Crypto and moving abroad in 2026: where coins stay tax-free (and who reports them now)
DAC8 reports your exchange, Austria taxes your bag at the border, Germany may not tax it at all. Who should move with crypto in 2026 – and who shouldn’t.
Paraguay
Paraguay taxes only Paraguayan-source income, at 10% or less, and grants temporary residence without income tests. Cheap and uncomplicated – but a cédula alone doesn’t end your tax residency elsewhere, and banks and tax offices know that trick by heart.
Our verdict
Great if you want a real, low-cost base in South America where foreign income stays untaxed, or a cheap Plan B residence for later. Skip it if you want the card as a paper alibi while living in Europe – nobody buys that – or if you need a structure with a strong treaty network.
Great for
- Location-independent founders with foreign companies who will live there 120+ days
- Plan B seekers who want a permanent residence for a low budget
- Investors building a South American base or local business
Skip it if
- People who want to keep living in Europe with a Paraguayan card as proof
- Businesses that need a treaty network or a respected holding location
- Anyone allergic to Spanish-language bureaucracy and in-person appointments
Key numbers at a glance.
- Corporate tax (IRE)
- 10%
- on Paraguayan-source profits
- Dividend tax (IDU)
- 8% / 15%
- resident / non-resident shareholders
- Personal income tax (IRP)
- 8–10%
- Paraguayan-source income; filing only above PYG 80 million
- VAT (IVA)
- 10%
- 5% on some goods
- Setup time
- ≈ 2–3 weeks
- EAS through SUACE, plus apostilled documents
- Running cost
- ≈ €2,500 / year
- accountant, monthly VAT and annual returns
- Minimum stay
- 120+ days
- per calendar year for tax residency
- Currency
- PYG (guaraní)
The Nerdy Index.
15 criteria, each scored 0–10 by a published formula or rubric. Pick who you are – the index re-weights what matters for you.
63Nerdy IndexFounder, moving with the company
54Company
72Residence
CompanyResidence
Company 54/100
Tax on distributed profits23.5% 4.1/10
Corporate tax plus dividend withholding on €100,000 profit paid out to a non-resident owner. Transparent entities (US LLC) pay nothing at company level – the owner pays at home, so they get a neutral 5.
Tax on reinvested profits10% 7.1/10
Tax while profits stay in the company (Estonia and Georgia: 0%).
Running cost≈ €2,500 / year 8.7/10
Typical yearly cost to keep a small trading company compliant: registered office, accounting, tax filings, audit if mandatory, government fees. Excludes local staff and office rent.
Context: Local accountant for monthly VAT and annual IRE returns (a few hundred US dollars a month), plus address and registration fees for a small EAS or SRL.
Setup speed & remote formation≈ 15 working days 6/10
Typical working days from signed documents to a registered company. +1 point (max 10) if it can be done fully remotely.
Context: An EAS is registered through the SUACE one-stop shop within days; the RUC tax number, apostilles and translations usually make it two to three weeks. Possible by power of attorney.
Banking accessNerdy assessment 4/10
How easy it is for a foreign-owned company to open and keep a business account (local bank or regulated EMI) that works for international payments.
Our assessment: Local banks want residence, a cédula and an in-person visit, and onboarding can take weeks; foreign-owned companies with no local business are often turned down.
Reputation & treaty network6 treaties · no list 3.2/10
Number of double tax treaties in force, minus penalties for blacklists that make banks and tax offices nervous: EU list of non-cooperative jurisdictions (Annex I), EU watchlist (Annex II), FATF grey list.
Context: Treaties only with Chile, Qatar, Spain, Taiwan, the UAE and Uruguay; not on the EU lists or the FATF grey list, but ‘Paraguay only’ structures still raise eyebrows.
Substance burdenNerdy assessment 7/10
How much real presence (director, office, staff, board meetings) the company needs locally to be respected as tax resident there and to keep the bank happy. Higher score = lighter burden.
Our assessment: No local director or office rules for an EAS, but you need a local accountant and a real reason for the company; managed from abroad it is taxed where you live.
Residence 72/100
Personal tax for a new resident0% (foreign dividends) 10/10
Effective tax a newly arrived resident pays on €100,000 of income from their own (foreign or local) company, using the best regime realistically available to an entrepreneur (non-dom, flat tax, territorial, special regime). Social security excluded.
Context: Tax resident taking €100,000 as dividends from their foreign company: foreign-source income isn’t taxed. Services performed for Paraguayan clients or paid out by a Paraguayan company are taxed at 8–10% or 8% IDU.
