Faq

What Is The Income Tax In Paraguay?

Paraguay applies a standard income tax rate of 10% when residing and earning your living within the country.

For income earned outside of Paraguay the income tax is 0%.

What Makes Paraguay Such An Attractive Country?

The personal financial impact that a residency in Paraguay enables also makes it very attractive. The price levels are considerably lower than most countries in the world, while simultaneously having access to all modern elements of a society in today’s world. The tropical climate also makes it the perfect country to retire in.

Why Residency In Paraguay Of All Places?

Looking at the speed, cost and requirements there is no other country that gives better opportunities than Paraguay

Most countries today have so called golden visas, which are residency by investment. Countries like Spain, Greece, Panama, Montenegro etc all have this opportunity, but through investments that most often is considerably higher than USD 100.000 (please follow Link). On top of this you will also have to be residing within the country to maintain the status and its benefits.

In Paraguay you neither need to continuously reside in the country, nor will you need to invest a massive amount of money to obtain and maintain the residency status.

Who Are Strategica’s Main Customers And Why?

Because of the great opportunities and freedom related to the residency permit, Strategica has seen a majority of our customers coming from sectors where remote work is a normal. Sectors such as IT, maritime & shipping, travel, transportation etc, all are frequent in our customer base.

In regards to the Covid pandemic, and the move towards a higher degree of remote work, Strategica has also seen an increase from other sectors. On top of that, people that live and work as digital nomads have a steady representation among our customers.

What Is Required To Start The Application Process And Become A Resident?

While Paraguay’s residency application process is one of the easiest to obtain in the world, the required documents need extra attention (mandatory). These need to be in perfect format, and Strategica is there to help you through this process and the requirements (please observe the Required Documents page).

What Is Included In The Price Of The Services?

One of the key elements of Strategica’s services are that they are very inclusive:

1. We always start with a consultation call to get to know the customer and to make sure that he/she understands the process/timelines
2. We give instructions of required documents, and validate the accuracy before you come to Paraguay
3. We ensure timely pick ups and transfers between airport, hotel and authorities
4. We manage the authority contacts and visits in order to limit the customers need to participate in unnecessary visits (>50% less visits than with other firms)
5. We deliver the swiftest residency process in the market
6. We care for the National Bank account and deposit when customer so wishes
7. We provide a dedicated representative to handle your specific residency process

The only thing that the customer needs to take care of is to book flight and hotel in Asuncion (we though support you in finding a place to stay in Asuncion with discount codes).

Is Strategica’s Price Higher Than The Competitors?

Many firms, or so called resident consultants, offer residency programs that initially look very attractive. However, many of these firms either promises too much, are straight up incorrect, or express things that are impossible to achieve.

At Strategica we honor our experience and competence. We understand that this process many times is life changing for the customer, and having a smooth and positive experience for the customer is therefore key. To promise too much, put the customer in a financial difficult situation, or simply not having control or delivering in time are not our thing!.

Strategica delivers on the promises, and that is why we sign a contract with each and every customer where all T&C are specified in detail.

Do I Need To Pay The Mandatory Deposit Of Gs. 31.000.000 To The National Bank Of Paraguay To Start The Process?

Everybody that applies to become a resident of Paraguay, as a proof of solvency, will need to pay the GS. 31.000.000 (Paraguayan currency Guaranis), appr $5.000 to the National Bank. This payment will however be paid back to the applicant as soon as the process is completed and the customer receives the residency.

Strategica has however developed a solution that eliminates this requirement. The customers therefore don’t need to bring the money, which is to be paid in local currency, in cash, to the national bank to open the account. By not needing to do this, the customer both eliminates the risk of carrying with them this big amount of money, while also eliminating the possible currency conversion risks that this implies.

How Can I Exclude The Mandatory National Bank Payment From My Process?

The customer can either by the service as an add-on service to their purchased package, or have it included directly when buying the Platinum Package. As a separate add-on service the price is $300, and can hence only be purchased to the Gold & Silver package.

