Key takeaway: Permanent residency in Paraguay now requires two years of temporary residency (Law 6984/2022). Two options: standard route or SUACE (investment of $70,000 spread over 10 years). These updated rules eliminate outdated procedures and secure your relocation plans with a more structured process.
Do you still believe that a simple deposit of $5,000 is enough to obtain permanent residence in Paraguay?
Common mistake: Law 6984/2022 has revolutionized the rules, now requiring prior temporary residence or a structured investment.
This 2025 guide reveals the two valid ways to obtain this status, the pitfalls to avoid with outdated information, and how to optimize your application according to the current legal framework.
Find out in detail about the updated requirements and strategies for securing your plans to settle in this tax-friendly country.
Are you considering moving to Paraguay and aiming for permanent residency? Be aware that the method of depositing €5,000 into a Paraguayan bank account to obtain permanent residency directly is now obsolete. Law 6984/2022 now requires a mandatory temporary residency period, strengthening the integration of residents and aligning procedures with South American standards.
In 2025, there will be two main routes available to applicants: the standard route, requiring two years of temporary residence, and the investment route via the SUACE program. The first requires documents such as a valid passport, apostilled certificates (civil status, marriage, etc.), proof of solvency (bank statement or university degree), and clean criminal records issued by the country of origin and Interpol. It then provides access to concrete rights: opening a local bank account, access to public healthcare, or education.
The SUACE program targets investors willing to set up a business with a minimum capital of $70,000 over ten years. In exchange, they obtain a lifetime resident card (renewable every 10 years), travel facilities within Mercosur, and a simplified path to citizenship after three years. Moving to Paraguay therefore requires a clear understanding of these new rules, especially as the process remains strict: incomplete or poorly translated applications are frequently rejected, according to data from the General Directorate of Immigration.
Law 6984/2022, which came into force on October 19, 2022, profoundly reforms immigration in Paraguay. To clarify the situation, it abolishes the old system of obtaining permanent residence directly for USD 5,000. From now on, the vast majority of applicants must go through a two-year temporary residence period before gaining permanent status. This change responds to a need for greater control of migration flows, with more rigorous monitoring of the integration stages.
What other major changes does this law introduce? Here are the key points to know:
Many guides remain rooted in the old framework. In 2025, the process is clear: without validated temporary residence, permanent residence is inaccessible, except in legal cases. The law provides for exemptions for investors who can prove an economic contribution, or for certain family members of repatriated Paraguayan citizens (spouse, minor children). These exceptions remain subject to strict criteria.
A detailed analysis of the new legislation highlights that these measures aim to strengthen migration monitoring and regulate the gradual integration of residents. In practice, the overall process takes 3 to 4 years, including temporary residence (2 years), administrative procedures (2 to 6 months), and then obtaining permanent residence (valid for 10 years).
Since 2025, Paraguayan law has systematically required temporary residence in order to obtain permanent residence. This status, valid for two years (renewable), marks the first step toward administrative stability.
Obtaining the Cedula is the major advantage. This identity card allows you to open a local bank account, sign an employment contract, or subscribe to public services, just like a citizen.
The basic documents include a valid passport, a clean criminal record (for those aged 14 and over), and administrative documents (birth certificate, marriage certificate, etc.) that must be apostilled in accordance with the Hague Convention or legalized by the Paraguayan embassy.
The application process takes approximately 5 business days on site, but the preparation of documents can take up to 3 months depending on the country of origin. For details on the process, see the temporary residence process in Paraguay.
After 24 months of temporary residence, it is possible to convert to permanent status. The latter, valid for 5 years, has one key requirement: physical presence in Paraguay for at least one day every three years to maintain it.
In practice, since Law 6984/22, all applicants for permanent residency must first hold temporary resident status for a period of two years. This is the critical distinction to understand.
The process requires a stay of five working days in the country, accompanied by a bank deposit of €4,562 (approximately 31,500,000 Guarani) or a validated university degree. Once approved, the permanent Cedula is issued for 10 years.
The SUACE (Unified Business Service System) option benefits investors or entrepreneurs. This program requires a $70,000 investment over ten years in sectors such as agriculture, commerce, or real estate, avoiding the need for temporary residency.
In summary, the standard path alternates between two phases: two years of temporary residence, then a switch to permanent residence. In addition to the rights already acquired, permanent residence opens up advantages such as visa-free travel to MERCOSUR countries.
For candidates seeking citizenship, three years of permanent status (with 183 days/year in the country) trigger eligibility for naturalization. This process, overseen by the General Directorate of Migration (DGM), ensures gradual integration into the Paraguayan system while securing the rights of foreigners.
