Residency in Paraguay 2025: Culture, Economy, and Opportunities

Paraguay Strategy
Sep 1
3 min read

Updated: Sep 27

Introduction: Why Residency in Paraguay is Attracting Foreigners in 2025

Paraguay may not be as well-known as its larger neighbors, but in 2025 it has became a hidden gem for relocation. The country offers:

A rich cultural identity with Guaraní and Spanish roots.
An affordable cost of living.
A simple and low tax system with a flat 10% income tax.
A straightforward residency process for foreigners.

For those seeking a new life abroad, residency in Paraguay combines opportunity, simplicity, and tradition.

Paraguay’s Culture: A Blend of Guaraní and Spanish Heritage

Language and Identity

Paraguay is officially bilingual: Spanish and Guaraní are both recognized. Everyday conversations often mix both languages, reflecting a unique cultural identity.

Lifestyle and Traditions

Hospitality: Paraguayans are warm and welcoming.
Family values: Social life revolves around family gatherings.
Pace of life: Slower and more relaxed than in New York or Berlin.

Food in Paraguay: What Defines Paraguayan Cuisine?

Tereré: The national drink, a refreshing cold yerba mate infusion.
Sopa Paraguaya: A cornbread with cheese and onions, despite the name.
Chipa: A cheese bread made from cassava flour, sold everywhere.
Asado: Barbecue, central to gatherings.
Cassava (mandioca): Served daily as a side dish.

Paraguayan food is hearty, simple, and rooted in indigenous and rural traditions.

Economy and Opportunities in Paraguay

The Tax Advantage

Paraguay has one of the simplest tax systems in Latin America:

Income tax: 10% flat.
VAT: 5% or 10%.

This makes it very attractive for entrepreneurs, freelancers, and investors.

Key Economic Sectors

Agriculture: Paraguay exports soy and beef globally.
Energy: Through Itaipú and Yacyretá, Paraguay is one of the largest exporters of renewable hydroelectric energy.
Services: Finance, logistics, and IT are growing steadily.

Why Foreigners See Opportunity

Low business costs.
Growing demand in tech and tourism.
Strategic location between Brazil and Argentina.
Space for remote workers thanks to affordable living and improving digital infrastructure.

Residency in Paraguay in 2025

Why Apply for Residency in Paraguay?

Residency grants foreigners:

The right to live and work legally.
A Cédula de Identidad Paraguay (ID card), necessary for banking, contracts, and property.
A pathway to permanent settlement.

Temporary Residency (Most Common)

Since the 2022 Migration Law, the standard route is to begin with Temporary Residency, valid for up to 2 years. It allows:

Legal work and study.
Access to a Cédula de Identidad Paraguay valid for the same period.
Eligibility to apply for Permanent Residency once the term ends.

Main requirements:

Valid passport.
Apostilled birth certificate.
Apostilled criminal record.

Permanent Residency

Obtained by changing status after completing temporary residency. It provides full settlement rights and longer-term stability.

Residency by Investment (SUACE)

For investors, residency can be linked to an approved investment project through the SUACE system. Minimum recommended investment: around USD 70,000.

FAQs

What is the official currency of Paraguay in 2025?

The Guaraní (PYG, ₲). Exchange rate: around ₲ 7,200 per USD.

What is the tax rate in Paraguay?

Paraguay has a flat 10% income tax and VAT of 5% or 10%.

How to obtain residency in Paraguay in 2025?

Most foreigners start with Temporary Residency (up to 2 years), then apply for Permanent Residency.

What is the Cédula de Identidad Paraguay?

It is Paraguay’s national ID card, granted after residency approval, required for banking, contracts, and legal life in the country.

What makes Paraguay attractive for foreigners?
Low taxes.
Affordable cost of living.
Growing economy.
Simple residency process.

Conclusion: Residency in Paraguay as a Gateway to Opportunity

Paraguay in 2025 offers more than just low taxes: it’s a country with deep cultural roots, a warm society, and an accessible residency system. For foreigners considering relocation, residency in Paraguay provides stability, opportunity, and a welcoming environment to build a new life.

👉 If you’re planning to move, our agency can help with residency applications, Cédula processing, and relocation support. Contact us today to begin your journey in Paraguay.