last updated: May 27, 2022date: ubud, indonesia
Paraguay, an amazing landlocked country that few people have ever heard of, is one of the easiest countries in the world to obtain a second passport and citizenship, and the process can take as little as three years.
Reading: Paraguay bitcoin residency
As a free and peaceful country, Paraguay welcomes people of all nationalities, particularly foreign investors and entrepreneurs, to obtain a second permanent residence in Paraguay and become a tax resident.
one of the main things foreign investors like about paraguay is that you don’t have to physically live there: just one day every three years will be enough to maintain your residency. That, coupled with the relatively low investment requirement, puts Paraguay on many people’s radar.
The country does not tax foreign source income, and you can obtain permanent residence in Paraguay with a small bank deposit.
with a paraguayan passport, you can access the european union (eu), the united kingdom (uk) and ireland, so it is a very attractive passport. It is also part of the MERCOSUR trade bloc in South America, so you can also go anywhere in South America without a Paraguayan visa; an identification card will suffice.
Another common belief is that Paraguay is one of the fastest ways to obtain citizenship. on paper, and in some cases, that may be true. technically, you could become a naturalized Paraguayan citizen in just three years, according to the Paraguayan national constitution.
However, as with all second home and citizenship by investment programs, there are challenges that we will address in this blog.
On the one hand, you need to understand that in many countries, what is written in the letter of the law may not always follow due process. what is said to be possible is not necessarily how things turn out, especially with respect to citizenship.
Some companies try to sell you a residency or citizenship program, and in the process, you discover that what you are getting is not what they promised.
With constantly changing laws and slow bureaucratic processes in countries, companies will try to sell software as one size fits all.
We are not trying to sell you Paraguayan citizenship or residency. what we do is analyze what each program is and design a holistic plan that meets your needs and those of your family and company.
We sat down with government officials; we know what only works on paper and what doesn’t, and we know the loopholes in each program.
The fact that the law establishes that you can apply for Paraguayan citizenship after three years does not guarantee anything. it means you can apply and they should consider your application, but beyond that, nothing is certain.
of course, you have to spend more than 183 days there for each of those three years and pass an exam in language, geography, politics and history in Spanish.
In 2022, applications will take longer to process, more applications will be denied without reason, and lawyers won’t be as helpful.
So why do people approach us for Paraguayan citizenship?
Why obtain a Paraguayan residence and citizenship?
Paraguay, a small and unknown country, has its fair share of problems.
A decade ago, it was in the top 10 of the most corrupt countries in the world, according to Transparency International. Fortunately, the situation has improved, and Paraguay currently ranks 53rd in the world; there is still a long way to go to have an honest and democratic government, but an impressive improvement.
approximately 27% of Paraguay’s 7.4 million citizens live below the poverty line.
Essentially, the government of Paraguay has fiscal policies that ensure that very little is collected in taxes and that no money can be spent on social services and poverty reduction initiatives.
The income tax has a fixed rate of 10%. Paraguay has no net wealth tax, capital gains tax, inheritance tax, or tax on capital acquisitions.
according to the new york times, 85% of agricultural land belongs to 2.6% of the owners. — highly concentrated in the hands of a wealthy few. The government has done virtually nothing to implement any kind of agricultural land reform, but this could change soon.
Also, the main industry of agriculture is largely automated, which means fewer workers are needed.
and when you combine all those factors, you have a political and economic situation that is a bit unstable.
But things are going to change for Paraguay.
First of all, the average age in the country is just over 26 years old. you have a workforce that is young, fast-paced, and ready for employment opportunities.
Second, the country’s fiscal policies, some of which have unfavorable side effects for the poor, are also desirable to foreign investors.
all foreign-sourced income is completely exempt from tax, and the government has been quite adamant about this, with promises never to reverse that policy.
And finally, the investment required to become a resident of Paraguay is really low, which makes it an affordable option for many.
why obtain permanent residence in paraguay?
- You can apply for Paraguayan citizenship after three years.
- The process is simple.
- There are no restrictions on your nationality to obtain Paraguayan nationality.
- Residence in Paraguay requires only a bank deposit of $4,500 and no minimum income if you are a citizen of one of the countries that have visa-free or visa-on-arrival access to Paraguay. this includes you if you are a US, Canadian, Australian or New Zealand citizen.
- Another investment option is to put up $7,290 to start a business. Applicant must provide a business plan showing they will spend $70,000 over 10 years.
- You do not need to move to Paraguay to maintain residency.
- Dual citizenship is allowed.
- Paraguay speaks Spanish, an easy language to learn.