The SUACE (Sistema Unificado de Apertura y Cierre de Empresas) program offers a fast track to permanent residence in Paraguay starting in 2025. Unlike the standard process, it allows applicants to bypass the two-year mandatory temporary residence requirement. This pathway is primarily intended for entrepreneurs and investors who wish to settle permanently in the country.
To be eligible, you must present an investment project with a minimum value of $70,000. This amount is not required in a single payment: a solid business plan must detail its gradual deployment over a period of 10 years (approximately $7,000 per year). This flexibility facilitates access to the program, provided that the business created contributes to the local economy.
The process includes setting up a local business, getting the business plan approved by the Paraguayan Ministry of Industry and Commerce, and submitting the application for permanent residence. Processing is usually completed in 45 to 60 days, compared to two years through the traditional route. Fees include approximately $340 in government fees, $10,000 to $14,000 for legal formalities, and expenses related to setting up the business.
Once permanent residence is approved, the holder quickly obtains their Cedula (national identity card). The SUACE program stands out for its efficiency and compatibility with dual nationality, while offering tax advantages and easier access to MERCOSUR countries.
For more information on the process, please refer to the official information on the Paraguayan Ministry of Industry and Commerce website.
| Criterion | Standard route (Temporary > Permanent) | Investor Pathway (SUACE) |
|---|---|---|
| Prerequisite | 2-year temporary residence | Approved investment project |
| Minimum investment required | None (but proof of solvency required) | USD 70,000 (achievable over 10 years) |
| Timeframe for obtaining permanent residency | 2 years | 45 to 65 days |
| Main target | Individuals, retirees, digital nomads | Entrepreneurs, investors |
Why do some applicants obtain permanent residency in a matter of months, while others have to wait several years? The answer lies in the route they choose. The standard route, although longer, remains accessible without heavy investment. On the other hand, the SUACE program offers a fast track, ideal for investors who want to avoid the two-year temporary residency requirement.
In 2025, Paraguay is maintaining its strategy of economic attractiveness. If you have $70,000 to invest over a decade, SUACE allows you to skip the temporary residency stage. Conversely, if you prefer a gradual approach, temporary residency remains the key solution for non-investor applicants. Two paths, two realities: time and budget determine your best option.
To avoid delays, prepare a complete application from the outset. This list applies to applications for 2025, after obtaining temporary residence. The process is managed by the Dirección General de Migraciones (DGM).
Foreign documents must be apostilled. According to the DGM, errors in these formalities account for 40% of rejections. Translations must be done by a translator certified in Paraguay, except for documents in Brazilian Portuguese.
To maintain your resident status in Paraguay in 2025, temporary residence holders must visit at least once a year. Permanent residents must visit every three years. This requirement ensures a genuine connection with the country, preventing abuse related to non-physical residences. In the event of non-compliance, status may be revoked after two consecutive breaches, a rule that is often overlooked.
Since 2025, permanent resident cards must be renewed every 10 years. This renewal includes a biometric update (fingerprints, photo) and a background check. These measures strengthen administrative security. To better understand these obligations in the context of your move, Living in Paraguay: Pros and Cons offers an analysis of local daily life.
Permanent residence in Paraguay allows you to settle in the country on a long-term basis, live there, work, open a bank account, and start a business without any time limit. It offers administrative stability and a legal status equivalent to that of a local resident, with no renewal requirements or minimum annual presence.
The Paraguayan tax system applies a 0% tax rate on foreign income, which is rare worldwide. Take advantage of an attractive tax residence in Paraguay, with no taxes on dividends, investments, or online activities not related to the country. This framework is ideal for both digital nomads and retirees. Investors can save thousands of euros annually on foreign income, provided they structure their tax residence correctly.
The cost of living is 60% lower than in France. A meal in a cheap restaurant costs €3.50, a one-bedroom apartment in the city center costs €376, and transportation remains affordable (€0.45 for a bus ticket). Medical care is accessible: a private consultation costs around €30 in Asunción. The country remains stable, with a stable currency against the euro and controlled inflation.
Despite recent reforms, the process remains accessible. Two years of temporary residence are sufficient to apply for permanent residence. The SUACE option allows direct access via an investment of €70,000, with no strict physical residence requirement. This program requires a simple business plan, favoring entrepreneurs. Permanent residence, valid for 10 years, grants rights similar to those of Paraguayan citizens. An ideal setting for a secure "Plan B."
The process for obtaining permanent residence in Paraguay in 2025 remains clear and structured. There are two main options available to you: the traditional procedure via a two-year temporary residence, or the SUACE program for investors.
