Residency in Paraguay: a country with political stability, economic growth and a very favorable tax system.
Las ventajas de la residencia en Paraguay son innumerables: bajo coste y alto nivel de vida y tarifas eléctricas muy bajas
Residency in Paraguay offers tax exemption for income earned abroad, the possibility of obtaining citizenship after 5 years of residency, a high standard of living with low living costs, as well as one of the lowest electricity rates in the world.
We can help you establish residency in Paraguay in 5 business days. The cost is 3,000 EUR, but no business or bank accounts are required. The country has public clinics and hospitals considered advanced in technology, cleanliness and efficiency. Paraguay offers a private health care system based on the North American model at very affordable prices.
To obtain residency in Paraguay, the following documents are required:
– Cumulative birth, family, citizenship certificates
– Marital Status Certificate
– Criminal records
* All documents must be apostilled for Paraguay and translated into Spanish by an authorized public translator and all translations must be apostilled.
Citizens of 59 countries and jurisdictions are exempt from visa requirements. It is advisable to check with the Paraguayan consulate or airline for visa requirements. Nationals of these 59 countries can enter Paraguay without a visa and stay up to 90 days. Meanwhile, 7 other countries can obtain a visa upon arrival if arriving through Silvio Pettirossi International Airport. Citizens of Oman, United Arab Emirates and Qatar can obtain a visa on arrival at any point of entry. All other nationalities should contact the nearest Paraguayan diplomatic embassy and apply for a consular visa.
To maintain residency in Paraguay, it is necessary to return to the country at least once every two years.
Some news for those thinking about residency in Paraguay
Paraguay, often unknown to Europeans, offers countless advantages, including the possibility of establishing residency in Paraguay. With a 10 percent VAT and a low tax burden, life is affordable. With a population of about seven and a half million in a territory the size of one and a half times Italy, Paraguay is a haven for those seeking tranquility.
The call to Italy is strong, with many people of Italian descent and a local cuisine centered on flour. One unusual detail: the widespread presence of the bidet in homes. However, what really makes Paraguay special is its incredibly friendly people and vast unspoiled natural space.
Paraguay’s humanity is diverse, having always been a land of immigration. In the north, the presence of Mennonites, descended mainly from Germans, characterizes extensive agriculture. However, those who cannot stand the extreme heat may find themselves in trouble.
The seasons are divided into a warm and a relatively cooler one, but the traditional winter is virtually absent. The sun is often bright even if the bad weather is brief. The family still retains a central role, recalling the Italian 1970s, with Sunday tables and an atmosphere of simplicity.
The warm season sees people going out with striped deck chairs and tereré, a drink similar to Argentine mate, to enjoy the sun and conversations under the shade. Paraguay is a fascinating and diverse land, ready to welcome those seeking a refuge from the hustle and bustle, including establishing residence.
Money and banking in Paraguay
The official tender currency is the Guaraní, among the oldest in the Americas and enjoying stability.
Opening a bank account in Paraguay is not always easy. I recommend two online options: Revolut and Wise. It is wise to still open them in Italy, use them locally and bring your card. They are tested and appreciated by many residents.
Both offer advantages: for incoming transfers you pay nothing, fees for outgoing transfers are minimal. Above all, the exchange rate is very advantageous and updated instantly.
However, Paraguay has some restrictions. Withdrawals are limited to about 400 euros per day, with a fee of about 3 euros and additional charges depending on the amount and the teller.
Local banks vary in their requirements. Banco Vision and Banco Basa do not accept foreigners. Some ask for demonstrable income or origin of funds.
Banco Itaú requires income and offers many advantages. Bancop, Banco Sudameris and Banco Continental require proof of origin of funds.
In addition, there is Banco Familiar, where you can open an account without all these restrictions, although limited, and the savings bank-like credit unions, with facilities for opening passbooks.
Ultimately, choosing the right banking option requires attention to restrictions and conditions, but can offer significant advantages, especially for those considering residency in Paraguay.
I tested with by making two purchases, one with the REVOLUT card and the other with the WISE card. Zero commissions with Wise and 5 cents with Revolut. Exchange rate similar to the official one.
Cost of Living
Prices vary according to standard of living, but we will give an idea of costs in Paraguay, expressed in euros, for those considering residency in Paraguay.
Education: Private schools for children can cost 58 euros per month, like our choice. Italian Dante Alighieri School can cost between 150 and 220 euros monthly.
Fuel: Gasoline at 1 euro/liter, diesel at 1.27 euro/liter. Near Argentina, gasoline is cheaper.
Internet: various rates, on 38 euros/month for ADSL, TV and sports channels.
Phone plan: 11 euros/month for 8 gigs, Amazon Prime, WhatsApp and unlimited calls.
Beauty: men’s haircut 5 euros, women’s 6 euros. Semi-permanent nail polish on hands and feet at a luxury spa with 14 euros.
Clothing: T-shirt 15-20 euros, pants 20-25 euros. Nike-type sports shoes at the same price with Italy, leather footwear (sandals, boots, and loafers) from about 10 to 38 euros.
Each spending choice depends on personal priorities and the perspective of those who desire residency in Paraguay.
Costs of Food Items
Let’s explore prices in the Paraguayan supermarket in euros to get an idea of living costs for those who want to get the residency in Paraguay
Whole Milk 1 liter: 0.87
Lactose-free milk 1 liter: 0.89
French Bread Baguette: 0.48
Flour 1 Kg: 0.76
Carbonated Mineral Water 2 Liters: 0.41
Natural Mineral Water 2 Liters: 0.38
Coca Cola 1.5 Liters: 1.39
Pasta (Acceptable Quality) 400 gr: 1.14
Tomato Puree 1 liter: 1.39
Choice Minced Meat 1 Kg: 5.90
Sugar 1 Kg: 1,14
Butter Bread 200 gr: 1,58
Eggs (Carton of 6): 0.86
Local Rice 1 Kg: 0.76
Dishwashing liquid 1 liter: 0.90
Fabric Softener 1 Liter: 1.99
Cloth Detergent 1 Liter: 2.50
The House in Paraguay
Electricity: for a 130 square meter house with three people, the bill is 10 to 13 euros monthly.
Water: the water bill is around 8 euros per month, with a maximum of 15 euros.
Rent: in Encarnacion, you pay 250 euros for a 130-sqm house with a pool and garage. The level of finishes is lower than in Europe. Luxury houses can cost up to 600 euros a month, while simpler solutions are around 125 euros. In Asuncion, prices are slightly higher: 300 to 1,000 euros per month.
Purchase: buying land is widespread, with opportunities to build right away. Mortgages for foreigners are difficult, but there are builders who offer installments similar to rent. Prices vary widely: from fixer-upper houses at 10,000 euros to prestigious villas at 200,000 euros.
For more information, you can visit the websites of Paraguay’s real estate agencies, also considering the option of buying direct to save on brokerage.
Insurance for a Serene Life
Health Insurance: In Paraguay, public hospitals are not of a high standard. It is highly advisable to have private medical insurance. Plans vary, but basically cover doctor visits. Clinical tests, hospitalizations and surgeries vary: some cover 100 percent right away, others after months of membership. Prices vary, from 20 to 100 euros monthly per person.
Auto Insurance: Incredibly, in Paraguay it is not mandatory to insure vehicles and motorcycles. Without insurance, in case of an accident, the expenses are personal. We also insure our car for entry into Argentina. Old cars have only civil liability. Insurance lasts one year, freely renewable. It costs about 10 euros monthly, but theft and fire incur additional costs. Sancor Seguros is a good choice.
Insurance offers peace of mind for those who want residency in Paraguay.