Paraguay's residency path has two real stages under Law 6984/2022: a 2-year temporary permit first, then a conversion to permanent. No income floor for the first step, a 10% territorial tax on Paraguay-source income only. Here's how it actually works.
No monthly income floor — Paraguay's 2-year temporary residency requires basic financial solvency but sets no minimum threshold.
Unlike most countries, Paraguay does not publish a minimum income figure for the temporary-residency entry step. You need to demonstrate lawful means of support — a plausible livelihood — but there is no published floor in USD or guaraní. This is the reason Paraguay attracts applicants who would struggle to qualify elsewhere. Note: when you later convert to permanent residency (months 21–24), you will need to document a recognised solvency category.
The standard path is two stages: 2-year temporary residency first, then conversion to permanent in months 21–24.
Since October 2022, there is no direct/instant permanent residency for standard applicants. The path:
| Stage | When | Key requirement |
|---|---|---|
| Temporary residency | Day 1 | Clean record + basic solvency + in-person application |
| Convert to permanent | Months 21–24 | Documented solvency category (profession, RUC, contract, or company) |
| Citizenship | After 3 years permanent | Constitution Art. 148 + court naturalization process |
Most applicants with a clean record and basic financial means qualify for the temporary phase — the blockers are usually the criminal record and the willingness to apply in person.
Direct permanent residency (skipping the 2-year temporary phase) is available only to SUACE investors (~USD 70,000 in business capital), immediate family of Paraguayan nationals, and repatriated nationals.
Paraguay taxes only Paraguay-source income at a flat 10% — foreign income is untaxed, making it a popular tax-residency base for location-independent earners.
| Rule | Detail |
|---|---|
| Tax base | Paraguay-sourced income only (territorial system) |
| Rate on domestic income | 10% flat (Law 6380/2019) |
| Foreign-sourced income | 0% — not taxable in Paraguay |
| Certificate | Issued by DNIT (SET) once tax residency is established |
Nomads and remote workers whose clients and employers are outside Paraguay often owe nothing to Paraguayan tax authorities on that income. Confirm the interaction with your home-country tax obligations with a qualified tax adviser before acting on this.
At least 5 years minimum from starting the residency path, plus 1–2 years for the court naturalization process — around 6–7 years in practice.
The timeline under Constitution Article 148: 3 years of permanent residency required before applying for citizenship. Combined with the mandatory 2-year temporary phase, the minimum from day one of application is 5 years, before the court process begins. SUACE investors who obtain direct permanent residency still need 3 years permanent before naturalizing.
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