Our valued sponsor

Question I've a Paraguayan residency - What're my real advantages now ?

Lol crypto7figs :-D
I'll be curious to hear some success stories of this kind as well.

I'm randomly spending a month or so to Paraguay so far. I'll be back there in the next few months (again) to look for the right property to use for my residency considering last time I saw many great ones but I didn't have enough available cash. Once done that and once I'll have gotten my passport (a long fight, hopefully I'll have it within the end of 2023), I'll look for new ways to take advantage of this residency.
It's a great place if you agree to pay 10% in taxes (nothing wrong about this) but probably I was looking for a tax free solution at least for part of the income generated abroad. Still working on this ...
 
I've been told by a local tax accountant that as part of the compliance process for any incoming payment, banks asks for an invoice you've issued for such funds and in such way you'll be indirectly forced to declare them.
You may probably issue a fake invoice, I don't know but for sure I don't want to have any issues not knowing what will happen and with the risk to loose the right to get a passport so the best thing might be to open my account abroad.
For now I'm still using my old EU address for my accounts outside the country which's not a good strategy for sure but this will change once I'll have my own property and permanent address.
 
I've been told by a local tax accountant that as part of the compliance process for any incoming payment, banks asks for an invoice you've issued for such funds and in such way you'll be indirectly forced to declare them.
You may probably issue a fake invoice, I don't know but for sure I don't want to have any issues not knowing what will happen and with the risk to loose the right to get a passport so the best thing might be to open my account abroad.
For now I'm still using my old EU address for my accounts outside the country which's not a good strategy for sure but this will change once I'll have my own property and permanent address.

Paraguayan banks are trash anyway. Maybe consider a visit to the US and open there.

Wells Fargo is very easy, although quality is kinda meh.
Chase is very nice imo. BoA too if you manage to get one.

Depending on your volume you might even make do with some EMI
 
I am planing to go to Paraguay soon and I've spoken with locals (I speak spanish) and accountants. To put things short, if you don't bring income you will not be taxed on that. Also, if you really want to bring income to banks, you don't need to pay the 10% IVA tax, but you need to pay IRP (annual personal tax) at the end of the year. HOWEVER, the IRP is calculated based on your NET income. Basically if you only bring to paraguay what are you going to pay, as long as you spend everything (and has the receipts for that), you will barely pay any tax (8% on net income below $7k). However I understand how this may be a problem if you want to bring money in order to invest large sums here.

P.S. There are no CFC rules in Paraguay. So you can use an offshore to receive payments and pay yourself dividends without any tax if you want an extra layer of protection for the IVA (although you probably can't avoid the IRP if you bring income, even though it's a tax free dividends, because banks expect you to issue an invoice for payments). It's probably the weirdest system in the planet (a literal accountant told me I can invoice just the income that I need to spend). But there is no place more low-profile and that can be in practice 0 tax if you know how to play the system.

Edit: One curious thing you can think about it is that because Paraguay is Non-CRS and Non-Fatca, most people see Paraguay as a way to protect themselves from their local authorities, however if you become a resident there you should start being careful of the laws of the country, and the fact that they don't share info is a two-way street, where there is no way for Paraguay to see what you have abroad. Suddenly, a country like US or Germany become an offshore paradise from the POV of Paraguay.
 
Last edited:
Well, I mean, why put money into the country? Why not just get the tax and open a company and bank account elsewhere?
Yes. basically if you dont want to bring money you will not pay any tax in practice. I think the only reason to bring a substantial amount of money is if you need to hide something from CRS/FATCA or if you really want to establish a life there and buy properties and stuff. Many people invest in lands / farming sector for example.
 

Latest Threads