Paraguay residency: the part the sales pitch leaves out

Search for Paraguayan tax residency and you will find a great deal of content, much of it well-argued, explaining that the widely repeated "120 days a year" rule is a misreading. The argument is that Article 152 of Law 125/1991 concerns domicile, a legal address, not tax residency, and that the resolution actually governing the tax residency certificate sets no minimum stay. On Paraguayan law, that reading is defensible. We think it is broadly correct.

Notice, though, what that argument is used to sell: the conclusion that you need barely set foot in Paraguay to become its tax resident.

That conclusion is only safe if Paraguay is the only tax authority with an opinion about you. It rarely is. Nearly every departure country decides residency on facts: available housing, family, centre of economic interests, habitual abode, day counts. Against those, a certificate from a jurisdiction where you spent three weeks is weak evidence. It is not nothing. It is not a shield either.

What “residency” in Paraguay actually consists of

Marketing efforts by local consultants typically bundle the residency permit, the identity card, the tax registration and the tax residency certificate together under the single term "residency", as if it were one thing you buy once. It is not one thing. It is four separate Paraguayan documents, plus one decision that Paraguay has no power to make. Each of the four Paraguayan documents has its own requirements, its own institution and its own waiting time. Getting one does not automatically get you the next. You have to apply again, and prove something different each time.

1. Radicación: the residency permit itself. Permission to live in Paraguay, granted by the Dirección Nacional de Migraciones (DNM), the national migration authority. Approval produces a certificado or carné de radicación. That document, not the identity card, is your legal status to reside in the country. And it is only that: a migration permission. It has nothing to do with tax. Not Paraguayan tax, and not the tax of the country you left. Holding it does not make you a Paraguayan taxpayer, and on its own it changes nothing about what your former tax authority thinks of you.

   To obtain the residency permit you need documentation, physical presence, time and money. The documentation requirements are set out in Article 50 of Ley 6984/22, and there are twelve of them. Some of these documents must be obtained in your home country before you travel; the rest can only be obtained once you are physically in Paraguay. Roughly half come from your home country: a valid passport or identity document, a consular visa where one is required, a birth certificate, a civil status certificate, and a national or federal criminal record certificate from your country of origin or wherever you have lived for the past three years. The remainder can only be obtained once you are in Paraguay: proof of your entry to the country, an INTERPOL certificate, a foreigners' record certificate from the National Police's Departamento de Informática, and two sworn declarations made before the DNM: one undertaking to respect the Constitution and the laws, the other stating the profession or activity you intend to pursue and the address you are fixing in the country. Foreign documents must be apostilled or legalised, copied by a Paraguayan notary, and translated into Spanish, preferably by a translator officially registered in Paraguay, because translations from unregistered translators are more likely to be rejected, which costs you time. Article 50 also lets the DNM waive part of the list by reasoned resolution, which is one reason published checklists differ from each other. We keep a current step-by-step document list covering what to obtain before you fly and what has to wait until you land.

2. Cédula de identidad: the national identity card. Used for banking, company formation and essentially every administrative step. This is a separate application to a separate institution, the Departamento de Identificaciones of the National Police rather than the DNM, and it asks for different things: your radicación certificate, an INTERPOL records check, and a Certificado de Vida y Residencia, a certificate of life and residence issued by the police station for the district where you live, confirming that you genuinely reside at a stated Paraguayan address. The Certificado de Vida y Residencia is where the "you never need to be there" pitch meets its first real obstacle. To obtain the Certificado de Vida y Residencia, somebody at your local police station has to attest that you genuinely live at the address you have given. It is a small check, but it is the only step in the entire Paraguayan process that asks whether you are actually in the country, rather than simply asking for paperwork. For a temporary resident, the cédula expires when the residency does.

3. RUC (Registro Único del Contribuyente): the taxpayer registration number. Issued by the Dirección Nacional de Ingresos Tributarios (DNIT), the tax and customs authority created in 2023 to replace the former SET. Registration is what makes you a Paraguayan tax resident in practice; there is no separate presence test to pass here. But it is a live obligation rather than a one-off: the RUC must be kept active through regular filings, including nil returns for months in which you have no Paraguayan activity at all. Let it lapse and the tax residency underneath it lapses with it.

