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Residency in Paraguay, a country known for its security, offers many advantages, both economic and fiscal
Obtaining a residency in Paraguay and identity card, is not a complicated or lengthy process as long as you are advised by an expert in the matter. Below we discuss the steps to follow, the waiting time to receive the official documents and the costs associated with the operation.
Why apply for residency in Paraguay?
Paraguay is currently one of the countries with the highest political stability and economic growth in Latin America. The Central Bank of Paraguay estimated a 0.2% increase in GDP by 2022, but forecast a 4% increase by 2023. Agriculture, electricity production and livestock are three of the main drivers of the national economy..
Paraguay’s political environment has remained stable. The country’s population does not exceed eight million inhabitants and two languages are spoken: Spanish and Guarani. The current president of Paraguay is Mario Abdo Benítez, of the Colorado Party, who has been governing since 2018 and will finish his term in 2023, without the possibility of reelection.
The strong citizen security makes Paraguay a very attractive destination for those looking to live there. In addition, the climate is pleasant all year round. Foreigners residing in Paraguay enjoy the same rights as Paraguayan citizens, with the only exception that they cannot vote in any kind of elections
Tax policies are another important factor for foreigners taking up residence in Paraguay. Residents are not required to pay income tax on income earned abroad. The VAT applicable in the country is 10%, although it is also possible to obtain reductions of between 2.5% and 5%.
Incorporating a company in Paraguay is not that simple due to the long and tedious bureaucratic processes and the corporate tax rate of 10% of the income received. For this reason, foreigners applying for residency in Paraguay usually have previously incorporated their company abroad.
What are the necessary steps to obtain residency in Paraguay?
Anyone who can enter Paraguay without a visa can apply for residency. At this time, citizens of most South American countries, as well as U.S. citizens, Canadians, members of the European Union, Russians, Georgians and Israelis do not need an entry permit and can therefore apply for residency.
The application process for residency in Paraguay can be completed in five working days. Subsequently, the resolution of temporary residence takes between five and eight months. This resolution will be valid for two years. Once this time has elapsed, the person may apply for permanent residency.
The documents to be submitted in the application for residence in Paraguay include: the applicant’s complete birth certificate ( including the names of the parents), duly apostilled; the criminal record certificate and the civil status, both also apostilled. Documents not in Spanish must be translated into Spanish, and must also be apostilled.
Those interested in becoming residents of Paraguay must travel to the country at least once to complete the process.
Once the resident card is available, the individual may pick it up themselves or the expert who assisted them in the residency process has the authority to pick up the document. The individual can then choose to pick up the document or have it sent to them.
To avoid losing residency in Paraguay, it is essential that the person visits the country at least once every three years.
It costs USD 8,000 to apply for residency in Paraguay, not including the stay, translations of documents and travel to the country. In addition, if the person wishes to obtain a Paraguayan driver’s license and open a bank account in the country, each service will cost USD 1,000.
