How Paraguay Offers Tax-Free Residency for Global Earners

Paraguay’s residency is not just easy to obtain — it also comes with a major perk: no tax on foreign-sourced income. Here’s how that works.

What Is Tax-Free Residency?

If you are a resident in Paraguay but earn your income abroad, you are not taxed on that income by Paraguayan law.

Who Qualifies?

• Permanent residents

• Individuals registered for a RUC (tax ID)

• Residents with no Paraguay-source income

Benefits

• Legally reduce global tax obligations

• Set up international banking under a low-tax jurisdiction

• Ideal for digital nomads, crypto holders, and entrepreneurs

Important Notes

• You still must report income in other countries if you hold dual tax residency

• No wealth tax, inheritance tax, or capital gains tax on foreign assets

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