South America
Paraguay is a landlocked country in South America that has become extremely popular with digital nomads due to its territorial tax system (0% tax on foreign income), easy residency process, and very low cost of living. Although Paraguay does NOT have a specific digital nomad visa, its temporary residency program (Law 6984/22) requires no minimum income proof and can be obtained in just 3-4 days in-country, making it one of the easiest second residencies in the world. After 21 months, temporary residents can convert to permanent residency. Paraguay is a MERCOSUR member, providing visa-free travel throughout South America.
Visa requirements vary by nationality
Citizens of ~95 countries including US, Canada, EU, UK, Australia can enter Paraguay visa-free for up to 90 days. A one-time 90-day extension is available from Migraciones.
No specific prohibition for tourists working remotely on foreign contracts, but Paraguayan law technically requires a residency permit for any work activity. Enforcement is virtually non-existent. For legal certainty, obtain temporary residency which includes full work authorization and has no income requirement.
Extension: 90 days (max 1x)
Cost: $50
Process: Apply in person at Dirección General de Migraciones (Asunción or Ciudad del Este) before initial 90-day stamp expires. Total maximum stay is 180 days.
Renewal: After 180 days as tourist, must leave Paraguay. Consider applying for temporary residency for longer stays.
Paraguay uses territorial taxation: 0% tax on foreign-source income. Only Paraguayan-source income is taxed (IRP 8-10%). CRITICAL: services delivered FROM Paraguay may be classified as Paraguayan-source income even with foreign clients. Tourists staying under 183 days are generally not tax residents. Source: PwC Tax Summaries.
Two-year residency permit with full work authorization — the most popular option for digital nomads. No income requirement, no bank deposit, no investment needed. Can convert to permanent residency after 21 months.
Temporary residency includes full work authorization. Remote work for foreign clients is legal. However, income from services delivered from Paraguayan territory may be classified as Paraguayan-source and subject to IRP 8-10%, even with foreign clients. Foreign-source income (delivered from outside Paraguay) is 0% taxed. Proper structuring is essential.
Extension: 730 days (max 1x)
Cost: $350
Process: Can extend once for another 2 years, or convert to permanent residency after 21 months.
Renewal: Can renew for another 2 years or convert to permanent residency after 21 months. Conversion is simpler than initial application — no apostilled foreign documents required.
Territorial tax system: 0% on foreign-source income. Paraguayan-source income: IRP 8-10% progressively. CRITICAL: if you deliver services FROM Paraguay, even to foreign clients, this may be classified as Paraguayan-source income and taxed 8-10%. Corporate tax (IRE) is 10% flat. Dividends: 8% for residents. No wealth tax, no inheritance tax. Source: PwC Tax Summaries, GoParaguay.
Ten-year permanent residency obtained after 21+ months of temporary residency. The old $5,000 bank deposit shortcut was eliminated by Law 6984/2022. Full work rights, renewable every 10 years, pathway to citizenship after 3 years.
Full work authorization as permanent resident. Remote work for foreign clients is legal. Same territorial tax rules apply — foreign-source income is 0% taxed, but services delivered from Paraguay may be 8-10%.
Permanent residents are tax residents. Territorial tax: 0% on foreign-source income. Paraguayan-source income: IRP 8-10%. Dividends: 8% for residents, 15% for non-residents. No wealth tax, no inheritance tax. Source: PwC Tax Summaries.
Available only to citizens of Oman and Qatar. Grants a maximum stay of 30 days, obtainable at any port of entry in Paraguay.
Short-term tourist visa — no work authorization. For remote work, obtain a temporary residency permit.
Short tourist stay — no tax residency implications. Paraguay uses territorial taxation: foreign-source income is not taxed regardless of residency status.
Fast-track permanent residency through SUACE. Requires $70,000 investment plan over 10 years and creation of 5 local jobs. Grants immediate 10-year permanent residency — no temporary phase required.
Full permanent residency with unrestricted work rights. Can operate businesses, hire employees, and work remotely. Territorial tax: foreign-source income is 0% taxed.
As permanent resident and business owner: IRE 10% on Paraguayan-source business income. IRP 8-10% on personal Paraguayan-source income. Foreign-source income: 0%. Dividends: 8% for residents. Employee costs are deductible. Source: PwC Tax Summaries.
Required for citizens of countries not eligible for visa-free entry or visa on arrival. Single entry $65 USD, multiple entry $100 USD. Valid for 90 days.
Same as visa-free entry: no specific prohibition for remote work on foreign contracts, but legally requires a work permit. Enforcement is minimal.
Tourist visa — no tax residency implications for stays under 183 days. Paraguay uses territorial taxation: foreign-source income is not taxed.
Visa requirements can change frequently. This information is provided for general guidance only and should not be considered legal advice. Always verify current requirements with the official embassy or immigration authorities before making travel plans. Last updated: December 1, 2025