Paraguay Residency 101

Why dual residency?

Dual residents can benefit from the advantages of not one but two different countries – their culture, history, languages, traditions, educational facilities and contrasting ways of life. As a result, dual residency and citizenship are increasingly sought after these days, and are considered to be a safe haven investment, for relatively little expense or effort.

And if you’re concerned with safety and flexibility in a constantly-changing world, dual residency as a Plan B can also grant you and your loved ones safe passage during times of economic or societal uncertainty, while providing access to improved healthcare and education, increasing potential business opportunities, and bestowing greater freedom of movement. It can also be invaluable for maintaining your financial stability, by protecting your assets and inheritance, assisting you in low tax planning, safeguarding against political instability, and counteracting currency volatility.

Why Paraguay?

While it does not attract the same level of attention as its more popular neighbours in South America – including Brazil and Argentina – Paraguay is a beautiful country, full of welcoming people and rolling green countryside, that offers residents relatively high levels of personal freedom, low taxes, and minimal regulation. It’s a place where you can live your life as you please, in a great deal of comfort, and with a very low cost of living compared to the West and even other Latin American countries – from affordable food and drink to convenient transport options and cheap rental opportunities in the capital of Asunción and beyond.

To those in the know, it’s no surprise that foreigners have been heading to Paraguay for years now, to seek out new business opportunities, see other parts of the world or retire in peace and quiet.

How do I apply for dual residency status in Paraguay?

Applying for residency in Paraguay is considerably easier than elsewhere – as is maintaining this status, since the country has some of the most relaxed residency laws of any country in the world. The official immigration process to obtain the Paraguay Permanent Residence Permit takes less than three months, and the status can be maintained without the requirement of one’s physical presence in Paraguay for all or part of the process.

The process of obtaining residency can be initiated by making a bank deposit of $5,000 USD, after which no minimum income requirement need be met. The other option is to purchase local real estate. After three years as a permanent resident, you can apply for naturalization and full Paraguayan citizenship.

Unlike most other countries, where permanent residency comes up for renewal on a regular basis, Paraguayan permanent residents are legally allowed to live and work there – or in their home country, should they prefer – for life, and will only lose this status in extreme cases of wrongdoing. This means unfettered access to the country’s excellent education and healthcare systems, as well as its rich cultural heritage, for life. The country is also well-known for granting a great deal of personal freedom to its residents.

Will the latest changes to legislation in Paraguay affect my application?

In October 2022, the Paraguayan government issued a newly amended immigration law which updated the process required of foreigners hoping to become Paraguayan residents. While the updated legislation does not practically affect the rights of foreigners applying for residency in the country, it does mean that four processes are now necessary to become a permanent resident – confirmation of temporary residency and issuing of an ID card, followed by confirmation of permanent residency and issuing of new ID card – rather than just the latter two processes, as was previously the case.

Practically nothing will change in terms of the application process with Paraguayan Immigration. The process of obtaining temporary or permanent residency permit remains virtually the same, notwithstanding the difference in status which applicants will receive upon completion. The official fee for the temporary residence permit remains the same as the fee for the permanent residence permit, but both fees have been raised to 2,452,225 Guaranís, equivalent to approx. 340 USD.

The updated law does not affect permanent residents or applicants who submitted their documentation for permanent residence status before the changes came into effect.

Does Paraguay offer Golden Visas?

Paraguay doesn’t usually appear on lists of countries that offer Golden Visas – i.e. the granting of residency or citizenship status to individuals on the condition of their investing a certain amount of capital in the country. Instead, it is typically included on the list of countries providing so-called Independent Means Visas, regardless of income.

However, Paraguay does offer a fast-track program for foreign investors under the national Unified System of Opening and Closing Companies (SUACE), which is similar in scope to the traditional Golden Visa. The program deals with company formation as well as residency, and can reduce the permanent residency application process to as little as 20 days, with a qualifying investment for individuals of at least $10,000 USD in a Paraguayan bank account.

This Residence by Investment Program is probably the most affordable immigration solution of its kind in South America. In terms of company investment, the contributed capital must be at least $70,000 USD, with applicants given a maximum of ten years to spend this amount on their business or investment project.
Once their application is approved, foreigners will receive a Paraguay investment visa and can enter the country, at which point the national company should be formed and the application for a permanent residence permit submitted. In addition to standard requirements, applicants for the Residence by Investment program need to submit a certificate issued by the Vice Ministry of Industry and Commerce of Paraguay, approving their qualification to SUACE.

What are the current growth areas in Paraguay?

Due to the frantic pace and uncertainty of the global geopolitical situation, investors are increasingly looking further afield for attractive and geographically convenient opportunities. Paraguay fits the bill, due to its relative distance from the fallout of geopolitical conflicts, abundance of natural resources, young and competitive workforce, and ease of doing business, among other desirable attributes.

The country is fast gaining a reputation as one of the best places to invest in the region. At the 2022 Invest In Paraguay forum in Asunción, Inter-American Development Bank (IDB) President Mauricio Claver-Carone remarked that “if I were a foreign company, one of my first destinations would be Paraguay, due to the current investment environment that is ideal for doing business”.

The IDB President also noted that “Paraguay stands out for its economic stability and favorable business environment, including abundant renewable energy, a talented workforce, proximity to the main markets of South America, and attractive investment incentive laws”, and highlighted the country’s status as a regional leader in an increasingly crucial sector to economies all over the world, renewable energy. In addition to Paraguay’s attractive dual residency laws and taxation regime, these circumstances should place the country squarely on the radar of international investors.

The main assets of Paraguay’s emerging, agrarian economy are soybean production and hydroelectric generation. The latter makes up nearly 100% of Paraguay’s electricity, and 90% of the energy generated is exported abroad, mostly to Argentina and Brazil. The World Bank classifies Paraguay as an upper middle income country with financing needs that are set to remain high in the short to middle term, but with a low risk premium compared with its more well-known Latin American neighbours.

Finally, while blockchain adoption is not particularly high in Paraguay, especially compared to neighbouring Latin American countries, the country’s unique energy prices and output makes it an ideal location for bitcoin miners – especially since regulation around this up-and-coming industry is not yet properly established, and looks set to grow in the near future thanks to the support of local politicians.