For many global citizens, securing a second residency or passport isn’t just about travel convenience, it’s about creating a backup plan, diversifying lifestyle options, and ensuring long-term stability. While countries like Portugal, Malta, and Dominica often dominate conversations, Paraguay has quietly emerged as one of the most attractive residency programs in the world.
With low entry costs, straightforward requirements, and a clear path to permanent residency and citizenship, Paraguay’s residency program is gaining attention among expats, retirees, and high-net-worth individuals alike.
If you’ve been considering relocating or securing a “Plan B” residency, here’s everything you need to know about Paraguay Residency.
Paraguay Residency
Types of Residency in Paraguay
Paraguay offers different pathways to residency depending on your goals:
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Temporary Residency – Issued initially for 1–2 years, renewable until permanent residency is granted.
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Permanent Residency – Usually granted after a qualifying deposit or investment. Allows you to live indefinitely in Paraguay.
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Residency through Investment – Most common method, requiring a $5,000–$15,000 deposit in a Paraguayan bank or Central Bank account.
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Residency by Work or Study – Granted if you’re employed, starting a business, or pursuing higher education.
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The Deposit Requirement Explained
Unlike “golden visa” programs in Europe that require hundreds of thousands of dollars in real estate or government bonds, Paraguay’s system is straightforward:
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Make a deposit of about $5,000–$15,000 USD in the Paraguayan Central Bank.
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This acts as proof that you can sustain yourself in the country.
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Once permanent residency is approved, you may be allowed to withdraw the deposit.
This low entry barrier makes Paraguay one of the most accessible residencies in the world.
Step-by-Step: How to Apply for Paraguay Residency
1. Gather Documents
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Valid passport
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Birth certificate (apostilled)
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Police clearance from home country (apostilled)
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Proof of financial means (bank statement, investment funds, or job contract)
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Medical certificate (done in Paraguay)
2. Arrive in Paraguay
You must be physically present to apply. Most applicants fly into Asunción, the capital, to handle paperwork.
3. Deposit Funds
Place the required $5,000–$15,000 USD in a Paraguayan bank or with the Central Bank.
4. Submit Residency Application
File documents with Paraguay’s immigration office. This includes biometrics, forms, and fees.
5. Temporary Residency Granted
You may first receive temporary residency while your permanent application is processed.
6. Permanent Residency
Once approved, you’ll receive your permanent residency card and national ID.
7. Citizenship Eligibility
After 3 years of permanent residency, you can apply for Paraguayan citizenship and a passport.
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Benefits of Paraguayan Residency
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Tax Advantages – Territorial tax system (foreign income not taxed).
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Affordable Lifestyle – Monthly living expenses can be as low as $1,000 for a couple.
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Ease of Residency – Minimal bureaucracy compared to other countries.
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Dual Citizenship Allowed – Paraguay recognizes multiple citizenships.
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Mobility – Paraguayan passport grants visa-free or visa-on-arrival access to 140+ countries, including much of South America and parts of Europe and Asia.
Why Paraguay?
Paraguay is a landlocked South American country bordered by Brazil, Argentina, and Bolivia. Though often overlooked compared to its neighbors, it offers several benefits that make it attractive for residency:
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Low cost of living – Affordable housing, food, healthcare, and transportation.
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Mild tax regime – Territorial taxation, meaning only Paraguay-sourced income is taxed.
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Low entry investment – Residency possible for as little as $15,000 deposit.
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Friendly immigration policies – Simple process compared to Europe or North America.
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Path to citizenship – After 3 years of permanent residency, you can apply for naturalization.
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Strategic location – Easy travel within South America.
Things to Keep in Mind
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Language – Spanish and Guarani are official languages, so learning basic Spanish is recommended.
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Stay Requirements – To maintain residency, some presence in Paraguay is advisable, though rules are not as strict as in Europe.
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Bureaucracy – While simple, processing times may vary; patience is key.
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Healthcare – Affordable but may not meet top international standards outside of Asunción.
Who Should Consider Paraguay Residency?
Paraguay is perfect for:
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Digital nomads looking for a low-tax base.
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Retirees seeking affordable living.
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Investors wanting a residency option without huge capital requirements.
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Families planning long-term second citizenship strategies.
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Anyone seeking a backup residency for global flexibility.
Frequently Asked Questions About Paraguay Residency
1. How much does it cost to get residency in Paraguay?
The primary requirement is a refundable deposit of $5,000–$15,000 USD with a Paraguayan bank or the Central Bank. In addition, you should budget for document preparation, apostilles, translations, and possible legal fees.
2. Do I need to live full-time in Paraguay to keep my residency?
Paraguay does not have strict residency requirements. However, it’s advisable to visit occasionally and maintain ties to ensure your residency remains valid.
3. How long does it take to get permanent residency?
Processing times vary but typically range from 6 months to 1 year. Many applicants first receive temporary residency while awaiting final approval.
4. Can I bring my family with me?
Yes. Spouses and children can be included in your application, but you will need to provide marriage or birth certificates (apostilled).
5. Do I need to speak Spanish to apply?
No, Spanish is not a requirement for residency approval. However, since Spanish and Guarani are official languages, learning basic Spanish is highly recommended for daily life.
6. Can I apply for citizenship after residency?
Yes. After 3 years of permanent residency, you may apply for Paraguayan citizenship and a passport, which allows visa-free access to over 140 countries.
7. Is the deposit refundable?
Yes. The $5,000–$15,000 deposit is not a fee but proof of financial means. In most cases, you can withdraw the funds after residency is granted.
8. What taxes will I pay in Paraguay?
Paraguay follows a territorial tax system. This means only income earned within Paraguay is taxable. Foreign income, such as online business earnings or overseas investments, is not taxed.
Conclusion
Paraguay’s residency program is one of the most accessible in the world, simple, affordable, and with a clear path to permanent residency and citizenship. Whether you’re looking for a tax-friendly base, a retirement haven, or simply a global backup plan, Paraguay offers a solution that doesn’t require breaking the bank.
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