Paraguay
Territorial tax and the region's simplest residency path
Estimates for planning purposes — confirm with an official source before you act.
Executive summary
Paraguay is the low-friction, low-cost option: permanent residency is achievable with a modest deposit, and foreign-source income is generally untaxed. In exchange you get a small country with limited infrastructure, hot summers, and a thin expat scene.
Main draws
- · Territorial tax — 0% on foreign income
- · Fast, cheap permanent residency
- · Lowest cost base in the region
Main frictions
- · Extreme summer heat
- · Limited healthcare depth
- · Small international connectivity
Visas & legal residency
Tourist entry: 90 days. US passport holders: Visa-free.
Permanent Residency (SEPRELAD deposit)
Path to residency- Typical cost
- ≈ $500–1,500 USD in fees
- Income / asset threshold
- Bank deposit ≈ $5,000 USD
- Processing time
- 2–4 months
- Maximum stay
- Permanent
Temporary Residency
Path to residency- Typical cost
- ≈ $350 USD
- Income / asset threshold
- Proof of solvency
- Processing time
- 1–3 months
- Maximum stay
- 2 years
Investor (SUACE) Residency
Path to residency- Typical cost
- ≈ $1,000 USD
- Income / asset threshold
- ≈ $70,000 investment plan
- Processing time
- 3–6 months
- Maximum stay
- Permanent
Retirement Residency
Path to residency- Typical cost
- ≈ $500 USD
- Income / asset threshold
- Documented pension
- Processing time
- 2–4 months
- Maximum stay
- Permanent
Where to apply: Dirección General de Migraciones in Asunción; most applicants apply in-country.
Financial & cost of living
Local prices in PYG; USD equivalents at recent averages.
| Category | Monthly range (USD) |
|---|---|
| Housing (1BR, central) | $280 – $550 |
| Utilities & Internet | $55 – $110 |
| Groceries | $170 – $300 |
| Dining & Social | $120 – $280 |
| Healthcare | $50 – $130 |
| Local Transport | $25 – $70 |
| Total | $700 – $1,440 |
Tax snapshot
- Residency trigger
- 120 days of presence, or permanent residency status
Paraguay taxes only Paraguayan-source income. Foreign income is generally outside the net, and rates on local income are flat and low.
US citizens: No US–Paraguay income tax treaty. US citizens still owe US tax on worldwide income and must file FBAR/FATCA reports.
Banking
Paraguay
DifficultAccount opening
- Non-resident accounts
- ✕
- In-person required
- ✓
- Proof of address needed
- ✓
- Typical opening time
- 2–6 weeks after cédula issued
Documents: Passport, Cédula paraguaya, Proof of address, Source-of-funds letter
Fees & costs
Services
- Multi-currency accounts
- ✓
- USD accounts
- ✓
- Credit cards
- ✓
- Debit cards
- ✓
Fintech options
- Wise
- ✓
- Revolut
- ✕
- N26
- ✕
- Crypto-friendly banking
- ✓
Estimates for planning purposes — confirm with an official source before you act.
Health insurance
Paraguay
Very AffordableMonthly costs (USD)
- Typical deductible
- $150
- Average copay
- 20%
Scores
Coverage details
- Dental
- ✓
- Vision
- ✕
- Emergency evacuation
- ✓
- Public option access
- ✓
- Waiting period
- 60–90 days
- Pre-existing conditions
- Generally excluded on private plans
- Maternity
- Covered after 12 months
Quick facts
- Major providers
- Asismed, Migone, Sanatorio Americano, MAPFRE
- Claims process
- Largely paper-based
- English support
- Very limited
Expat tip
Serious or complex procedures are commonly done across the border in Argentina or Brazil — an international plan with regional coverage is worth more here than a purely domestic one.
Costs are estimates and vary by age, health status, provider, and plan — this is not financial or medical advice.
Housing & infrastructure
Asunción
Villa Morra
Best for Expats / convenienceModern towers, malls, and most international services.
Asunción
Carmelitas
Best for FamiliesQuiet, green, good private schools nearby.
Encarnación
Costanera
Best for Riverfront / quietBeach-town feel with a much lower cost base.
Foreign buyers face few restrictions outside border zones, and prices per square metre are the lowest in the region.
Getting around
Paraguay
$1.08/L · $4.09/gal- International Driving Permit
- ✓
- Licence conversion
- Convert once you hold a cédula; process is quick
- Tolls
- Few tolls; low-cost where they exist
- Mandatory insurance
- Third-party insurance required in practice, weakly enforced
- •Motorcycles dominate traffic and rarely yield.
- •Rural roads flood quickly in the rainy season.
- •Border crossings to Brazil and Argentina need vehicle permission paperwork.
Public transit: Bus networks are basic; a car or ride-hailing is effectively necessary in Asunción.
Strategic action plan
A four-phase view of a move to Paraguay, using the same checklist logic as the Moving Timeline Planner.
- 1
3 Months Out
- · Confirm which visa category fits your situation and income
- · Check passport validity — most countries want 6+ months
- · Order apostilles for birth, marriage, and police records
- · Request a background check from your home country
- · Start or resume language study
- 2
6 Weeks Out
- · Submit the visa application or consular appointment request
- · Notify your bank and card issuers of the move
- · Open a low-markup international transfer account
- · Get medical and dental checkups; collect records
- · Arrange international or destination health insurance
- 3
2 Weeks Out
- · Book flights and first-week accommodation
- · Set mail forwarding and update your registered address
- · Cancel or transfer utilities, gym, and subscriptions
- · Scan every key document to encrypted cloud storage
- · Refill prescriptions for 90 days and carry the paperwork
- 4
Moving Week
- · Withdraw a small amount of destination currency in cash
- · Confirm baggage allowance and repack to the limit
- · Carry originals of visa, insurance, and financial proofs in hand luggage
- · Give a trusted contact your itinerary and document copies
- · Do a final walkthrough and hand over keys
Estimates for planning purposes — confirm with an official source before you act.
Social integration
Where people meet others
Bilingual Spanish–Guaraní culture, family-first, slow-paced and notably welcoming to newcomers.