Paraguay offers permanent residency at a relatively low cost, with modest presence expectations and a territorial approach to tax. It is not for everyone, but as a backup base it is hard to beat on price.
What Paraguay offers
The attraction is a permanent residency that is inexpensive to obtain compared with most alternatives, in a country that operates a broadly territorial tax system, where foreign-sourced income is generally treated differently from local income.
That combination makes it popular as a second base rather than a primary home.
Who it suits
It suits people who want a durable, low-cost fallback residency and a foothold outside their home region, more than people who want to relocate their whole life there day to day.
If your main aim is an EU base with a low flat tax, Bulgaria is usually the better fit, and the two are not mutually exclusive.
The tax reality
A territorial system is not the same as paying no tax. Where you are actually tax resident, and how your home country treats your ties, still decides the real outcome, as with any move; see the 183-day rule.
Treat Paraguay as one piece of a wider plan, checked against your tax strategy.
The practical side
As with any second residency, the work is in the documentation, the local steps and keeping the status valid over time. Rules and requirements change, so current requirements should always be confirmed before you commit.
Work with us
We help you decide whether a second base like Paraguay fits your wider plan. See our residency service, or Book a Consultation.
Is it the right tool?
Choose Paraguay for what it is: a low-cost, permanent fallback. If you need an active tax base or an EU footing, a different route will serve you better.