Paraguay - tax residency.

[brave83]

Hello

I would like to share my experience with my trip to Paraguay. The reason for the trip was to become a tax resident in that country. I am a sports trader using exchange bookmakers and an EU citizen. It is not easy to declare all arbitrage bets/trades, which is why I decided to look into Paraguay as an option.

The process required a single visit of about three days. I brought an apostilled birth certificate and a criminal record certificate. After that, most things were handled locally through assistance on the ground. From what I saw, trying to go through the process without help can be difficult, I witnessed several people at the immigration office facing issues when doing it alone.

The full process takes approximately 3 4 months. In my case, I expect to receive a Paraguayan tax number (RUC) and identity card (Cedula). This setup allows me to declare my income through the Paraguayan tax office and pay 0% income tax, based on their current system.

Next year, I’ll be able to apply for a tax residency certificate, which can be used to demonstrate tax residency to authorities in my home country. Paraguay can be an attractive option for remote workers, digital nomads, crypto traders, and others in e-services, especially since it doesn’t require full-time residency, unlike other jurisdictions such as the UAE.

 

[NewHorizonsParaguay]

Thank you for your trust. Hope to see you again soon in PY.

 

[luap]

What are the fees approximately? You have to go back for another visit when the card is ready?

 

[brave83]

No, you don't need to return. One visit is enough. After about two years you may need to return, but in my case, I left a Power of Attorney and was told the documents will be sent via courier when ready.

​

 

[Nigital Domad]

?

 

[brave83]

Yes, you need a physical apostilled birth certificate and criminal record. Before the trip, I sent digital copies for review to confirm they were acceptable. I didn’t have to translate the documents myself, as local sworn translators handled that on-site, which avoided additional apostille fees.

 

[Armani]

Do you need an apartment to rent/own to be legit right?

 

[brave83]

No, I didn’t rent or buy any property. I used a local address that was part of the support I received. Others can probably provide further clarification on what’s required.

 

[NewHorizonsParaguay]

Do you need an apartment to rent/own to be legit right?

No, you don’t

 

[Frankie]

What are the fees approximately? You have to go back for another visit when the card is ready?

I join the question.

What are the fees?
How many days did you have to stay in Paraguay?
What bank accounts can you open with PY residency?

 

[brave83]

I stayed three days in Paraguay, which was enough to complete the necessary steps. I didn’t open a bank account, but I’ve heard it’s relatively easy to open one using local documentation. As for fees – it can vary depending on your nationality and specific needs. Best to check with someone who handles these procedures regularly.

 

[NewHorizonsParaguay]

@Frankie @luap

In general, the required stay is around three business days. Some banks accept residency documents for account opening purposes, but it depends on the bank and jurisdiction. Fees vary by citizenship, especially for those requiring visas. It's best to research what applies to your situation.

 

[daniels27]

@Frankie @luap

Prices vary a lot by citizenship.
Generally, you need to stay three business days.
Multiple international banks are accepting PY residents, and of course, local banks.

Which citizenships are the cheapest?

 

[NewHorizonsParaguay]

Which citizenships are the cheapest?

Generally, the citizenships that don’t need entry visa or are granted at the entry are the cheapest (EU, Ukraine, Russia, Georgia, UK, Canada, US, South Africa, Australia, New Zealand…)

 

[JustAnotherNomad]

Next year I can apply for a tax residency document which can be provided to tax authorities in my country of living.

Lol. Good luck with that. Can you do your sports betting from jail?

 

[Meta]

Lol. Good luck with that. Can you do your sports betting from jail?

Yep. Just wanted to comment on that. brave83, do you realize that it does not absolve you of your tax liabilities in the place where you live?

I mean it's a nice document set and I'm thinking of getting it for myself just in case. It would allow you to come live in calm Paraguay if there is a war in Europe, for example. It's possible to get tax declarations with all your income declared and nothing much taxed - very useful sometimes. I think it's perfect for digital nomads who don't have any other tax residency and just hop between countries every month or so. People can use these documents to open bank accounts. It can help you to deregister tax residency in your home country if you leave and local authorities need some proof that you became resident in other place.

It doesn't help with taxes if you live somewhere permanently though. Paraguay has less than ten double taxation treaties and even those are not useful in your case. If, say, you are French, living in Paris and just visited Paraguay for three days... From French law point of view nothing has changed at all, you still owe taxes just as before. Tread carefully. Cheers.

 

[NewHorizonsParaguay]

Valid points but I think you assume too much guys.
How do you know if he lives in one country sufficiently enough time (and has ties) to trigger there tax residency?
What if his former tax domicile country specifically ask for this paper, not caring about DTA, just need to have proof he is a tax resident somewhere ?

 

[JustAnotherNomad]

OP wrote "country of living".

 

[daniels27]

Valid points but I think you assume too much guys.

How about we just call it a day? I understand that there are people hiding somewhere. So far so good. But then just keep your mouth shut. And I do not see how that paper from Paraguay may eventually help. If they were to get some paper from a reputable jurisdiction and pay taxes there, it would be another thing. It is just outright tax evasion:

OP wrote "country of living".

What if his former tax domicile country specifically ask for this paper, not caring about DTA, just need to have proof he is a tax resident somewhere ?

Is there any reference to any country which specifically asks for such thing? We have discussed many here already, from France, Italy, Spain, Slovakia and all has been very vague. Which countries have ever asked for such thing?

 

[NewHorizonsParaguay]

How about we just call it a day? I understand that there are people hiding somewhere. So far so good. But then just keep your mouth shut. And I do not see how that paper from Paraguay may eventually help. If they were to get some paper from a reputable jurisdiction and pay taxes there, it would be another thing. It is just outright tax evasion:

I believe the original post may have been unclear in wording. In some cases, people obtain proof of residency because their former tax authorities request formal documentation. However, this depends heavily on individual circumstances and the legal requirements of the country in question.

Is there any reference to any country which specifically asks for such thing? We have discussed many here already, from France, Italy, Spain, Slovakia and all has been very vague. Which countries have ever asked for such thing?

Recently, a pretty popular thread started by a Belarusian guy asked Belarus to provide a tax certificate from somewhere (no DTA needed). I think he went with Vanatau or something like that. The paper from Paraguay would have served as well, tho.