More and more people from Europe are searching for alternative destinations for living, investing, and protecting their capital. In this context, Paraguay stands out as one of the most attractive places for those looking for a second plan – not just as a reserve, but as a real and beneficial alternative. Why? Because obtaining residency in Paraguay is relatively simple, legal, and stable, and the additional benefits are truly significant.
Why Residency in Paraguay?
Paraguay is a country with a liberal approach to foreign residents, streamlined bureaucracy, and a favorable tax environment. Residency provides not only the right to reside and work, but also the ability to start a business, hold a bank account, and full access to local and international investment opportunities.
The main benefits include:
- Legal residence and unlimited work rights
- No requirement to reside permanently in the country – residency can be maintained even when living abroad
- No tax on income earned outside of Paraguay
- Ability to obtain a local identification card (cédula) and tax registration (RUC)
Temporary and Permanent Residency – How Does It Work?
The process of obtaining residency in Paraguay is divided into two stages:
1. Temporary Residency (2 years)
The first step is to obtain temporary residency, valid for 2 years. After obtaining it, you can legally reside and work in Paraguay.
2. Permanent Residency
After two years, you can apply for permanent residency, which is valid for life. Importantly, you only need to appear physically in Paraguay once every 3 years to maintain it.
Required Documents
To start the process, you need the following documents:
- Birth certificate
- Certificate of no criminal record
- Marriage certificate (if applicable)
All documents must be apostilled and translated into Spanish by a local sworn translator in Paraguay.
How Long Does the Entire Process Take?
- Residency approval: up to 90 days
- The entire process of obtaining documents along with cédula: from 3 to 6 months
If you plan to stay in Paraguay for less than 2 months, it is advisable to divide the process into two separate visits:
First – submit an application for residency
Second – application for cédula (ID card)
Property Purchase and Residency
Although purchasing a property is not mandatory to obtain residency, it can significantly facilitate many formalities – from opening a bank account to building an economic history in the country.
Importantly:
- You do not need to be a resident to buy property – just a passport is sufficient
- A resident, when selling property, is subject to a lower tax rate
How We Help?
We offer comprehensive support at every stage:
- Advice on residency, documents, and travel
- Sworn translation of documents in Paraguay
- Organization of the entire bureaucratic process
- Appointment booking, logistics, on-site translation
- Assistance in opening a bank account and registering the RUC
- Possibility to obtain residency remotely – with document preparation and trusted notaries
We cooperate with the renowned law firm Colab Abogados, whose team speaks fluent English and understands the specifics of working with foreign clients. This means quality, transparency, and security.
Security and Legal Stability
Unlike countries such as Spain or Poland, where evictions can be complicated and time-consuming, in Paraguay, the law is on the side of the owner. Thanks to a properly structured agreement, a quick eviction in case of non-payment can be made – without lengthy court cases.
Summary
Paraguay is an ideal alternative for those looking for peace, stability, a second residency, and investment opportunities outside of Europe. Residency in Paraguay offers:
✅ A simple and transparent process
✅ No obligation to reside permanently
✅ Tax benefits and full legality
✅ Freedom to operate in South America
If you want to know how to start, contact us – we will answer basic questions for free, and if you are planning investments, we invite you for a consultation.
Paraguay is still an exotic destination for investors. There are many reasons for this – one is definitely the distance, which is over 11 thousand kilometers in a straight line. Most people associate the name of this country, but few know much about it, and it is even confused with Uruguay – a country with which it does not share a border.
That is why this site and our team were created – to present Paraguay as a country full of potential and to showcase the opportunities it offers for both investors and individuals seeking a stable alternative for living and doing business. We want to not only share knowledge about the real estate market but also bring closer the history, culture, and realities of daily life in Paraguay.
Why Choose Paraguay?
In light of growing geopolitical tensions and uncertain economic situations worldwide, more and more investors are looking for stable and resilient alternatives to global crises. The year 2025 has brought more turbulence, including a new round of trade war initiated by the Trump administration in April of this year. In such an environment, capital not only seeks safe havens but also places where it can gain long-term.