The first option requires initial temporary residency, followed by an application for permanent residency after two years. The second, via the SUACE program, allows direct access to permanent residency with an investment of $70,000 and a processing time of 1 to 3 months.
The administrative procedures, although legal and regulated, can be lengthy and complex, especially if you are not on site. For example, obtaining the biometric certificate or ensuring that translated and legalized documents are compliant requires meticulous attention.
To ensure that you follow the correct steps and avoid costly mistakes, specialized support is recommended. Contact our team of experts for personalized assistance, from putting together your application to opening your business if you opt for SUACE. This will save you time and ensure that you comply with Migration Law No. 6.984/2022 and the requirements of the General Directorate of Migration (DGM).
Permanent residence in Paraguay in 2025 follows a clear framework under Law 6984/22: temporary residence required or SUACE route for investors with a project worth USD 70,000. Despite a structured process, the procedures (apostille, proof of solvency) are complex. Benefit from 0% taxation on foreign income by choosing to work with our experts.
There are two main ways to obtain permanent residence in Paraguay. The standard route requires two years of temporary residence, followed by an application for conversion to permanent status. The fast-track route via the SUACE program is for investors and does not require the preliminary step. It requires an investment project of at least $70,000, approved by the Paraguayan authorities. Whichever route you choose, you will need to provide a valid passport, a clean criminal record, proof of solvency (such as a bank statement or property title), and documents translated/apostilled in accordance with the rules in force.
Paraguayan tax residency is based on territorial criteria. To qualify, you must stay in Paraguay for more than 183 days per year or establish your economic and social center of interest there. The country applies a territorial system: only income generated locally is taxable. This means that your foreign income remains exempt, which is a major tax advantage. Please note, however, that this tax residency is not obtained through a specific procedure, but automatically results from your activities and your actual presence in the country.
The immigration process in Paraguay is relatively simple compared to other destinations, but it changed in 2022 with Law 6984/22. The standard route requires two years of temporary residence before obtaining permanent status. For investors, the SUACE program allows them to skip this step by presenting an economic project. The main challenges lie in the administrative procedures (certified translations, apostilles) and the rigorous requirements for proof of solvency. However, access to a flexible labor market, favorable taxation, and a moderate cost of living compensate for these formalities.
Paraguayan citizenship can be acquired in two main ways: by court decision after four years of residence (two years temporary + two years permanent) or by marriage to a Paraguayan citizen after three years of living together. The process involves a reasoned application to the courts, a clean criminal record, and proof of solvency. Paraguay prohibits dual nationality, with some exceptions (such as Paraguayans naturalized in countries that allow it). Tax residency, often confused with citizenship, does not automatically grant nationality.
The time frame varies depending on the route chosen. Through the standard route, it takes approximately 2 years and 3 to 6 months after temporary residence. The SUACE route for investors is faster: 3 to 6 months after project approval. Law 6984/22 added a two-year preliminary stage for most applicants, but the administrative processing times remain competitive. In practice, delays are often due to incomplete applications or delays in the legalization of documents sent from abroad.
Since Law 6984/22, a university degree is no longer a direct route to permanent residence. However, it can serve as proof of solvency if you can provide evidence of a job offer or professional activity. In other words, a degree is not mandatory, but it strengthens your application by demonstrating your ability to support yourself. Exceptions apply to regulated professions (doctors, engineers) where a degree is required to practice.
Paraguay is not a tax haven in the strict sense, but it does have an advantageous territorial tax system. Income generated abroad is not taxable, and there is no tax on wealth, inheritance, or capital transfers. However, local companies pay a 10% corporate tax and the standard VAT rate is 10%. This structure attracts digital nomads and investors, provided they comply with attendance and reporting requirements. Fiscal transparency, reinforced by international conventions, rules out the "haven" label, while retaining strategic advantages.
There are many reasons: a cost of living 40 to 60% lower than in Europe, a tropical climate across 80% of the country, relative political stability, and a simplified legal framework for investors via SUACE. Residents benefit from territorial taxation, easy access to rural properties, and a quality of life suited to large families. In our experience, European retirees and entrepreneurs in the agri-food or real estate sectors are the most common profiles. The need to be fluent in Spanish or Guarani remains a barrier for some, but expatriate communities help with the adjustment.
The Paraguayan tax system is based on two pillars: a 10% income tax (IRP) and a standard 10% VAT. Foreign income earned by tax residents is exempt, a rare advantage in Latin America. Inheritance, gifts, and wealth are not taxable, although local companies pay a 10% corporate tax. Law 6984/22 has increased transparency, but non-residents only pay tax on local income. In practice, this low tax rate attracts investors, provided they comply with annual reporting requirements.