Residency accessNerdy assessment 8/10
How realistic it is for a non-EU entrepreneur to get a residence permit that also gives tax residency: requirements, cost, time, approval odds. EU citizens usually have it easier – noted in the reason.
Our assessment: Temporary residence without income or investment proof, for a few hundred euros in fees; you just have to appear in Asunción with apostilled documents and wait a few months.
Minimum stay120+ days 6/10
Days per year you need to spend there to keep your permit and your tax residency (whichever is stricter, using the most flexible programme).
Context: Tax residency needs more than 120 days in the country in a calendar year; the permits themselves have no fixed day count.
Cost of living35.1 (Asunción) · Asunción 9.2/10
Numbeo Cost of Living Index (excl. rent, New York = 100) for the city most expats choose.
Context: Numbeo cost of living excluding rent for Asunción – one of the cheapest capitals on this list.
Safety45.3 (Asunción) · Asunción 4.5/10
Numbeo Safety Index for the same city (0–100, higher is safer).
Context: Moderate crime by Numbeo’s index; the expat districts are fine, petty crime and robberies are a real topic.
Rule of law & stability31st percentile 3.1/10
World Bank Worldwide Governance Indicators, Rule of Law percentile rank (0–100). Measures how predictable courts, contracts and property rights are.
Context: World Bank WGI 2025, Rule of Law: Paraguay ranks above about 31% of 215 economies – slow courts and corruption concerns.
English in daily life & businessEF EPI 531 5.2/10
EF English Proficiency Index score. Countries where English is an official or everyday business language count as 700.
Context: EF EPI 2025: 531 (rank 43), Asunción 563 – everyday life and administration run in Spanish and Guaraní.
Mobility & long-term optionsNerdy assessment 6/10
What the residence gives you beyond the country: Schengen/EU access, permanent residence and citizenship path, passport strength of a future citizenship, dual citizenship allowed.
Our assessment: Permanent residence after two years (or directly as investor) and naturalisation possible after about three years of residence, but the passport path is slow in practice and the residence gives no rights elsewhere.
Numbers checked September 2026. Click any row for the formula, our reasoning and the source. How the Nerdy Index works
Residency & visa routes.
Temporary residence (Law 6984/2022)
Up to two years, renewable. Apply in person at the Dirección Nacional de Migraciones in Asunción with apostilled, translated documents and criminal record checks; government fee about PYG 2.9 million (≈ €330). No income or investment proof.
Permanent residence
Change of category from temporary residence, applied for in the three months before the temporary card expires.
Investor Pass (since April 2026)
Direct permanent residence without the temporary stage: from USD 70,000 in a productive business with a plan for five formal jobs; other investment categories need higher amounts – check the current MIC conditions.
Tax residency
More than 120 days in Paraguay in a calendar year. Only then does the tax office (DNIT) treat you as resident – the cédula alone doesn’t.
Why Paraguay6
- Territorial taxation: foreign income isn’t taxed
- Low rates: 10% corporate, 8–10% personal, 10% VAT
- Residence without income test for a few hundred euros in fees
- Only 120 days a year for tax residency
- Low cost of living in Asunción
- Permanent residence in about two years, or directly with the Investor Pass
Watch out for6
- Only six tax treaties (no Germany, Austria or Switzerland)
- A cédula without real presence won’t convince your old tax office or bank
- 23.5% combined tax when a Paraguayan company pays dividends abroad
- Spanish-language administration, in-person appointments in Asunción
- Banks are slow and suspicious of newcomers
- Safety and rule of law are weaker than elsewhere on this list
Paraguay is the quiet one in South America. Landlocked between Brazil, Argentina and Bolivia, it rarely makes the news – and yet it turns up in every conversation about Plan B residencies and territorial tax. The reasons fit on a napkin: rates of 10% or less, no tax on foreign-source income, and a residence permit that needs neither an income test nor a fortune.
The fine print deserves the same attention. A Paraguayan cédula doesn’t end your tax residency in Germany, Austria or anywhere else. Paraguay has only six tax treaties, banks move at the speed of a Sunday afternoon, and Asunción is not Zurich. Here’s how it works as of September 2026.
Is it for you?#
Paraguay works as a real, low-cost base for someone whose income comes from abroad. Not as a plastic card in a drawer. Spend more than 120 days a year there, and dividends from your foreign company or income from foreign investments stay untaxed in Paraguay.
It fits well if you’re location-independent, your company sits somewhere that makes sense on its own (and is managed where you live), and you’re happy with a Spanish-speaking, unhurried, affordable life. It also suits people who want a permanent residence as insurance – cheap to get, easy to keep – and investors building something in the fast-growing local economy.