4. Certificado de Residencia Fiscal: the tax residency certificate. Issued by DNIT on request, confirming that Paraguay treats you as its tax resident. It is not automatic and not permanent: it requires an active RUC and a clean compliance record, and it is issued for a defined period rather than for life. This is the furthest the Paraguayan administrative process can take you: the final step available, and the end of what any Paraguayan provider can deliver. It is also the only one of the four documents that your former tax authority has any interest in at all; the radicación, the cédula and the RUC mean essentially nothing to them. Yet local consultants frequently do not focus on this certificate, and market the residency permit instead, because the residency permit is what they are engaged to obtain. Note also that even this certificate is nowhere near sufficient on its own to end your former country's claim on you.

5. Your former country accepting that you have left. This is not a document at all, and no Paraguayan authority issues it. It is a conclusion reached by the tax office of the country you left, under that country's own rules. No lawyer, consultant or government office in Asunción can obtain it, accelerate it or guarantee it. We cover how that conclusion actually gets reached, and what typically stands in its way, in a companion piece on cutting ties with the country you left.

Paraguay controls the first four (the radicación, the cédula, the RUC and the Certificado de Residencia Fiscal), and if you follow the procedure it issues all four without much difficulty. But they are a chain, not a package: four documents from three institutions, each one required before you can apply for the next. You cannot start the cédula until the radicación is approved. You cannot register for a RUC until you hold the cédula. You cannot request the Certificado de Residencia Fiscal until the RUC is active and current. This is why a single quoted timeline for "residency" misleads even when nobody intends it to. When a provider says ninety days, that figure almost always refers to the DNM's approval of the radicación alone (the first link in the chain), and not to the cédula, the RUC or the certificate that must follow it.

The fifth item on the list above is not a link in that chain at all. Whether your former country accepts that you have left is decided in that country, under its rules, on evidence assembled years after you go. And of the five items, it is the only one that determines what tax you actually pay.

Without a tax treaty, there is no automatic tie-breaker

This is the structural point that almost never appears in the sales material, and it is the most important one on this page.

Where two countries both claim you as a tax resident, a double tax treaty settles the argument. It provides a tie-breaker: an agreed sequence of tests (permanent home, centre of vital interests, habitual abode, nationality) that assigns you to one country and obliges the other to step back. It is a mechanism, and it works whether or not either tax office likes the result. We explain how that mechanism actually works, and how relief is claimed, in a separate article.

Take the treaty away and no such mechanism exists. Nothing obliges your former tax office to accept Paraguay's view of you. Nothing forces the two authorities to reach an agreed answer. You are left arguing your case under your old country's domestic rules, in front of the people who wrote them, and the outcome turns entirely on facts: where your home is, where your family lives, where you actually spend your time, where your income is earned and managed. A Paraguayan certificate is one piece of evidence in that argument. It is not the argument.

Paraguay's treaty network is small. Taking DNIT's own list of international conventions together with the ratification records of the other states, comprehensive double taxation agreements are in force with:

• Chile
• Spain (in force since 14 October 2024)
• Qatar
• Taiwan
• United Arab Emirates
• Uruguay

That is the entire list. A renegotiated agreement with Chile was signed in Asunción in July 2026 but is not yet in force.

If you go to DNIT's page of international conventions to check this for yourself, three things will confuse you, so they are worth explaining in advance.

Taiwan is listed as "China". The relevant instrument is Ley 3972/10, which approves the convention between Paraguay and the República de China. That is the Republic of China, meaning Taiwan, with which Paraguay maintains diplomatic relations. It is not an agreement with the People's Republic of China.

Spain is not on the page at all. The Spanish convention was signed in Santo Domingo on 25 March 2023 and entered into force on 14 October 2024, which is stated in Spain's own official gazette rather than on DNIT's list. If you rely on DNIT's page alone you will conclude that no Spanish treaty exists, and you will be a year and a half out of date.

Germany and Belgium appear, but not as general tax treaties. The German instrument, Ley 1.087/84, is titled as a convention to avoid double taxation on income from the operation of international air transport lines, and nothing wider. Ley 1.105/97 covers international air, river and land transport. The Belgian instrument, Ley 1.236/87, is listed without any subject matter at all, and Belgium does not appear among Paraguay's comprehensive agreements in independent surveys of the treaty network. None of these gives an individual a residence tie-breaker. For someone leaving Germany, Belgium, the Netherlands, the Nordics, the United Kingdom, the United States, Canada or Australia, there is no tie-breaker available.

