Paraguay: residency and banking
ParaguayAmericas- Temporary residence validity
- Up to 2 years, extendable once for the same period
- As of 2026-10-25 · [1]
Overview
Paraguay has become a common choice for people who want a residence permit outside their home country without moving their whole life at once. The process is document-heavy rather than capital-heavy: the general temporary residence route lists no minimum investment, but every civil record has to be issued, apostilled and consistent before you travel.
Residents are taxed only on income with a Paraguayan source. Holding residency, a cédula (the national identity card) and a RUC (the tax number) does not by itself create a tax bill on foreign earnings. Whether your current home country lets you go is a separate question, answered by its own exit and residency rules.
Redomiciled coordinates the file from the first document check to the appointments in Asunción and connects you with licensed local lawyers and accountants. We are not a law firm and do not give tax advice; those professionals do.
Paraguay residency for founders and investors
Paraguayan temporary residency is a two-year permit, renewable once, for foreigners who want a legal base in South America and a territorial tax system that does not tax foreign-source income. As of October 2026 it is the required first step towards permanent residency. It suits remote founders, investors and location-independent professionals.
The general route is temporary residence under Law 6984/2022, Paraguay's migration law. It is granted for up to two years and can be extended once for the same period, and it precedes permanent residence. While the application is pending you hold provisional status that allows you to leave and re-enter, study and work.
Most of the work happens before the flight. Birth, marriage and police records must be official copies, apostilled, and issued by the country whose address appears on them. A record that shows another country's address usually has to be replaced by one from that country, which is the most common cause of delay we see.
Once you arrive, one focused visit is normally enough for the migration office filing, fingerprints and a power of attorney that lets local professionals finish the remaining steps. The cédula is couriered to you after issue, and the RUC tax registration follows.
Redomiciled coordinates this sequence and works with licensed Paraguayan lawyers and accountants, who provide all legal and tax advice.
Who it suits
Remote founders
You run a company elsewhere and want a residence with a territorial tax system and modest living costs.
Investors with foreign portfolios
Your income is mainly dividends, interest and gains generated outside Paraguay.
Families planning a second base
Spouses and children can be included, each with their own civil records and apostilles.
People building a plan B
You want a legal right to reside in South America without committing capital to an investment programme.
Requirements
- Required
Valid passport
Check validity well before the trip; in our experience a passport close to expiry can lead to requests for the previous one.
- Required
Apostilled birth certificate
An official copy from the civil registry, apostilled by the issuing country.
- Required
Apostilled police clearance
From your country of nationality or recent residence, consistent with the address on your other records.
- Required
Civil status record if married
An apostilled marriage certificate; earlier marriages can require additional records.
- Required
Personal attendance in Paraguay
Filing, fingerprints and the photo for the cédula are done in person; the process cannot be completed remotely.
- Depends on your case
Meeting with a local accountant
Useful to confirm how your income is classified and whether explanatory or nil filings make sense.
- Depends on your case
A longer first stay
Staying beyond the core appointments helps build a lease, local records and a banking history.
Documents
- Birth certificate (apostilled)Official copy issued by the competent civil registry.
- Police clearance certificate (apostilled)Issued by the country of nationality or of recent residence.
- Marriage certificate (apostilled), if applicableConfirms civil status; bring records of previous marriages too.
- Passport and proof of entryYour entry record into Paraguay forms part of the application.
- Local and Interpol background checksObtained in Paraguay during the process.
- Sworn declarationsStatements on compliance with Paraguayan law, your intended activity and your local address.
- Legal basis
- Law 6984/2022 (Migration Law)As of 2026-10-25 · [1]
- Document preparation at home (our experience)
- 20–60 days, depending on the countryAs of 2026-05-13 · [4]
- IRP on Paraguayan-source personal services
- 8% / 9% / 10% progressiveAs of 2026-10-25 · [2]
- IRP on capital gains
- 8%As of 2026-10-25 · [2]
- IRP liability threshold, personal services
- Gross income above PYG 80,000,000 a yearAs of 2026-10-25 · [3]
Timeline
- 1Collect and apostille documentsOrder civil and police records in the issuing country and have them apostilled. In our experience this takes 20 to 60 days, depending on the country.
- 2Document check before booking flightsWe review the set on a best-efforts basis for completeness, address consistency and apostille format. Originals can be sent ahead with a tracked courier; we advise against ordinary post.
- 3Travel and in-country filingAttend the migration office, sign the application and a power of attorney, and give fingerprints and the photo for the cédula. Arriving through some neighbouring countries can require a yellow fever vaccination record.