It’s the wrong choice if you want to keep living in Europe and use the card as proof that you’ve left. Tax offices have seen the “Paraguay residence, German life” pattern so often they could draw it from memory. It’s also a weak home for the company itself: 23.5% combined tax on payouts abroad, few treaties, and a name that makes some compliance teams reach for the extra questionnaire.
The company#
Short version: live in Paraguay, sure. Park your online business in a Paraguayan company, usually not.
The vehicles#
The common forms are the SA (sociedad anónima), the SRL (limited liability company) and the EAS (empresa por acciones simplificada), introduced in 2020 to make formation faster. The EAS is registered through SUACE, the government one-stop shop, and is usually the simplest choice for a small foreign-owned business. Every company needs a tax ID (RUC) from the tax authority DNIT and a local accountant.
How profits are taxed#
- Business income tax (IRE): 10% on Paraguayan-source profits. Small businesses can use simplified regimes (IRE Simple, RESIMPLE).
- Dividend and profit tax (IDU): 8% for resident shareholders, 15% for non-residents.
- Personal income tax (IRP): 8–10% on Paraguayan-source income (8% up to PYG 50 million, 9% up to PYG 150 million, 10% above); no filing below PYG 80 million of gross income.
- Capital gains of individuals: 8%.
- VAT (IVA): 10%, 5% on some goods.
Worked example: €100,000 profit, three ways.
| Paraguayan company, resident owner | Paraguayan company, non-resident owner | Foreign company, you live in Paraguay | |
|---|---|---|---|
| Corporate tax | 10% = €10,000 | 10% = €10,000 | depends on company country |
| Dividend tax | 8% = €7,200 | 15% = €13,500 | 0% in Paraguay |
| Net to you | €82,800 | €76,500 | – |
| Tax in Paraguay | 17.2% | 23.5% | 0% |
The third column is why people move here. It only works if the foreign company is genuinely run from and taxed where it makes sense – a letterbox with a nice logo doesn’t count. Compare variants in the tax calculator.
Setup and costs#
An EAS can be registered within days once your documents are ready. Getting them ready is the slow part: apostilles, translations and the RUC usually make it two to three weeks. A power of attorney lets a local provider do it without you. Setup with professional help typically costs from about USD 1,000–1,500 upwards; running costs for a small company with a local accountant, monthly VAT filings and annual returns are around €2,500 a year.
Banking#
Paraguayan banks want to see you in person, usually want a cédula and residence, and take their time – lots of it. Foreign-owned companies without local business often get a polite no. Once you’re resident and can explain your income, it works, but many residents keep their main accounts elsewhere. See our banking guide.
Substance#
There are no local director or office rules for an EAS. The harder question sits on your side of the ocean: a Paraguayan company managed from abroad is taxed where the management is (place of management), and a foreign company run from Asunción deserves a careful look too.
Living there#
Cheap to get, easy to keep, and nobody asks for bank statements with six zeros. Here’s the route.
Residency routes#
| Route | For | Key requirements |
|---|---|---|
| Temporary residence | Anyone | Up to 2 years, renewable; in person in Asunción; apostilled documents and criminal records; fee about PYG 2.9 million (≈ €330); no income proof |
| Permanent residence | Temporary residents | Apply in the 3 months before the temporary card expires |
| Investor Pass (since April 2026) | Investors | Direct permanent residence: USD 70,000 productive investment with 5 jobs, USD 150,000 tourism, or USD 200,000 in income-producing property or regulated financial investments held 2 years |
The migration law of 2022 (Law 6984/2022) made temporary residence the normal first step. While your application is pending, you get a provisional status that lets you leave and re-enter. The Investor Pass, based on a 2026 resolution of the Ministry of Industry and Commerce, reorganises the investor route through SUACE and skips the temporary stage.
Personal tax#
Residents pay IRP only on Paraguayan-source income. Foreign dividends, interest and capital gains are, as a rule, outside the Paraguayan tax net. For most people who move with foreign income, the local tax bill is small or zero – the kind of number European tax offices only print on refund notices.
Days#
You’re tax-resident with more than 120 days in Paraguay in a calendar year. Only then will the DNIT issue a tax residency certificate. The cédula alone doesn’t make you resident, and it certainly doesn’t make you non-resident at home. Check the tie-breakers in our tax residency guide and count your days with the day tracker.