Counter-intuitively, the absence of a treaty is not automatically a disadvantage. With a genuinely clean break it can even simplify matters, because there is no treaty residence article for your former country to litigate. But it does mean the entire weight falls on the facts of your departure, and those facts are judged by rules that differ enormously from one country to the next.

Your old country's rules decide what you pay, not only Paraguay's

There is no general answer to the question "what does it take to stop being a tax resident of the country I am leaving?" There is only your own country's answer. Six questions determine most of the outcome, and every one of them is answered differently across Europe and North America. None of them can be answered from Asunción, which is why we work with vetted tax experts in the countries our clients typically leave: people who deal with that specific authority as their day-to-day practice.

Will your old country still tax your worldwide income, and for how long? The date your liability actually ends is not always the date you get on the plane. Some countries stop taxing your worldwide income from the day you leave. Others treat you as a full resident for the whole of the tax year in which you leave, so income earned months after departure still falls into the old net. Others will split the year in two and tax you as a resident only up to your departure date, but only if you satisfy specific conditions first.

Then there are the countries whose claim outlasts your departure by years. Spain continues to tax the worldwide income of someone who moves to a jurisdiction on its tax haven list for the year of the move and the four years following it. Leaving does not stop the clock, it starts it. Several countries operate presumptions of continued residence for a set number of years where the destination is low-tax, placing the burden on you to disprove them.

And in one case the claim never expires at all. The United States taxes its citizens and green card holders on worldwide income for life, wherever they live, regardless of how many days they spend there or which other country issues them a residency. For an American, a Paraguayan cédula and a Paraguayan tax residency certificate change nothing about the obligation to file and pay in the United States; that obligation ends only with formal expatriation, which has its own exit tax regime attached. Any pitch suggesting otherwise to a US person is simply false.

Which of these situations applies to you changes the bill enormously. Establish it before the move, not after.

Is there an exit tax? Many countries treat emigration as if you had sold your assets on the way out (usually shares above a certain ownership threshold) and tax the gain even though nothing has been sold and no money has come in. The European Union's own 2026 report on wealth taxation counts eight member states with an explicit individual exit tax: Austria, Denmark, France, Germany, the Netherlands, Poland, Spain and Sweden. Norway operates one outside the EU and removed its five-year deferral option in 2024. Belgium introduced a capital gains regime with an exit component in January 2026. Canada and Australia have taxed deemed disposals on departure for years. The Canadian rule is unusually broad: it applies to an ordinary investment portfolio, not only to large shareholdings in a company, so you do not need to own a business to be caught by it. Different sources count these countries differently, particularly Sweden and Finland. That is because their rules do not charge tax at the moment you leave; instead they reclaim tax later, if you sell the assets within a set number of years after departure. The effect is similar, but the timing is not. Denmark, Sweden and Finland specifically are covered in more detail in our comparison of Nordic exit taxes.

If you hold a meaningful stake in a company, this is frequently the largest single tax bill of the entire move, larger than anything Paraguay saves you in the first several years. And it is triggered by the act of leaving. Once you have gone, the event has happened and the options for reducing it have closed. It has to be dealt with before departure, not afterwards.

Can your old country keep taxing you after you have left? Several can, and this is the rule that catches people who believed the matter was closed.

Germany is the clearest case. Under section 2 of the Außensteuergesetz, a German citizen who was fully liable to German tax for at least five of the ten years before leaving, who moves to a low-tax country, and who keeps significant economic interests in Germany, remains liable to German tax on non-foreign income for up to ten years after departure. A country counts as low-tax where the income tax on a notional taxable income of €77,000 is more than a third below the German level, a test Paraguay's 0% treatment of foreign income meets without difficulty. Note also that this is separate from Germany's exit tax under section 6, which applies to holdings of 1% or more; the two can both apply to the same person.

Sweden works differently but reaches a similar place. A Swedish citizen, or a foreigner who lived in Sweden for at least ten years, is treated as remaining resident until they can prove that all substantial ties have been broken. Only after five years does the burden of proof reverse, so that the tax agency must show ties still exist rather than the taxpayer showing they do not. Finland applies a comparable presumption for its own citizens for three years after departure. The United Kingdom's temporary non-residence rules tax certain income and gains realised while abroad if you return within five years. Spain applies continued worldwide taxation for several years to people moving to jurisdictions on its list of tax havens.

The pattern is consistent: these provisions were written precisely to catch moves to low-tax jurisdictions, which is exactly what a move to Paraguay is. Whether your country operates such a rule, and whether Paraguay falls inside its definition, is a question to answer before you move.

