The EU, the UK and the US are closing their citizenship and residency by investment programs. Paraguay and Panama remain the best and most affordable jurisdictions to settle, pay your taxes, or have a secure residence permit while you travel around the world. 

Paraguay became the best and most affordable white-listed, low tax jurisdiction for freelancers, online entrepreneurs, businesspeople and digital nomads in 2022. 

If you want to live in Paraguay, the charming and beautiful country has so many to offer and attract. The quality of life is high enough in Paraguay. Several expats consider it the last free country because there are not many countries left where you can live a calm life without political pressure. 

Suppose you need a secure and tax-effective second residence. In that case, you can become a tax neutral person, and it is simple to maintain your resident status. 

If you want to know everything about the process of becoming a permanent Resident of Paraguay, click here and read our detailed guide.

How is living in Paraguay in 2022?

If you are a foreigner with a small amount of money or professional knowledge, you can succeed in Paraguay. The country is more than affordable; it’s dirt cheap. Paraguay is one of those last places where you can start something without being rich. You can find many projects and jobs if you are skilled or have a little patience to understand the local investment environment and wait for the best deal. 

How did Paraguay become a white-listed and internationally tax compliant country?

Paraguay is not an offshore financial haven. The South-American democracy always respected the international regulations of tax information exchange. However, the foreign-sourced and not remitted income is tax-exempt. The Paraguayan banking system must adhere to strict rules, and the tax on local (onshore) income is only 10%. If you pay your taxes from income of local sources (0 if you do not have income sourced in Paraguay) and do not become a tax resident elsewhere and maintain your tax resident status in Paraguay, you will be tax compliant and transparent resident. You can sleep very well, and there is almost no bureaucracy attached to your activities. In Paraguay, you do not have to report your foreign-sourced and not remitted income. 

According to the decision of the EU Parliament, all member states must close their golden visa and golden passport (residency by investment and citizenship by investment programs). The UK finished its Tier1 residency by investment program. The US force all nations to disclose the names of those citizens, who got their citizenship through investment, so those citizens become second-grade passport holders. They will need a visa even when the citizens of that country have a visa waiver agreement with the US.

Paraguay Permanent Residency is not a Digital Nomad Visa program

People frequently misunderstand digital nomad visas and confuse thises structures with permanent residence status. One of the most important features of digital nomad visas is that they are temporary solutions. Most digital nomad visa programs allow the holder to spend half a year or a maximum of one year without paying tax in the host countries. Permanent residency is permanent. A permanent residency is a structure for the long term. Interestingly, in 2022 it became clear that the Paraguay permanent residency is cheaper than most temporary digital nomad visas.

How much is the cost of living in Paraguay in 2022? 

The estimated cost of living for a family of four in Asuncion, the capital, is 1,412 euros (1528 USD). For a single person, the monthly cost of living is only 298 euros (430 USD), according to Numbeo. 

Rental costs are also inexpensive; you can have a three-bedroom flat in the capital’s city centre for less than 500 EUR (540 USD). 

What can you do as a resident of Paraguay in 2022?

If you wish to live in Paraguay, the country is flourishing. The stable political and economic environment attracts a massive capital inflow. On the other hand, Paraguay is still one of the safest South American countries.  

Paraguay is one of those rare places where you can start something without colossal capital, what you need in the US or EU. The jobs are not well paid. However, many expats restart their careers as English teachers in Paraguay. 

International business people, freelancers and digital nomads have become permanent residents in Paraguay. Still, they can live and work anywhere until they do not become tax residents of other countries. 

Is Paraguay a safe haven in 2022?

Nothing arrives in Paraguay from the political turmoils of 2022. Nothing has changed on the river Paraguay. Because nature is beautiful, the birds sing. Paraguay is a laidback country far from everything. Your money is safe in Paraguay; your property is safe, the schools are good, and the private healthcare system is excellent. 

Entry requirements in Paraguay during Covid 19

(from April 2022)

Citizens, residents and foreign but not residents can enter Paraguay without a quarantine with a vaccination certificate.

People who are not vaccinated must arrive with a valid PCR test. Yes, it means that you can apply for the resident status if you are vaccinated or you are not vaccinated. 

Necessary documents Paraguay Permanent Residency process 2022

There are documents we must obtain in Paraguay. But you must bring the following documents:

  • birth certificate
  • clean police certificate
  • certificate of marriage or divorce (if it applies!)

All the necessary documents need an Apostille stamp or validation from the Paraguayan Embassy. Moreover, you must officially translate all the documents into Spanish. 

Do you want to become a resident of Paraguay in 2022?

Schedule a consultation here or send an email to