Paraguay is one of the few countries that remains free from armed conflicts and political tensions. Moreover, it has key resources that make it a self-sufficient and resilient country in the face of many threats:
- Very fertile agricultural land, where crops can be grown even twice a year
- Cheap electricity, entirely sourced from the Itaipú hydropower plant – one of the largest in the world, with a capacity of 14,000 MW
- Large reserves of fresh water – Paraguay lies atop one of the largest underground water reservoirs in the world – the Guarani Aquifer
This natural reservoir stretches beneath the territories of Paraguay, Brazil, Argentina, and Uruguay, with a volume exceeding 37,000 km³ – enough to meet the water needs of all humanity for many decades. Paraguay has access to about 13% of this resource, which, given its relatively small area and population, is a huge strategic asset.
Stable Demographics and Growth Potential
Paraguay currently has about 7 million inhabitants, but its natural growth rate is one of the highest in the region – an average of 2.4 children per woman. This means the population will gradually increase, along with demand for infrastructure, housing, and services.
In combination with access to resources, a stable currency, and cheap energy, this country has all the conditions to become the economic leader of South America in the coming years – at least in terms of quality of life, energy independence, and investment attractiveness.
The Paraguayan economy mainly relies on the agricultural sector, where soybean cultivation dominates, along with cattle breeding, mainly in the northern territories of Chaco, where farms often cover several dozen thousand hectares.
Conclusions?
In a situation of global uncertainty and continuous economic turmoil, it is worth considering diversifying the location of capital. And if you are looking for a calm, sovereign, independent, and long-term perspective country – Paraguay may be one of the most interesting destinations of the 21st century.
How Does the Tax System Work in Paraguay?
It is a country with one of the most friendly tax systems in South America, characterized by simplicity and low rates. It’s no coincidence that more and more investors and entrepreneurs are choosing to start their activities or relocate their tax residency here.
Low Rates, Simple Rules
In Paraguay, maximum tax rates are set at 10% – and this applies to:
- personal income tax (PIT),
- capital gains tax,
- as well as VAT (locally called IVA – Impuesto al Valor Agregado).
This is a system based on the principle: pay, but wisely – which is why many citizens and residents do not avoid taxation, as it simply… pays off.
RUC and the Marangatu Platform – Basics of the System
After obtaining a Paraguayan identity document (cédula de identidad), you can apply for a local tax number – RUC (Registro Único del Contribuyente). This is the equivalent of a Polish NIP, which allows us to issue invoices, conduct business, and settle accounts with the local tax office.
With the issuance of a RUC number, we gain access to the state online platform, Marangatu, which serves as the center for managing all tax matters. After logging in, we can specify the type of business activity we are conducting – this could be, for example, property rental, intangible services, product sales, and many more.
What Does Practice Look Like?
In Paraguay, every purchase can be a cost – including those at restaurants or shops. Simply inform the seller that you want an invoice while paying and then provide your RUC number. The seller will issue the invoice, and if they operate within the electronic system – the document will automatically appear in your Marangatu account.
This is very intuitive and resembles running a sole proprietorship in Poland – with the difference that:
- there is no ZUS or fixed contributions regardless of income,
- the system is much simpler to operate,
- and the reporting obligations are limited
Tax Settlements – What and When?
The tax system is based on two main declarations:
IVA Declaration (VAT) – submitted monthly
- We balance sales and cost invoices
- The system automatically calculates the tax to be paid
IRP Declaration (Impuesto a la Renta Personal) – submitted once a year
- It concerns our personal income
- It is the equivalent of the Polish annual PIT declaration
- There are different types of IRP, and our accountant will appropriately match them to the activities we conduct
Invoices: Electronic and Paper
In Paraguay, there are two types of invoices:
- Electronic invoices – issued directly by the Marangatu system; they appear automatically on the taxpayer’s account
- Paper invoices – issued “traditionally” and requiring manual entry into the system if we want to include them as costs/sales
The topic of the Paraguayan tax system is very extensive, which is why we will gradually publish separate blog articles on our site, detailing:
- how to settle various types of business activities,
- how to legally optimize costs and revenues,
- and what obligations an investor, landlord, freelancer, or business owner has.
Summary
Paraguay is a country that at first glance may seem distant, unknown, and exotic. However, upon closer inspection, it turns out to be one of the most underrated players in the global puzzle – a neutral, resource-rich, energy-independent, demographically stable country free from geopolitical tensions.
In a world full of economic turbulence, trade wars, inflation, and uncertainty, Paraguay stands out with its calmness, simplicity, and real opportunities – both for individuals seeking a safe haven and for those thinking long-term about investments or wealth diversification.