What Are The Rules When Buying The Add-on Service Of Excluding National Bank Payment

This service is only available for a maximum of 90 days after the registration payment has been made. This means that the customer will have to complete and finalize the residency within a maximum of 90 days from registering and buying the package with Strategica. The reason for this is that Strategica is making this payment, in the customers name, to the Paraguayan National Bank, and cannot leave its capital locked for more than 90 days.

Therefore, when the 90 days have passed, and the customer has not yet decided to fulfill the complete residency process, Strategica will extract the down payment from the Paraguayan National Bank and consequently close the customer account.

How Is The Payment Made To Strategica?

First the customer pays the registration fee, which is $500 per customer (independent of package level). This payment is done through the website directly, and a variety of payment methods are available (Visa, Matercard, American Express, Diners, PayPal, Klarna etc).

The remaining part, will be divided in two parts and will be paid to our partner in Paraguay. 50% of it will need to be paid at the start of the process, and the other 50% will need to be paid when the process is completed and the customer receives the residency (ID-card, Tax-ID etc).

How Can I Get The Paraguayan Passport?

Residents must live three years in Paraguay to be able to apply for the Paraguayan passport. This means that the resident must spend at least 184 days in Paraguay, for three consecutive years, until becoming a Paraguayan citizen.

Do I Need A Visa To Enter Paraguay And Start My Application Process?

Depending on your citizenship, you may need an entrance visa to get into Paraguay. Paraguay’s visa regulations exempt 61 countries and jurisdictions from its entrance visa requirements (See following link of visa rules).

Some Citizens can also get visa on arrival: Australia, Canada, New Zealand, Oman, Qatar, United Arab Emirates, and United States. A reciprocity fee applies to visas for these citizens and is charged in US dollars.

Does Paraguay Also Have A Golden Visa Program?

DYes. Paraguay also have the golden visa program in place, which is called SUACE (Systema Unificado de Apertura y Cierre de Empresas). This program is mainly used by foreign investors when establishing businesses in Paraguay. This is a one-stop shop, where investors can register new companies and residence permit applications.

In addition to the general requirements, investors must obtain a certificate issued by the Vice Ministry of Industry and Commerce of Paraguay. This certificate qualifies them to SUACE, but also requires an initial capital investment, similar to the golden visa programs of other countries.

Strategica recommends legal and financial advise and assistance before initiating this process, and we are here to help you through the process of company establishment in Paraguay.

What Is The Cost Of Becoming A Resident Of Paraguay?

Strategica has a very simple and straight forward approach, which is part of our company core values. We offer a service that is swift, qualitative and that gives the customer what he/she is requesting.

The total price for the residency in Paraguay is between $4.700 to $5.700, depending on which package that the customer prefers. This is the TOTAL price (no hidden fees!).

How And When Will I Get The Tax-id?

The Tax-id will need to be requested when the residency card has been issued, hence in the end of the process. Strategica will make sure to handle all documentation in regards to the application, and will send over the id number to the customer as soon as its been issued by the authority. This usually takes two weeks, but the customer will not need to be present in Paraguay for this particular task.

How Will I Use The Tax-id In Regards To Declaring My Income?

As a Paraguayan resident, with a tax-id, you will have to declare your income. You will need to send the tax authority a number of different documents, from monthly reports of your income to your final tax declaration at the end of year, to make sure that you are compliant.

Because this may be somewhat complex for an individual residing mostly outside of Paraguay, Strategica offers a service where we can handle this for you. As specified before, if you earn your income outside of Paraguay, its tax exempt. However the authorities still require you to send all documents to them according to the rules.

Your Paraguayan Tax-id also works as the validation that you are registered and are a tax resident somehwere. When a countries that you may have been previously registered in, ask for taxes or clarity of your tax obligations, you can with the Paraguayan Tax-id clearly specify how and where you pay taxes. This makes.

What Are The Direct Benefits With Having A Paraguayan Tax-id?

The Paraguayan Tax-id works as the evidence that you are registered, and that you are a tax resident, somewhere. If you for instance have been registered in a country previously, and this country now asks for taxes or proof where you are paying your taxes, the Paraguayan Tax-id will serve that purpose.

This helps especially people that are working within the maritime and shipping industry, who often get these requests from authorities, from where they were born or previously registered in.