Paraguay Permanent Residence Programme

You may not yet be familiar with the Republic of Paraguay. But the Paraguay Residency is perhaps the ultimate Plan B residency for the unstable times we live in. For a modest investment, you can obtain a Paraguay Residency Permit and buy into a country that is booming for all the right reasons:

• Paraguay has almost unlimited renewable energy. World’s largest electricity exporter.

• Huge underground reserves of fresh water.

• Major food producer: world’s 5th largest exporter of beef.

• Stable economy with no exchange or currency controls.

• Friendly tax system: Paraguay has 10% corporate and personal tax rates, no tax on worldwide income. Paraguay also has no wealth tax, no capital gains tax, no inheritance or estate tax, and no capital acquisitions tax.

• Financial privacy: No CRS reporting on bank assets or other deposits. The nation is yet to set a date to start exchanging information.

In November 2022, the government enacted a new residence and migration law that has already come into effect. The new law streamlines the residence application process. Although certain requirements for residence are now more onerous, overall the changes are positive. The residence process is better defined and runs more efficiently.

Why Choose Residence by Investment in Paraguay?

Paraguay is a pro-business democracy with a government that supports foreign investment. The residency application is comparatively a simpler process, and it is structured to foster full access of committed applicants to the country’s life and economy. Paraguay’s is a multi-purpose residency, ideal either for young applicants, digital nomads, seasoned businessmen or those looking at a relaxed tax environment or even retiring.

Historically Paraguay was somewhat isolated from the world due to geography and politics. However, that has changed in recent years. Since 1992 Paraguay has quietly but decidedly adopted an international and outward facing worldview, and residence program improvements designed to streamline the residence application process specifically for foreigners who can bring benefits to the country.

Two Routes to Obtain Residence in Paraguay

The residency process rules are clear and straightforward in Paraguay. In addition to the traditional paths to residency (marriage, family reunification, work and others), there are two routes under which a foreign national can apply:

1. Traditional route: Interim residency (2 YEARS – TEMPORARY) FOLLOWED BY PERMANENT RESIDENCY

Whether applying for temporary residency or permanent, the applicants and their family members who are also seeking residency, must travel for a brief stay in Paraguay. The application is done in person in a span of three to five days business days, with the adept assistance of NTL Trust’s representative. We take care of all the necessary actions for the submission on the ground.

The Temporary Residency is usually granted by the Immigration Authority within approximately 90 days from the date of submission. NTL Trust will diligently courier the Card to the applicant’s desired destination if they have already left Paraguay. The status of temporary resident is supported by the National ID Card (Cedula de Identidad), issued with a two-year validity, and entitles the holder to live, work and set up a business in the country.

A Paraguayan Cedula facilitates the domestic Tax ID, opening of bank accounts at local banking and non-banking institutions, obtaining a Paraguayan Drivers’ licence, much as a Permanent Resident could. Prior to 2022, temporary residents in Paraguay were not eligible for cedulas, which is now one of the greatest advantages brought by the recent legislative changes.

There is no express or specific requirement for physical presence in the jurisdiction, however, it is advisable to visit the country minimally twice during the initial two-year period. Temporary residency holders in Paraguay qualify to apply for permanent residency. It is not a right, it is a prerogative, and the application must be approved. Another way to feasibly demonstrate attachment to the jurisdiction while being a temporary resident is to form a company, or develop some commercial, technical or professional activity in the country. Real Estate acquisitions are also an option to demonstrate ties. Our Paraguayan team based in Asuncion, will be happy to assist in any of these endeavours.

Before the two-year temporary residency expires, the application for permanent residency can be lodged. NTL Trust is positioned to assist with this phase of the residency, preparing the supporting documentation to accompany the application putting all efforts into a successful outcome.

Once Permanent Residence status is granted, the Permanent Resident ID card is valid for 10 years and the holder will also be entitled to a Paraguayan Cedula card with the same 10 year validity period.

2. Expedited Permanent Residency in Paraguay: the SUACE route. 

An alternative Paraguay residency by investment program exists that allows the investor to jump straight to the 10 year Permanent Residence status, bypassing the requirement for two years of Paraguayan Temporary Residency.

The SUACE business residency by investment program in Paraguay is worth considering if you are starting a business, or opening a branch or representative office of your existing foreign company. 

The minimum amount for residency by investment under the SUACE program is US$ 70,000. It’s worth noting that you do not have to directly invest the amount or show that you have this amount in your bank account. Rather, you are required to spend the investment amount during a ten year period. A simple business plan will be needed. It is probably advisable to show more than the minimum projected spending, as US$7,000 per year for 10 years is clearly not a large amount on which to run a business.

The SUACE Paraguayan residency by investment program aims to stimulate the economy by forming companies and creating jobs. As such it is not intended for retirement, although it might be an attractive option for those retired persons looking to start a small consulting or family office type business. 

Documents Required for Paraguay Residence and Cedula

Whichever route you apply under, the basic documents required are the same:

1. Birth Certificate

2. Marriage certificate if married

3. Police criminal records certificate from country of birth, and any country where you have resided in the past ten years.

These documents must either be certified by apostille, or legalised by the Paraguayan consulate in the country of issue.

As part of our service in Paraguay, we will obtain certified translations to Spanish of these documents and any necessary local legalizations as per official requirements.

A local police registration certificate (“white card”) and a clearance certificate from the Paraguayan Interpol office will be obtained by our staff on the ground.

Note: from November 2022 onwards, it is no longer obligatory to present a medical checkup or certificate.

Opening Bank or Brokerage Accounts in Paraguay

It is no longer obligatory to deposit any funds in a local bank in order to apply for Temporary Residence in Paraguay. However, once you obtain the Temporary Residence it is highly recommended to open a local bank account and deposit funds that will support your reasonable living expenses. 

Local banks offer deposit accounts in both US dollars and PYG local currency. Rates of return are attractive as Paraguay is a booming emerging economy. NTL Trust can assist you with opening bank accounts in Paraguay either in person or online. This service is additional and complementary to our Paraguay Residence by Investment assistance services.

It is generally not possible for non-residents to open Paraguayan bank accounts directly. However, those seeking to partake in the Paraguayan economy without obtaining residence may invest through brokerage houses that open accounts for non-residents. These accounts allow for purchase of Paraguayan stocks and bonds, as well as fiduciary deposits in Paraguayan banks.

Citizenship in Paraguay

Paraguay does not have a formal Citizenship by Investment program. However, successful applicants under its Residency by Investment programs may apply for citizenship any time after three years of Permanent Residency.

Requirements are:

• Being fluent in one of the two national languages (Spanish and Guarani)

• Knowledge of the political constitution of Paraguay.

• A track record of residence and integration in the country.

Dual or Multiple Citizenship in Paraguay

According to the Paraguayan Constitution, dual or multiple citizenship may be permitted by an international treaty or by reciprocity of constitutional rank, between the States of origin and adoption. Currently, the only country where such a treaty is in force is Spain. However, de facto the renunciation of one's other nationality is not normally required by the Paraguayan authorities. As each individual case is unique, we recommend consulting a qualified Paraguayan attorney if you wish to hold dual citizenship in Paraguay.

Get Started Today with Residence in Paraguay

The Step by Step Process to Paraguay Permanent Residency and your Paraguay Cedula is clear.

1. Make contact with NTL Trust, receive professional immigration advice, sign a contract and start your file.

2. Collect the necessary documents in your home country.

3. Visit Paraguay for Temporary Residence and establish substance

4. Return two years later for Permanent Residence

The first step starts today by making contact with your local NTL Trust office. Please use our contact form initially and we will channel your enquiry to the appropriate consultant.