What evidence will your old tax office expect, and when must it exist? Different countries weigh different facts, and each has a factor it treats as close to decisive.

Denmark looks hardest at housing: keeping a home available to you in Denmark will generally keep you fully liable, so disposing of it properly and provably can matter more than counting days. Sweden's väsentlig anknytning test treats an available permanent home as the strongest single factor, followed by a spouse or minor children remaining behind, children in Swedish schools, and Swedish company directorships or board seats. Deregistering from the population register achieves nothing on its own. Germany looks to whether you have kept a residence or habitual abode. Others focus on where your family lives or where your economic interests sit.

What they have in common is that the evidence has to exist at the time, not be assembled later. A tenancy ended, a home sold, a school enrolment abroad, a utility account opened, a lease signed: each dated when it happened. Reconstructing all this three years later, during an audit, is a much weaker position, and it is the position most people find themselves in, because nobody told them at the time that they were building a case.

What do you actually have to file, and when? Leaving is usually a procedure, not just a decision, and each step has a deadline. Depending on the country you may need to formally deregister from a population or residents' register, file a final or split-year tax return, and notify the tax authority of your departure and your new address. If an exit tax applies and you want to defer paying it, there is more: the Netherlands, for example, issues a protective assessment that sits over you until the shares are actually sold. Deferrals often carry conditions: reporting each year while the deferral runs, and in some cases providing security or a bank guarantee. These conditions are real. Missing one can cancel a deferral you were entitled to and make the whole amount payable at once.

What does a mistake cost? This varies more than anything else, and the range is wide. At the mild end, the authority reassesses you and adds interest. In the middle, penalty surcharges are applied to the underpaid tax. At the severe end, if the authority concludes that you knew your position was wrong and claimed it anyway, the case can become a criminal one rather than a civil one.

That asymmetry is the practical argument for getting this right in advance. Proper advice costs a small fraction of what it costs to fight a reassessment covering several years, and very much less than what it costs if penalties are added on top.

If you already own a company, that is a separate challenge to solve

The first risk runs in the direction people rarely expect. If your departure country concludes that you never properly left, its controlled foreign company (CFC) rules may treat your company's profits as your own personal income, taxable in the year the company earns them, even if the company never paid you anything. A structure built on the assumption that you are a Paraguayan tax resident produces significantly worse outcomes than doing nothing at all if that assumption turns out to be wrong.

The reverse risk is that, in some jurisdictions, a company that ceases to be tax resident triggers its own corporate exit charge on unrealised gains, entirely separate from any personal exit tax you pay. This can happen without anyone deciding to move the company, because moving yourself can move it for you. A company is generally tax resident both where it is incorporated and where it is effectively managed (Place of Effective Management, POEM). If you are the person who directs it, and you are now in Asunción, the company may have acquired a new residence without a single form being filed, or become resident in two places at once with no treaty to determine which one wins.

Beyond those two, there are further layers. Whether your activity creates a permanent establishment (PE) somewhere, and where. Whether a US LLC (a Wyoming or Delaware LLC, for instance, which is what most people in this position hold) is treated as transparent or opaque by your departure country, and whether that mismatch triggers anti-hybrid rules. How dividends are withheld, and where. None of this is exotic. It is the ordinary consequence of a person and a company being in different countries, and it has to be worked through as part of the same exercise as the residency, not bolted on afterwards. Our comparison of US LLC, UK Ltd and Estonian OÜ structures covers the transparency question and the place-of-management risk in more detail.

Why a Paraguayan residency provider cannot answer the tax question

This is not an accusation of dishonesty against Paraguayan residency providers. Most of them are not misleading anyone deliberately. The reason their advice stops short of the tax question is structural: there is a mismatch between what a residency provider is paid to deliver and what a client relocating abroad actually needs.

A firm in Asunción is paid to walk your file through the DNM, then the National Police, then DNIT. It is often genuinely expert at that, and the coordination has real value: the procedure is specific, each office applies internal criteria that might not appear in any published guide, and knowing which queue to join in what order is worth paying for.

That firm, however, is paid for delivering the Paraguayan documents. Once you have the cédula in your hand, the job it was hired to do is finished. It has no standing in German, Danish or British tax law, no way of knowing what your former tax office will ask you to prove, and nothing at stake if the answer arrives two years later and goes against you. Their work stops at the border. Your consequences do not.