Land, water, energy, stable currency, population growth, low taxes, and cheap living are not just slogans from a marketing brochure, but real foundations that place this country among the most interesting destinations of the 21st century.
Planning a trip to Asunción? Whether you are visiting the city for business, tourism, or as a digital nomad, choosing the right place to stay is crucial. Asunción offers a wide range of districts and hotels tailored to various travel styles and budgets.
In this guide, we present the most interesting districts and recommended hotels – from luxury to budget options.
🏙️ Best Districts to Stay in Asunción
Villa Morra – The Heart of Urban Lifestyle
Villa Morra is one of the trendiest and also most expensive districts in Asunción. Here you will find a wide range of exclusive restaurants, cafes, boutiques, and modern office buildings. The district is very popular among foreigners and the local upper class.
➡️ Why stay here?
- High level of safety
- Many streets in Villa Morra are very quiet and green, while still being close to everything essential like shops, galleries, banks, restaurants, and cafes.
- It is in this district that you can stay in the most expensive hotels in the capital of Paraguay.
Las Lomas (Carmelitas) – Elegance and Modernity
Located right next to Villa Morra, Las Lomas is an ideal location for those who value access to modern amenities.
➡️ Why stay here?
- Proximity to Shopping del Sol and Paseo La Galeria
- Definitely a choice for younger people who appreciate nightlife; close proximity to places like Paseo Carmelitas or Ferneteria will be a significant advantage.
Recoleta – Tranquility in the Financial Center of the City
Recoleta is a calmer, more residential district that is still well-connected to the city center. It is a good choice for families with children and those looking for relaxation in a greener environment.
➡️ Why stay here?
- Peaceful atmosphere and proximity to Villa Morra
- Proximity to parks and green areas, as well as the iconic gathering place, great for lunch, dinner, or brunch – La Cuadrita.
- Possibility of walking around, better sidewalk quality than in other districts.
🏨 Best Hotels in Asunción
✨ Luxury Hotels
- La Mision Hotel Boutique (Villa Morra)
A boutique hotel with a colonial touch, perfect for discerning guests. It offers a pool, garden, excellent cuisine, and a great location. Just across the street, we find ourselves in the Shopping Marisca complex, and within a 5-7 minute walk, we can reach a great place full of modern, atmospheric restaurants in a green setting “La Cuadrita.” - Factoria Hotel (Villa Morra)
A stylish establishment with original interior design. Industrial design merges with elegance and comfort. An advantage is the proximity to the great cafe Cafe de Aca, which is a favorite meeting spot for locals and expats. - Sheraton Asuncion Hotel (Ycua Sati)
International standard, rooftop bar, spa, pool, and proximity to luxury shops make this hotel an ideal choice for those seeking class and comfort. As of writing this post (April 2025), the hotel is undergoing a major renovation and is temporarily closed.
💼 Mid-Range Hotels
- Palmaroga Hotel (Centro)
Stunning design and good location in the historic center. A good choice for those wanting to explore on foot, however, the “Centro” district may be less attractive for many. It’s not easy to walk to districts like Villa Morra, Recoleta, or Carmelitas. If you want to feel the vibe of the old town, you might also consider Airbnb in the Las Mercedes district, which is significantly more appealing. - Aloft Asuncion (Carmelitas)
A youth-oriented hotel with modern design and great amenities, such as a rooftop bar, making this an excellent choice for millennials and digital nomads. Proximity to Shopping del Sol and Paseo La Galeria is also an advantage.
💸 Budget Options
- Hotel Guaraní (Centro)
One of the most well-known hotels in Asunción, offering a good standard at a reasonable price. Retro style with a touch of history. - Mediterraneo Hostel (Centro)
A hostel where many travelers stay, valuing basic comfort without seeking luxury. The advantage of the hostel is its large recreation area, where we can spend time reading books or working with a laptop and coffee if we work remotely. This is a very budget-friendly option, but if that’s what you’re after, we believe it’s the best position.
🌟 BONUS: Where to Look for Accommodation?
The best booking platforms with a large database of hotels in Asunción are:
It’s always a good idea to compare prices and check reviews from other travelers before making a reservation.
📌 Summary
Asunción is a city of contrasts – combining modernity with tradition, its vibrant districts intertwine with peaceful enclaves. Whether you are a tourist, freelancer, or traveling for business, you are sure to find the ideal spot for yourself here.