How Canadians can benefit from permanent residency in Paraguay
Canada’s population is no different in this respect, and the country is currently in the midst of an urban exodus which has only grown more pronounced during the second year of the COVID-19 pandemic. Tens of thousands of residents have chosen to leave the country’s major cities, especially Toronto and Montreal, for smaller cities or rural areas, and even for other countries, as working from home becomes the “new normal” for more and more people.
More than 64,000 people left Toronto between mid-2020 and mid-2021, up 14% from the previous 12-month period, according to population estimates from Statistics Canada. 6,600 of these people moved out of Ontario province altogether. Meanwhile Montreal, Canada’s second largest city, lost nearly 40,000 residents to other areas of Quebec, up 60% on the previous year – 3,600 of whom moved out of the province altogether, and on to new opportunities elsewhere.
What Canadians can expect from dual residency in Paraguay
As a small central South American country surrounded by more prestigious neighbours such as Argentina or Brazil, Paraguay is often overlooked by outsiders. But it is a genuinely beautiful country with a welcoming population, whose residents are generally free to live how they see fit, with very little government oversight in terms of taxes and regulation. The low cost of living compared to the West, coupled with a pleasant climate, ease of access and a wealth of business opportunities have turned the country into a prime destination for Canadians and other foreigners in recent years.
Obtaining permanent residency in Paraguay is extremely straightforward and easy compared to most other countries. Unlike other jurisdictions, you are guaranteed to retain your status as a permanent resident, so long as the authorities do not consider that you are doing anything illegal or harmful. Dual residents can choose to live and work in Paraguay – or elsewhere – for life without losing this status. And as dual residents, Canadian citizens will have access to the educational and healthcare systems in both their home country and in Paraguay, as well as access to the rich cultural heritage of both nations.
Should you decide to physically reside in Paraguay, the everyday cost of living is way below Canadian standards, and even those of the country’s South American neighbours. 1,200 to 1,800 Canadian dollars per month should be enough to live comfortably, especially outside of the capital city of Asunción, while essential supplies and transportation are reliable and inexpensive. Getting to and from the country is easy and relatively inexpensive, with the country’s two major airports offering regular flights to Canada and other destinations. And while Paraguay is still a developing country, crime is not a major issue in most parts of the country, and common sense measures should be enough to ensure your safety even in the country’s biggest cities. Should you require an immediate link back home, Canada maintains a diplomatic presence in the region, through its Consulate in Asunción, and its Embassy to Argentina and Paraguay in Buenos Aires.
Dual residency in Paraguay also allows Canadians full access to South America’s Mercosur region, including attractive business markets and tourist destinations such as nearby Brazil and Argentina, at no extra cost. Canada’s economic standing in South America has risen considerably since it joined the Organization of American States in 1990, and trade between the two regions is brisk, so unrestricted access to both markets is another benefit of dual residency which should not be overlooked.
Then there’s the weather! Unlike Canada’s continental climate of very cold winters, short cool summers and sparse precipitation, Paraguay has a subtropical climate, with regular dry and wet spells throughout the year. During warmer months, dual residents will be able to make the most of Paraguay’s rolling green countryside and impressive biodiversity, including natural features and wildlife, pristine beaches and waterfalls, and great lakes. Once again, dual residency in Paraguay allows Canadians to experience the best of both worlds, no strings attached.
The perks of dual Canadian-Paraguay citizenship
For Canadian citizens, obtaining dual residency and making the most of a second home is arguably easier to achieve in Paraguay than anywhere else in the world – and more beneficial. While most countries impose a minimum residency period to obtain the relevant permits and status, Paraguay allows dual residents to live elsewhere if they so wish, without revoking their dual residency.
The next logical step for Canadians who have become dual residents in Paraguay is to explore the possibility of dual citizenship, which becomes an option after as little as three years. As with dual residency, application for dual citizenship with Paraguay is inexpensive and straightforward, especially compared to other countries, and can be obtained with a $5,000 bank deposit and no minimum income. You can even apply for the permit from Canada if it’s more convenient for you.
While Canadian citizenship laws have been in flux recently, Canadians are currently free to live in another country for as long as they wish without renouncing their initial citizenship. Unlike residents of other countries, people born in Canada cannot lose their citizenship simply on the basis that they are not or have not been living in Canada. So dual residency or citizenship with Paraguay will not require you to burn any bridges with your home country, nor should you encounter any bureaucratic obstacles if you are originally Canadian.
As a citizen of two countries, you will be able to carry two passports, which makes life considerably easier in a number of circumstances. For instance, as a dual citizen of Canada and Paraguay, you will be able to travel between both countries seamlessly, avoiding tedious queuing and questioning from immigration authorities. You will be able to visit your friends and family back home at any time, without requesting permission to enter the country, and no one will ask you about the purpose of the visit, or any long-stay visa.
As a dual citizen, you will also be able to benefit from Paraguay’s favourable tax regime, which largely consists of a tokenistic personal income tax, introduced in 2012 at the rate of 10%. Paraguay’s tax authorities do not charge on income generated in other countries, including Canada, which makes the country even more attractive for individuals with pre-existing business concerns elsewhere.
Unlike the United States, which requires its citizens to pay taxes on their worldwide income even if they don’t live there, unless they renounce their American citizenship, Canada is open to dual citizens paying their taxes elsewhere, and does not enforce an ultimatum between taxation on foreign earnings or renunciation of Canadian citizenship. So for Canadians, and indeed anyone who is a non-US citizen, being tax-resident in Paraguay represents an excellent proposition.
As we have seen, dual residency is an attractive option for anyone looking to reinvent themselves as a global citizen in the wake of the Covid-19 pandemic, for a number of reasons. Now more than ever, people from Canada and all over the rest of the world are looking for new opportunities in both their personal professional lives, in broadening their horizons and seeing the world. And Paraguay is perhaps the most attractive country in the world in which to do so, by virtue of how easy it is to establish dual residency – and citizenship – with a minimum of fuss, and enjoy a unique way of life. But each case is different, and professional advice should be sought out to make sure the proper steps are followed throughout the entire process. Get in touch with the Strategicasa team today to find out how you can make dual residency in Paraguay work for you.