls for real care with young children.

Visa, pace and daily life

Since Law 6984/2022, temporary residence (up to two years) is a mandatory step before permanent residence, except for the SUACE investor route. Conversion to permanent can be requested from month 21.

Presence requirements are light: a temporary resident must enter at least once every 12 months, a permanent resident at least once every three years. That flexibility concerns the residence permit; your home country applies its own tax residence tests.

Day to day, the pace is slow and paperwork takes patience: apostilles, translations, appointments. The residence guide details the steps and documents.

See detailed residence guide

Paraguay suits people living on foreign income with a tight budget who can handle the heat. It disappoints those who think a residence card is enough to change tax residence. The Business page and the residence guide cover the company and the paperwork.

Common mistakes: confusing a residence card with tax residence; relying on the 120-day figure; underestimating account-opening delays; ignoring the home country’s exit tax.

Living here

Main cities

Liberty scores

Overall score (equal weights) : 6.3/10

Ranking Liberty-mode scores 0–10. Higher is more favourable for that criterion.

Personal taxation

Indicative Ranking labels: verify local law.

Homeschooling

Not coded

Status not yet classified in the dataset (missing indicative data).

Indicative status (self axis): verify local law.

Real estate

Compare in Liberty mode Living-here page

FAQ

Is a Paraguayan residence card enough for tax residence?

No. Tax residence goes through the RUC and a DNIT certificate, with proof of life on the ground. Your home country also applies its own tests.

Do you need to spend 120 days a year in Paraguay?

That figure circulates, but the tax certificate framework sets no day count. On the immigration side, a temporary resident must enter at least once every 12 months.

Asunción or Ciudad del Este to live?

Asunción for schools, healthcare and government offices; Ciudad del Este for border trade. Both are low cost in our grid.

How long until permanent residence?

Temporary residence lasts up to two years; conversion can be requested from month 21, except on the SUACE investor route.

Read next

• Business company page
• Get residence
• Live free + real company: cross checklist
• Homeschooling: reading territorial status
• All countries

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