The law and the process of becoming a resident in Paraguay have already changed (18.10.2022), instead of February 2023. There is good news, as the advantages remain the same.
What happened to the Paraguay Permanent Residency Program?
Let’s summarize this answer, as it is the most important for you and then let’s see the details. When you apply for settlement in Paraguay, you will become a temporary resident instead of a permanent resident. After two years of temporary residency, you can apply for permanent resident status or can extend your temporary resident status in Paraguay for another two years.
Highlights of the amended Paraguay Residency Program 2022
- It begins with two years of temporary residency; you can become a permanent resident after two years.
- If you wish to prove your solvency through a deposit (instead of a university degree, pension, etc.), there is no deposit to leave in the bank for the temporary residency. You must DECLARE that you have a profession/money to survive in Paraguay but must not prove it for the temporary resident status.
- Temporary residents also have an ID card and have the same rights regarding everyday life as permanent residents.
Nothing changes regarding tax residency, tax number, or international tax compliance issues.
The official fee for the temporary residence permit is the same as that for the permanent residence permit, 2452.225 guaranís.
Are there any adverse effects of the immigration law amendment in Paraguay?
- Instead of the two processes (permanent residency/ID card), there will be four processes until you become a permanent resident (Temporary residency/ID card + Permanent residency/ID card).
- The renewed law does not affect permanent residents and those applicants who have already submitted their documents for the permanent residence permit.
- Interestingly, permanent residents of Mercosur countries can easier settle in the other Mercosur Member States. It does not apply to temporary residents. (this issue became more than miscellaneous because the relevant official information disappeared. I will research this solution and will write about it)
- The application fee increased to 2.452.225 Guaraníes.
Can you become a permanent resident in Paraguay instead of a temporary resident for two years?
The SUACE residency by investment program does not change at all. Investors will become permanent residents without spending two years as temporary residents. If you wish to move to Paraguay, this option is worth considering. If you plan to invest, register a company, and start a business, the SUACE residency by investment program is a great tool. You have to immigrate and register a company. The minimum investment amount is 70,000 USD, but you do not have to directly invest the amount or show that you have this amount in your bank account.
Please, note that the Paraguayan residency by investment program aims to maintain companies and create jobs. It means that you must spend the investment amount in ten years. You can start any business and pay this amount in ten years. If you bring two containers of anything, that can be enough (goods + shipping + customs fee), or if you create a restaurant, the venue’s rental fee will be more than 70k USD over ten years. And the cost is the same as when you become a temporary resident and register a unipersonal or another company type.
What happens to the deposit option during the Paraguayan residency process?
There was no deposit option. However, it was one of the options to prove your solvency but not an entire immigration stream. So, nothing changed for the permanent residency process in Paraguay. When you apply for permanent status, you can prove your solvency with the deposit, pension, university degree, etc.
However, there is no need to deposit during the temporary residency process. You must declare your profession. It means that after the temporary resident status, you will have to prove your solvency as before the law amendment of 2022. Please, take care of what you declare during the temporary residence process. Because after two or four years, you must justify this during the permanent residency process. For example, if you are a cook, you must declare and pay the deposit when applying for permanent status.
Proof of solvency with a university degree for the Paraguayan resident status
You do not have to show the Apostilled copy of your university degree during the initial phase to prove solvency. But you must declare that you have the degree. However, you will need the Apostilled degree during the permanent residency process.
One more hint: There was an exciting option to prove your solvency in the previous permanent residency process. You could qualify by renting or purchasing more than ten hectares of land. This option vanished from the official requirements even before the law amendment.
Which documents do you need for the temporary residency process in Paraguay?
Regarding the necessary documents, nothing changed. We obtain several papers for you, and you must bring the following:
- original birth certificate (Apostilled)
- original and clean police certificate (Apostilled)
- certificate of marriage or divorce, if it applies (Apostilled)
- your passport.
Do you have questions about the new and amended Paraguay Temporary Residence process? Contact us for our guides, or set up a consultation with our experts.