- 4Residence and cédula issuedLocal professionals continue under the power of attorney and the documents are couriered to you. In our experience the file completes about 105 days after the visit.
- 5Tax registration (RUC)With the cédula confirmed, the RUC application is filed, completing the core immigration and tax setup.
Tax notes
- Paraguayan personal income tax (IRP) is charged on Paraguayan-source income at progressive rates of 8%, 9% and 10%, with capital gains at 8%. Individuals whose gross income from personal services does not exceed PYG 80,000,000 a year owe no IRP on it.
- Income from non-Paraguayan companies, foreign dividends and interest, and work for foreign clients is generally foreign-source. Services performed abroad for Paraguayan taxpayers, however, count as Paraguayan-source income.
- Tax residency is not tested by a strict day count; in practice it follows immigration status plus registration with the tax authority. Your former country of residence applies its own rules, so plan the exit there separately.
- Many residents with only foreign income file little or nothing locally, while others make explanatory or nil filings to support banking and residency certificates. A licensed Paraguayan accountant should confirm which approach fits you.
General information, not tax advice. Your position depends on your circumstances.
Banking fit
- Paraguayan accounts are realistic once residency and the RUC are in place; each bank decides after its own due diligence.
- A local account and a lease make it easier to evidence residence to international banks later on.
- If banking is the main goal, start with our banking assessment, which looks at your whole profile rather than the permit alone.
Questions
How long does Paraguay residency take?
In our experience, gathering and apostilling documents takes 20 to 60 days, and the file completes on average about 105 days after your visit to Paraguay. Authority workloads and document problems can extend this.
Do I need to invest money to get Paraguayan residency?
The general temporary residence route under Law 6984/2022 asks for documents, background checks and sworn declarations rather than a minimum investment. Other residence categories have their own conditions.
How many times do I have to travel to Paraguay?
Usually once for the core steps: the migration filing, fingerprints and the power of attorney. Local professionals can complete the rest on your behalf. Some clients stay longer to build local ties for banking.
Can I send my documents to Paraguay before I arrive?
Yes, originals can be couriered ahead once they have passed our preliminary check. Use a tracked international courier; we advise against ordinary post.
What happens after the two years of temporary residence?
Temporary residence is valid for up to two years and can be extended once for the same period. It is also the step before an application for permanent residence, which a local lawyer prepares when the time comes.
Is Paraguayan residency the same as Paraguayan tax residency?
Not automatically. Tax residency generally follows immigration status combined with registration with the tax authority, which is why the RUC matters. Living in Paraguay does not end tax residence elsewhere; your former country's rules decide that.
Banking in our network
We do not publish institution names: the right partner depends on your profile, and each institution keeps its own view on who it will serve.
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Banking partners
- Local bank accounts usually become possible once the cédula and RUC have been issued. Every opening remains subject to each institution's due diligence.
- International private banks typically ask for the residence permit, a proof of address and evidence of tax registration. Those records take time to build after arrival, which is one reason some clients stay longer than the minimum visit.
- Our network includes private and corporate banking institutions that work with Paraguayan residents; we do not publish their names. Start with the banking assessment to see which of them fit your profile.
Questions
Does Paraguay tax foreign income?
Paraguayan personal income tax applies to Paraguayan-source income. Foreign dividends, interest and work for non-Paraguayan clients are generally outside its scope, although services performed abroad for Paraguayan taxpayers count as local income. Your former home country may still claim tax, so take advice there too.
Do I need to live in Paraguay to be tax resident there?
Paraguay does not apply a rigid day-count test for tax residency; in practice it rests on immigration status plus registration with the tax authority. Banks and your former home country, however, look for genuine ties, so many clients spend meaningful time in the country.
Can Redomiciled open a bank account for me in Paraguay?
We introduce you to suitable institutions and help you prepare the file. Each bank decides after its own due diligence, so no outcome can be promised in advance.
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Sources
- 1.Dirección Nacional de Migraciones: requirements for temporary residence under Law 6984/2022 (Agencia IP, state news agency), retrieved 2026-10-25
- 2.PwC Worldwide Tax Summaries: Paraguay, taxes on personal income, retrieved 2026-10-25
- 3.DNIT (Paraguayan tax authority): IRP filing and registration threshold, retrieved 2026-10-25
- 4.Redomiciled case experience: Paraguay residency files (internal), retrieved 2026-10-25
- 5.Redomiciled case experience: Paraguay tax residency practice (internal), retrieved 2026-10-25
- 6.Redomiciled case experience: recurring document issues in Paraguay files (internal), retrieved 2026-10-25
Reviewed by the Redomiciled team on .
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