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Tax Strategy
8 min read
Paraguay Tax Benefits: Complete Guide for 2024
Discover how Paraguay's tax system offers unprecedented benefits for digital entrepreneurs and remote professionals, including zero tax on foreign-source income and minimal presence requirements.
Key Benefits of Paraguay's Tax System
- 0% tax on foreign-source income
- No wealth tax
- No presence requirement (Some days recommended)
- Fast processing time (35-55 days)
- Low setup and maintenance costs
Understanding Foreign Income Exemption
One of Paraguay's most attractive features is its territorial tax system. Under this system, only income generated within Paraguay is subject to taxation. This means that any income earned from sources outside Paraguay - whether through digital businesses, investments, or remote work - is completely exempt from Paraguayan taxation.
Residency Requirements
Key Requirements
- Valid passport
- Clean criminal record
- Proof of income or sufficient funds
- Brief visit to Paraguay for documentation
- Minimal annual presence requirement (1 day)
Application Process
Timeline
- Document preparation: 1-2 weeks
- Application submission: 1 day
- Processing period: 30-45 days
Required Documents
- Valid passport
- Birth certificate
- Police clearance
Path to Citizenship
Benefits of Paraguayan Citizenship
- Visa-free travel to more countries
- Full political rights
- Ability to pass citizenship to children