Tax Residency in Paraguay for Digital Nomads: Is It Right for You?

27 Apr

If you’re a digital nomad looking to legally reduce your tax burden, Paraguay’s tax residency program is one of the most attractive in the world.

Why Paraguay Appeals to Nomads

• No tax on foreign-sourced income

• Straightforward residency and tax ID setup

• No obligation to stay full-time in the country

How to Get Tax Residency

1. Apply for permanent residency

2. Register for a RUC (tax ID number)

3. Maintain some economic presence (e.g., bank account, local payments)

Is There a Minimum Stay Requirement?

Not formally, but establishing a presence (utility bills, rent contracts) strengthens your case with tax authorities.

Benefits of Tax Residency

• Legal tax efficiency

• Easier banking and international transactions

• Access to low-cost services and a second home base

Manage your status with CitizenPY

CitizenPY helps you manage both residency and tax residency, with checklists, reminders, and expert insights in one place.

Nikolas Kraljevic

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