The benefits of getting a second residency in Paraguay for Chinese people
Dual residents can benefit from the advantages of not one country but two – and Paraguay is an increasingly attractive option for people all over the world, including China. While applying for a second residency in the country can be a challenge for Chinese citizens for a number of reasons, doing so is worth the effort, as successful applicants can make the most of this underappreciated nation’s culture, languages, traditions, education and social assistance infrastructure, while enjoying a new and exciting way of life in the heart of South America.
In this article we will look at some of the advantages of obtaining dual residency in Paraguay for Chinese citizens who are considering taking this step.
A land of opportunity
With its population of 7.3m people, most of whom are situated in the country’s two main metropolitan areas of Asunción and Ciudad del Este, Paraguay is not as internationally well-known as its neighbours, Brazil and Argentina. But the diminutive, landlocked nation offers a wide range of opportunities for foreigners and businesses looking to settle there.
The country is full of beautiful scenery, peaceful countryside and high levels of personal freedom. There are very few restrictions for settling in the country, and residents can benefit from a low, territorial-based tax system as well as minimal government regulation. As dual residents, Chinese nationals can expect to live a comfortable life free from interference, with a very low cost of living compared to China, the West and even other Latin American countries.
As a constantly growing economy with abundant and cheap fertile land, and access to several untapped markets, Paraguay is being increasingly viewed as a safe bet for foreigners looking to live and do business there. Agricultural and real estate sectors are currently attracting the greatest amount of foreign investment, while other interesting and untapped sectors include urban real estate, tourism, mining, industry, and tertiary services.
The dual residency process for Chinese people
Anyone – Chinese citizens included – can apply for Paraguay’s permanent residence permit once they are physically present in Paraguay. For Chinese visitors, this involves seeking out an entry visa for travel in the country, since visitor or tourist visas are hard to come by. Applying from western or South American countries can help with your application to the Ministry of Foreign Affairs, as does having a demonstrable history of travel (passport stamps from first-world countries, etc).
Applying for dual residency as a Chinese national is not without its challenges. There are no diplomatic relations between the two countries, and Paraguay is the only South American country to formally recognize the Republic of China, a.k.a. Taiwan, which is an obvious hindrance to the development of diplomatic and trade connections with mainland China. Paraguay does not currently have an Embassy in China, so the issuance of visas and stamps can be complicated and time-consuming. Finally, as China is not a member of the Hague Apostille Agreement, applicants have to think outside the box – or enlist professional assistance – to authenticate all the necessary documents.
Dual citizens’ rights
Unlike in other countries whose dual residency laws require regular renewals and paperwork, Chinese nationals who obtain permanent residency in Paraguay can legally live and work there – or elsewhere – for life, and won’t lose their status (except in rare, extreme circumstances involving illegal activities). “Permanent” residency in Paraguay is just that, granting lifelong access to the country’s rich culture, education and healthcare systems.
And access to Paraguay means access to the other markets of South America’s Mercosur region, including nearby Brazil and Argentina – both attractive tourist destinations and huge markets for fledgling businesses. Finally, dual residents from China will have the opportunity to apply for naturalization as a Paraguayan citizen after three years living in the country, which carries the additional benefits of being able to vote and run for office. And the country’s jus soli (“right of the soil”) policy means that any children born in Paraguay automatically obtain Paraguayan citizenship at birth.
Tax and cost of living in Paraguay
One of the most attractive aspects of dual residency in Paraguay for Chinese nationals is the country’s favourable tax system, in which only income and capital gains are taxed at a flat rate of 10%. No tax is levied on foreign-sourced income, from China or elsewhere – bearing mind that dual residents don’t necessarily need to live in Paraguay for any fixed period in order to uphold their status. Paraguay doesn’t apply inheritance tax, estate tax, net worth tax or capital acquisitions tax either.
Paraguay’s economy in general has been defying expectations in recent years despite the effects of the Covid-19 pandemic. It is regularly cited as one of the fastest growing in the world today, with minimal government regulation and full access to the growing Mercosur market – making it a fantastic location for dual residents looking to start a business or expand one which has already been established in China.
Paraguay also boasts an extremely low cost of living compared to its Latin American neighbours and beyond. Living expenses come in at around $1,000 – $1,500 in the capital city of Asuncion, and drop even lower in non-urban areas. Flying back and forth between China and Paraguay is not exactly easy given the lack of direct routes and physical distance between both locations, but the option is there for people looking to visit or head home on occasion. And while Paraguay and China do not have a direct trade agreement , this has not prevented the flow of Chinese imports from growing more and more in recent years.
Despite the huge geographical distance separating both countries, shipping from China to Paraguay is not a complex process from an administrative and logistical point of view, so potential dual residents can rest easy there, even though some patience is required.
Although dual residency is comparatively easy in Paraguay compared to the rest of the world, the specifics of each case can vary, particularly when diplomatic relations with China (or lack thereof) are concerned. Not to mention embracing an entire new culture, language and social structure – as amazing as these are in Paraguay – can be exhausting before you even factor in the bureaucracy required.
So for any Chinese nationals considering applying for dual residency in this beautiful and affordable South American nation, we recommend seeking out an experienced agency like Strategicasa to help you make this project come to fruition as quickly and easily as possible. Get in touch with us today to find out more about our dual residency and consultancy services for Chinese citizens.