How to get a Paraguay Residency: A Perfect Setup for Digital Nomads

3rd October 2024

How to get a Paraguay Residency: A Perfect Setup for Digital Nomads

Paraguay is increasingly recognized as a top destination for those seeking a second residency, offering a straightforward process and significant financial benefits. However, before embarking on this journey, there are several important factors to consider.

As someone who has spent over four years as a digital nomad in Latin America, I’ve found Paraguay to be an ideal residency solution for perpetual travelers. In this article, I’ll guide you through the updated residency process, highlight the key advantages, and share insights from my own experience of securing Paraguayan residency in 2021.

For digital nomads like myself, Paraguay offers a unique setup. By combining Paraguay residency with a U.S. LLC, you can create a tax-efficient lifestyle that allows you to enjoy the freedom to explore other countries, both in South America and beyond. While Paraguay offers an appealing residency base, you don’t need to live there permanently to reap its benefits.

For a closer look at how I obtained my residency, watch my video, and if you have further questions, feel free to schedule a consultation with me.

Why Choose Paraguay for Residency?

Paraguay has rapidly become a popular option for expats and digital nomads alike. Its residency program is one of the most accessible in the world, with relatively low costs and a simplified application process. For those implementing flag theory or seeking a tax-optimized structure, Paraguay is a strategic choice. When paired with a U.S. LLC, Paraguay residency enables you to structure a tax-free lifestyle, allowing digital nomads to operate their businesses remotely while legally minimizing their tax liabilities.

Moreover, Paraguay’s residency allows you the flexibility to travel freely without needing to maintain permanent residence in the country. I’ve spent considerable time exploring various countries across South America, all while keeping my residency secure. For perpetual travelers, this offers unparalleled freedom, making Paraguay a prime option for those looking to establish a flexible base.

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My Journey to Paraguay Residency

Securing my Paraguay residency in 2021 provided invaluable flexibility. After living in Paraguay for over a year, I gained firsthand knowledge of the residency process, but what makes it particularly attractive to digital nomads is the freedom it provides to travel long-term. Since obtaining residency, I’ve journeyed across South America, driving my Paraguayan-registered Toyota Land Cruiser Prado and immersing myself in the Mercosur region.

The residency status in Paraguay ensures that I can maintain legal residency while traveling throughout the continent. This combination of freedom and flexibility is especially valuable for digital nomads who, like me, thrive on mobility while needing a secure base for tax and residency purposes.

Key Updates to the Residency Process

While the residency process remains accessible, there have been notable changes since I secured my residency. Most importantly, applicants must now first obtain a two-year temporary residency before they can apply for permanent residency. This modification requires careful planning, but the overall process is still straightforward for those well-prepared.

Certain former requirements, such as health check-ups and proof of academic degrees, have been eliminated. However, it’s important to note that all required documents must still be apostilled and presented on the day of your application.

Essential Documents

The documents required for your Paraguay residency application include:

Birth Certificate
Police Record
Marriage Certificate (if applicable)

These documents must be apostilled, which can be challenging depending on your home country’s procedures. It’s also essential that these documents are presented in their original form on the day of your application.

Overcoming Common Challenges

One of the main challenges applicants face is the apostille process. Depending on your country of origin, this can be a complex and time-consuming task. Additionally, Paraguay’s recent visa regulations add another layer of complexity. While a tourist visa suffices for residency applications, citizens from visa-free countries must now request a tourist visa upon entry. This new regulation has made it more difficult for some nationalities to enter Paraguay.

For digital nomads, however, these challenges are manageable and worth navigating for the long-term benefits. The ability to travel while holding Paraguayan residency ensures you won’t need to remain in the country, granting you the flexibility to explore other parts of South America or the world.

Application Process: A Step-by-Step Guide

Once you’ve entered Paraguay, plan to spend at least one week to complete the residency application process. Working with a residency facilitator is highly recommended, as they can assist with document translations and ensure all paperwork is correctly prepared. Typically, within two business days, you’ll be ready for your application appointment in Asunción, where you’ll visit multiple government offices.

By the end of your application day, you will receive a confirmation that allows you to remain in Paraguay while waiting for your residency card. This confirmation also permits you to leave the country and have your residency card mailed to you, should you need to travel in the interim.

Financial Considerations for Paraguay Residency

The total cost of securing residency in Paraguay generally ranges between $1,800 and $2,000 USD. This includes all fees and the services of a residency facilitator. In most cases, payments are made in cash (usually in $100 bills), but some facilitators may accept Bitcoin (BTC) as an alternative.

For digital nomads seeking to optimize their tax situation, this investment is well worth it. Pairing your Paraguay residency with a U.S. LLC not only simplifies your tax obligations but also allows you to continue traveling without the need to settle in any one country permanently.

Final Thoughts

Though obtaining residency in Paraguay has become slightly more complex in recent years, it remains one of the most advantageous options for expats and digital nomads alike. The combination of low costs, ease of application, and significant tax benefits—especially when integrated with a U.S. LLC—makes it a highly attractive solution for those seeking flexibility and freedom.

For those ready to embark on this journey, Paraguay provides an ideal base for long-term travelers who want the security of residency without being tied to a particular location. Whether you plan to stay in Paraguay or explore the many beautiful countries in South America, the opportunities are limitless.

If you have any questions or need guidance on the process, feel free to schedule a consultation with me to explore how Paraguay residency can work for you.

Paul Trausner
Lived on 4 continents and visited 60+ countries
Specializes in expat consultation for Latin America,
including residency coaching, U.S. LLC formation, and tax optimization strategies