How to Obtain Tax Residency in Paraguay: Your 2026 Move Plan

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You are a freelancer, remote employee or founder thinking about Paraguay as your tax home. By the end of this guide you will know the 2026 residence test, the immigration steps, what Paraguay actually taxes, and how to make your move stick when your old country asks questions.

Paraguay tax residency in 2026: the key figures

Is this guide for you?

Read on if you…

• earn online income and want a low-tax, territorial base in South America;
• already hold or plan to apply for Paraguayan temporary or permanent residence;
• need a tax residency certificate that your bank or former tax office will accept.

Probably not your case if you…

• only want a second residence card and plan to keep living in your home country full time;
• run a business with employees in Paraguay, where corporate rules matter more (see our corporate income tax guide).

When does Paraguay consider you a tax resident?

Law 6380/2019, the 2019 tax reform, sets the test for individuals. You are a Paraguayan tax resident if either of these applies:

• you hold permanent residence (residencia permanente) under immigration law; or
• you are physically present in Paraguay for more than 120 days in any 12-month period.

There is no centre of vital interests test – basically, Paraguay does not look at where your home, partner or business is. Presence or permanent status is enough. That makes Paraguay one of the easiest countries to become resident in.

Here's the catch. Your old country still applies its own tests: 183 days, permanent home, family, economic ties. A Paraguayan cédula alone rarely breaks those links. Read our ceasing tax residency guide for the exit side.

Residence tests compared

What does Paraguay actually tax once you are resident?

Paraguay runs a territorial system. Income from work done in Paraguay, property in Paraguay and Paraguayan clients is Paraguayan-source and taxable. Income from your clients abroad, while you sit in Asunción, is treated as Paraguayan-source too: the work is performed in Paraguay.

Two personal taxes matter:

• IRP-RSP (rentas derivadas de servicios personales) – tax on employment and freelance income. Rates are 8% up to PYG 50 million of net income, 9% between PYG 50 and 150 million, and 10% above. You only register once your annual income passes 80 minimum monthly wages.
• IRP-RGC (rentas y ganancias de capital) – a flat 8% on rents, interest, royalties and capital gains of Paraguayan source.

Good news: most personal and family expenses with a Paraguayan invoice are deductible under IRP-RSP. Details are in our deductions guide.

One exception to territoriality: certain foreign financial income of residents, such as interest and dividends from securities issued abroad, falls within IRP-RGC at 8%. Gains on crypto and foreign assets are covered in our crypto taxes guide and capital gains guide.

How do you get Paraguayan residence step by step?

Immigration residence is handled by the Dirección Nacional de Migraciones under Law 6984/2022. The standard route is temporary residence first, permanent residence later.

1. Gather documents at home. Birth certificate, criminal record certificate from your country of residence, marriage certificate if relevant. All apostilled and translated into Spanish by a registered translator.
2. Enter Paraguay as a tourist and file your temporary residence application at Migraciones in Asunción. Expect an interview and a local criminal record check (Interpol and police).
3. Receive your temporary residence (valid two years) and apply for your cédula at the Departamento de Identificaciones of the National Police.
4. Register for a RUC with DNIT once you have income or need a tax certificate. Registration is done through the Marangatu online system after a first in-person validation.
5. Build real presence. Rent a flat in your name, open a local bank account, keep utility bills and entry and exit stamps.
6. Convert to permanent residence after two years of temporary residence, or sooner through an investor route.

Faster routes for investors

• SUACE route: Law 60/90 investments of about USD 70,000 registered through the Sistema Unificado de Apertura y Cierre de Empresas, with local job creation conditions, give direct access to permanent residence.
• Investor Pass: since 28 April 2026, MIC Resolution 0283/2026 offers permanent residence for investments from about USD 200,000 in real estate or securities.

Processing times vary with Migraciones' backlog. Budget three to six months from filing to cédula, longer if documents are missing.

How do you get the tax residency certificate?

The DNIT issues a constancia de residencia fiscal – the paper your bank, broker or former tax office wants. In practice you need:

• a cédula and an active RUC;
• a Paraguayan address and proof of stay (entry and exit records, lease, utility bills);
• evidence of more than 120 days of presence, or permanent residence.

Honestly? For most freelancers this is the step that separates a real move from a paper one. Paraguay rarely refuses a certificate when the presence is real. It will not issue one on the strength of a cédula and a two-week visit.

Your move plan: before, during and after

Common mistakes (and what they cost)

• Treating the cédula as a tax certificate → your former country keeps taxing you, and Paraguay cannot issue a constancia without proof of stay.
• Staying under 120 days → you are not resident anywhere clearly, banks freeze accounts, and your old country reclaims you.
• Ignoring the 80-wage threshold → unregistered IRP-RSP taxpayers face back taxes, interest and fines from DNIT when they later request a certificate.
• Assuming all foreign income is tax free → foreign interest and dividends can fall under the 8% IRP-RGC; omission is a filing offence. See our tax fraud guide.
• Letting temporary residence expire → you restart from zero and lose the path to permanent residence.

Frequently asked questions

How many days do I need to stay in Paraguay to be tax resident?

More than 120 days in any 12-month period under Law 6380/2019. Holding permanent residence also makes you tax resident regardless of days. For a tax residency certificate, DNIT will want evidence of that presence, such as entry and exit records and a lease, so plan at least four to five months on the ground in year one.

Does Paraguay tax my foreign freelance income?

If you do the work while physically in Paraguay, the income is Paraguayan-source and taxable under IRP-RSP at 8% to 10%, once you pass the registration threshold of 80 minimum monthly wages. Income from work genuinely performed abroad is outside the tax. Foreign interest and dividends can be taxed at 8%.

How long does Paraguayan residency take?

Temporary residence usually takes three to six months from filing to cédula, depending on the backlog at Migraciones and whether your apostilled documents are complete. Temporary residence lasts two years and can then be converted to permanent residence. Investor routes through SUACE or the 2026 Investor Pass lead straight to permanent residence.

Can I get a tax residency certificate with only a temporary residence?

Yes, provided you meet the 120-day test and hold a RUC. The certificate is based on tax residence, not immigration category. DNIT will ask for proof of presence and a local address. Permanent residents qualify automatically on status, but still need the RUC and documents to receive the paper.

What are Paraguay's income tax rates in 2026?

IRP on employment and services is progressive: 8% on net income up to PYG 50 million, 9% from 50 to 150 million, 10% above. Capital income and gains pay a flat 8%. Dividends from Paraguayan companies carry an 8% dividend tax (IDU) for residents. There is no wealth tax and no inheritance tax.

Does Paraguay have tax treaties that protect me from double taxation?

Only a handful. Treaties exist with Chile, Uruguay, Taiwan, Qatar, the United Arab Emirates and Spain, among very few others. Without a treaty, relief depends on your former country's domestic rules. Because Paraguay is territorial, double taxation is rare in practice, but residence conflicts with your old country are common.

Related guides

• Ceasing your tax residency in Paraguay
• Tax incentives for expats and digital nomads in Paraguay
• Personal tax deductions and benefits in Paraguay
• Paraguay tax landscape overview
• Obtaining tax residency in Mexico
• Obtaining tax residency in Costa Rica
• All country tax guides

Sources

• DNIT – Dirección Nacional de Ingresos Tributarios
• Dirección Nacional de Migraciones
• Law 6380/2019 – Biblioteca y Archivo Central del Congreso Nacional
• Ministerio de Industria y Comercio (SUACE, Investor Pass)
• PwC Worldwide Tax Summaries – Paraguay, individual

This guide is general information, not personalised tax advice. See how we research and review.