Paraguay Tax Residency Requirements: What You Need to Know in 2025

Becoming a tax resident in Paraguay can dramatically reduce your global tax burden. But to qualify for tax residency status officially, you’ll need more than just a residency card. Here’s what you must have in place.

What Is Tax Residency in Paraguay?

Being a tax resident means your main fiscal home is in Paraguay, and your taxes (if any) are paid there. The key benefit: foreign income is not subject to Paraguayan taxes.

Requirements to Be Recognized as a Tax Resident

• Permanent Residency Status

• RUC (Tax ID Registration) through the Paraguayan tax authority (SET)

• Proof of Local Economic Activity or Presence, such as:

• Utility bills in your name

• Bank account in Paraguay

• Local business, rent, or employment

Can You Be a Tax Resident Without Living Full-Time?

Yes — many nomads maintain tax residency with minimal physical presence. But it helps to have financial or business ties.

How to Prove Tax Residency to Other Countries

• Obtain a Tax Residency Certificate (TRC)

• Show RUC registration and utility bills

• Use a local accountant to maintain simple compliance

Keen to know more? Download CitizenPY – your personal assistant for everything related to Paraguayan citizenship.