Paraguay as a safe destination for Russian people
This is especially true for Russian citizens affected by recent developments in the country, who may have been anxious to seek out residency rights in a safe, neutral country even before President Vladimir Putin announced a partial mobilisation on September 21st. Since then, hundreds of thousands of Russians – including men facing the draft, family members and other travelers – are estimated to have left the country, while the number of one-way flights from Russia rose 27% from Sept. 21 to Sept. 27 compared with the week prior.
Latin America has become an increasingly attractive option for Russian citizens seeking dual residency, offering an alternative to busy, expensive cities in Europe and North America. And more and more people are discovering how beneficial and easy it is to acquire permanent residency in the small but up-and-coming nation of Paraguay, which has proven to be a safe haven for foreigners in recent times. In this article we will look at the benefits which Russian citizens can expect from acquiring dual residency in this unassuming, landlocked country in the centre of the South American landmass.
Why Paraguay?
Paraguay is a beautiful, peaceful country with a diverse environment and acres of rolling green countryside. Its residents enjoy high levels of personal freedom, low taxes, and minimal government regulation, and can live a comfortable and affordable life compared to the West and even other Latin American countries. No wonder Russians and other European citizens have been heading there for years now, to seek out new business opportunities, adventure or just some peace and quiet in their old age.
The country also has some of the best – and most accessible – dual residency laws and benefits in the world. Unlike almost any other country in the world, foreigners with Paraguayan residency can choose to live in the country or elsewhere, all while retaining dual residency rights. Paraguay’s moderate dual residency laws hold a particular appeal for a new wave of digital nomads, as the working world becomes more mobile and remote in the wake of the Covid-19 pandemic.
Paraguay is Open to Russians
Russians can be sure of a warm welcome in Paraguay, which has enjoyed amicable relationships with their home country for decades. Paraguay and the Russian Federation established diplomatic relations on 14th May 1992, and since then Russia has maintained an embassy in Asunción, while Paraguay runs a mission in Moscow. Both nations have sought to strengthen relations in recent years with the signing of an MOU for research related to nuclear energy, and a defence agreement centred on greater military cooperation. During the COVID-19 pandemic, Russia further improved its relationship with Paraguay by sending supplies of the Sputnik vaccine to the South American nation.
Trade between the two countries remains brisk despite a number of obstacles. Paraguay is one of the world’s largest exporters of beef, and Russia is the second-largest importer from the South American nation. When the United States, Canada, the United Kingdom and European Union suspended Russia’s access to the SWIFT system in the early days of the war with Ukraine, Paraguayan exporters responded to the crisis by negotiating with Russian clients for shipments of poultry meat, bovine offal, fat, and whole milk powder, ensuring the continuation of business as usual between Asunción and Moscow.
On an individual level, while no-one is excluded in Paraguay, residence is often much harder to obtain for citizens of certain Asian, Arabic, and African countries, while Americans, Latin Americans and Europeans are especially welcome. Russians are considered Europeans in Paraguay, and there is a large expat Russian community in the country – particularly in the capital city of Asunción. And Russian citizens who can demonstrate that their investment capital comes from a legal source will be more than welcome as far as Paraguay’s immigration authorities are concerned – not surprisingly, Paraguay seeks foreign direct investments just like any other country.
A Fast Track to Dual Residency
To become eligible for Paraguayan residence, Russian citizens will be expected to make a bank deposit in the country and devote a week of their time to the process, after which the application should be processed in a matter of weeks – a potentially important factor considering the volatile situation back home, and one which sets Paraguay apart from other countries in Europe and the Americas.
Applicants can expect to receive formal approval from Paraguay’s immigration authorities – along with a Paraguayan Permanent Residency card – within five to six months, although they can begin living life as usual even as the application is pending. Paraguay is one of the few countries where Permanent Residence or PR status is granted from day one, and there’s no need to go through a series of temporary residence visa renewals first. Once Permanent Residence is approved, Russian citizens will receive a local ID card known as a ‘cédula’, which can be used to cross borders within the Mercosur Common Market, opening up access to neighbouring countries such as Brazil and Argentina.
Establishing dual residency in Paraguay is an opportunity to engage in business and seek out new opportunities in one of the most bureaucracy-free economies in Latin America. The country’s government puts up very few obstacles to free enterprise, and provides full support for local business initiatives, from all residents. Agriculture is one of the pillars of Paraguayan economy, and the agribusiness sector in particular is the beneficiary of many governmental incentives, as are the mining and energy industries.
Perks of Paraguayan residency
Residents of Paraguay, including dual residents, benefit from an extremely attractive tax regime, in which taxes are uniformly lower than in any other Latin American state. Income from other countries – including Russia – is not taxed in Paraguay at all, while all local income is taxed at a flat rate of 10%. Legal foreign residents in the country can also avoid many formalities when purchasing real estate domestically, and when purchasing Paraguayan securities.
Acquiring a residence permit in the country paves the way to acquiring a Paraguayan passport after a few short years. This, in turn, will open many doors including visa-free travel destinations, access to international banking services, and a large number of investment opportunities in Mercosur and beyond. Russians who obtain foreign citizenship in another country do not have to give up their citizenship back home, although they are obliged to notify the Russian General Directorate of Migratory Affairs.
As we have seen, dual residency in Paraguay is an attractive proposition at the best of times, and to anyone considering retiring or working remotely in a new, exciting and welcoming country. And to Russian citizens looking for a safe haven due to extreme circumstances back home, Paraguay could be the answer to their prayers. However, while the application process is simple enough, it always pays to enlist the help of dedicated professionals to make the process as easy and stress-free as possible. Get in touch with our team today to find out how we can help with Paraguayan dual residency.