This is why "0% tax, guaranteed" is a claim no Paraguayan residency provider is in a position to make. It is a statement about your liability, and your liability is heavily determined by the country you left. Only someone who has looked at that country's rules (its exit tax, its trailing residence provisions, its evidence standards) can say anything honest about it.

Nomos Notabu works the other way round. We start in the country you are leaving, because that is where the tax outcome is decided: what its authority requires before it will stop taxing you and treating you as a resident, what evidence has to exist and by when, whether an exit charge applies and what it would cost, and whether a trailing rule will follow you. Our business model rests on local expertise on both ends of the move. We work with vetted local consultants in the countries our clients typically leave: Germany, the Nordics, the Netherlands, the United Kingdom. They handle these cases in their own jurisdictions every week. That matters because there is a difference between what the legislation says and how a given tax office actually applies it: which arguments it accepts, what documentation it asks for, where it tends to push back. That knowledge comes from running real cases in front of real officials.

Paraguay then enters the picture through a vetted Paraguayan partner: a genuine specialist in the local residency process, based in Asunción with boots on the ground, who deals with the DNM, the National Police and DNIT as routine work rather than as an occasional favour. Since much of the process has to be done in person (filing, biometrics, the police certificates), having someone physically there who knows which counter to go to, and in what order, is not a luxury.

Two things follow from that structure, and they are worth stating plainly. We do not sell Paraguayan residency as a product, so we have no reason to present it as the answer to a problem it does not solve. Nor do we hold or promote investments of our own (in property, in cryptocurrency, or in anything else) alongside the advice we give, so there is no second transaction we are steering you towards. Where a Paraguayan residency is not the right solution for a client, we are free to say so.

What the standard temporary residency process in Paraguay actually requires

For the sake of clarity: the residency permit is not the whole of what you need. It is one part of a longer process, and the practical demands of that process are worth setting out plainly, because they are what determine whether this is realistic for you.

In practice, obtaining and keeping Paraguayan residency involves:

• Gathering and apostilling documents in your country of origin, before you travel.
• Gathering, translating and notarially copying documents in Paraguay, which can only be done once you are there.
• Being physically present for two or three separate trips, spread across the process rather than in one visit.
• Some individual steps can be handled by a Paraguayan lawyer acting under a power of attorney, but this varies by step and by office, and it should be confirmed for your case rather than assumed.
• Being prepared to demonstrate genuine local presence for the Certificado de Vida y Residencia, where a police officer attests that you actually live at the address you have given.
• Filing monthly tax returns, including nil returns, to keep your RUC active and remain in good standing with DNIT.

What is genuinely absent from the standard route is more interesting than what is on it. There is no income test, no medical examination, no language requirement and no investment. There is also no bank deposit. That last point is worth stating explicitly, because for years Paraguay was sold on a single line: deposit around US$5,000 in a Paraguayan bank and receive permanent residency almost immediately. Ley 6984/22 removed both halves of that offer in October 2022. The deposit went, but so did the direct route to permanent status, which is why the two-year temporary stage now applies to almost everyone. A great deal of material written before that change is still online, and still being quoted. Taken together, what remains is a real advantage, and it survives being described accurately.

On timing: DNM approval alone commonly runs two to four months, and the cédula is a further application afterwards with its own document set and its own wait. Realistic estimates for the full sequence, from first document request to cédula in hand, cluster around four to eight months. The "90 days" figure in marketing generally describes the DNM step alone.

The investment route. There is one lawful way to skip the two-year temporary stage entirely. Under the Paraguay Investor Pass, introduced by Ministry of Industry and Commerce Resolution 0283/2026 and in force since 28 April 2026, qualifying investors receive direct permanent residency. It runs alongside the long-standing SUACE programme and currently offers several tracks: roughly US$70,000 committed to a Paraguayan business through SUACE, which also requires creating five local jobs; and higher thresholds, in the region of US$150,000 to US$200,000, for tourism, real estate or financial instrument investments, which carry no job creation requirement. These are genuine commercial commitments with reporting obligations attached, not a fee paid once. Anyone considering this route should confirm the current thresholds and conditions directly, as the framework is new and still settling.