Daily life#
Numbeo’s cost of living (excluding rent) for Asunción is 35.1 – one of the cheapest capitals we cover – and good flats in the nicer districts cost a fraction of European rents. Life is relaxed, people are friendly, and beef and tereré are national institutions. The downsides: summers regularly above 35 °C, patchy public infrastructure, a safety index of 45.3 (fine in expat areas, but use your head), and administration in Spanish (English is rare; EF EPI 531). Private healthcare in Asunción is decent and affordable; take international insurance for anything serious. Flights to Europe usually go via São Paulo or Madrid, so pack patience with your carry-on.
The catches#
Most Paraguay plans fail at home, not in Asunción. Read this before you apostille anything.
What can go wrong
01
Paper residence.
A cédula without 120+ days and a real life in Paraguay convinces nobody – least of all your old tax office.
02
Home country rules.
Exit tax, extended tax liability and CFC rules still apply – see exit tax and CFC rules.
03
Few treaties.
Only Chile, Qatar, Spain, Taiwan, the UAE and Uruguay – no protection against double taxation with Germany, Austria or Switzerland.
04
Local source.
Work for Paraguayan clients or payouts from a Paraguayan company are taxed locally.
05
Banks and reputation.
Slow onboarding, and “Paraguay only” structures draw questions.
06
Changing rules.
Migration rules changed in 2022 and again in 2026. Check the current version before you book flights.
Step by step#
Moving to Paraguay
Plan your exit
Check exit tax, deregistration and CFC rules at home, and decide where your company will be managed.
Prepare documents
Birth certificate, civil status, criminal records – apostilled and translated into Spanish. This takes weeks.
Apply in Asunción
File for temporary residence in person, or apply for an investor certificate first if you use the Investor Pass.
Get your cédula and RUC
Once approved, apply for the identity card; register for a tax ID if you earn local income.
Set up home and bank
Rent a flat, open a local account, keep proof of your presence.
Stay 120+ days and certify
Spend more than 120 days a year there and request a tax residency certificate from the DNIT.
FAQ#
Does Paraguayan residence make me tax-free?
No. It makes you eligible to become tax-resident in Paraguay if you spend more than 120 days there. Whether your old country lets you go is a separate question.
Can I get residence without living there?
You can get the permit with short visits, but then you’re not a Paraguayan tax resident – and probably still resident somewhere else.
Is a Paraguayan company a good idea for my online business?
Rarely. It pays 10% plus 15% on payouts abroad, has few treaties and weak banking. It makes sense for real local business or the Investor Pass.
How long until permanent residence?
Normally about two years via temporary residence; directly with the Investor Pass from USD 70,000.
Our take: Paraguay is one of the cheapest honest Plan Bs on the map – as long as you actually live the plan. Comparing Paraguay with Georgia or Dubai? Try the Jurisdiction Finder or book a strategy session. This guide is general information, not tax or legal advice.
Sources#
- Dirección Nacional de Ingresos Tributarios (DNIT)
- DNIT – Law 6380/2019 (IRE, IRP, IDU)
- Dirección Nacional de Migraciones – temporary residence
- Ministerio de Industria y Comercio – investor certificates
- La Nación – Investor Pass from USD 70,000
- SUACE – company formation
- PwC Worldwide Tax Summaries – Paraguay, individual
- PwC Worldwide Tax Summaries – Paraguay, treaties
- BOE – Spain–Paraguay double tax treaty
- Numbeo – Asunción
Sources & fact check.
Every number on this page comes from one of these. Last checked September 2026. Tax law changes – confirm with a licensed advisor before acting. Nothing here is tax or legal advice.
- Official Dirección Nacional de Ingresos Tributarios (DNIT) IRE, IRP, IDU, VAT, tax residency certificate dnit.gov.py
- Official Dirección Nacional de Migraciones – temporary residence temporary residence requirements and fee migraciones.gov.py
- Official Ministerio de Industria y Comercio – investor certificate (Investor Pass) Investor Pass routes mic.gov.py
- Official SUACE – company formation EAS registration suace.gov.py
- Law DNIT – Law 6380/2019 Paraguayan-source rule for IRP and IRE dnit.gov.py
- Law BOE – Spain–Paraguay double tax treaty treaty with Spain in force since October 2024 boe.es
- Advisor PwC Worldwide Tax Summaries – Paraguay tax rates, 120-day rule, treaties taxsummaries.pwc.com
- Index Numbeo – Asunción cost of living and safety cost of living, safety numbeo.com
- Index EF English Proficiency Index 2025 – Paraguay English level ef.com
- Index EU list of non-cooperative jurisdictions (Council, February 2026) EU Annex I / II status consilium.europa.eu
- News La Nación – Investor Pass from USD 70,000 (August 2026) Investor Pass thresholds cdn-www.lanacionpy.arcpublishing.com
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