From temporary to permanent. Temporary residency is not dormant. Article 55 allows the DNM to cancel it where the holder is absent for more than one year, and the conversion to permanent status must be filed within a specific window near the end of the two-year term. Miss that window and you are starting again, not appealing. The conversion itself has also become more demanding: DNM Resolution 407/2026 tightened the evidence of economic solvency required, so that documented real income and an active RUC now carry weight that formal qualifications alone do not. Permanent residency, once granted, is far more forgiving on absence: Article 54 sets the threshold at three years away without justification.

From permanent to citizenship. The three-year clock toward naturalisation begins when permanent residency is granted, which is covered in more detail below.

Financial reporting: Paraguay is joining the international exchange system

Paraguay is often marketed on the basis that it does not currently participate in the automatic exchange of financial account information, operating instead only on an exchange-on-request basis under the multilateral convention in force since 2022. As a description of the position today, that is accurate.

It is worth being precise about what it does and does not mean, because this is an area where imprecise marketing can lead people into serious trouble.

Your obligation to declare your income and your foreign accounts to your home tax authority does not depend on whether Paraguay reports anything. That duty arises under your own country's law and exists whether or not any information is exchanged. Automatic exchange is simply one of the ways an authority verifies what you have declared; it is not the source of the obligation. An arrangement that produces an acceptable result only for as long as nobody finds out is not tax planning. It is undeclared income, with the interest, penalties and, in serious cases, criminal exposure described earlier in this article. Nomos Notabu does not advise on that basis and will not assist with it.

The practical point is that the current position is also changing. The OECD's commitment table lists Paraguay among the jurisdictions undertaking their first automatic exchanges of financial account information by 2027. Domestically, DNIT Resolución General 47/2026, signed in March 2026, introduced detailed annual reporting obligations for crypto-asset transactions, with the first filings due in early 2027 for the 2026 fiscal year. Timetables of this kind sometimes slip, and it is fair to note that. The direction of travel does not.

So the sensible test is straightforward. Design the arrangement so that it produces the right outcome when every relevant authority can see it, because in the ordinary course, they eventually will. A structure that is correct under both countries' rules is unaffected by any of this. One that is not was never sound in the first place.

Citizenship: three years, and a judge

The passport is the other headline. Paraguay's constitution sets one of the shortest naturalisation periods in the hemisphere: three years of residence under Article 148, counted in practice from the grant of permanent residency, not from your first temporary radicación. Add the two-year temporary period and the court's own processing time, and the realistic total is five to six years.

More importantly, naturalisation is a judicial process before the Supreme Court, not an administrative renewal handled by the DNM. Applicants are assessed on Spanish or Guaraní, on basic civics, on conduct, and on arraigo, genuine roots in the country. Reporting through 2026 consistently describes the court examining migration records and refusing applicants who hold a card but do not live there.

Which exposes the contradiction at the centre of the standard pitch. The same package that tells you presence is unnecessary for tax purposes sells you a citizenship timeline that depends on presence being real. Both claims cannot be true at the same time.

A word on dual nationality. The Paraguayan constitution suggests that you give up your original citizenship when you naturalise, unless your country has a mutual agreement with Paraguay allowing you to keep both. Paraguay has such agreements with Spain and Italy. In practice, Paraguay does not check whether you have actually given up your old citizenship, and most countries do not take your citizenship away for swearing an oath to another state. So most people do keep both. But this works because of how the rules are applied, not because the law guarantees it, and that is an important difference.

Claim against reality

What Paraguay is genuinely good for

Paraguay offers a low-cost, low-friction, lawful residency with no income or investment requirement, which is rare anywhere in the world. Its territorial system means foreign income falls genuinely outside the scope of Paraguayan tax, and that is long-standing policy rather than a temporary incentive with an expiry date. The cédula supports banking, company formation and Mercosur mobility. For someone actually relocating, it is among the most accessible legitimate options available.

The mistake is not choosing Paraguay. The mistake is treating Paraguayan residency as a replacement for leaving your old country properly. Those are two separate pieces of work, and the second one is where the tax outcome is decided.

The order in which you do things matters, and it is this. First, find out what your old country requires before it will stop taxing you as a resident. Second, create and keep the evidence that proves you have met those requirements, while you are still in a position to create it. Third, sort out your company, before its position is decided for you. Only then does the Paraguayan residency go into the plan, as the destination and not as the solution.

This article addresses Paraguayan law and its interaction with departure-country residency rules in general terms. Exit taxation, trailing residence rules and corporate residence tests are country-specific and change frequently; nothing here is advice on your position or on your home country's rules, which will determine most of the outcome. Talk to us before acting on it.