Permanent residency in Paraguay. Step-by-step guide

How to Obtain Permanent Residency in Paraguay: A Step-by-Step Guide

Paraguay has emerged as one of the most attractive destinations for those seeking permanent residency due to its straightforward immigration process, low cost of living, favorable tax policies, and minimal residency requirements. Whether you’re an entrepreneur, retiree, digital nomad, or simply looking for a Plan B, Paraguay offers accessible pathways to permanent residency. This comprehensive guide outlines the step-by-step process to obtain permanent residency in Paraguay, covering the traditional route, the investment-based route, and the retirement program, with practical tips to ensure a smooth application.

Why Choose Paraguay for Permanent Residency?

Before diving into the steps, it’s worth understanding why Paraguay is a compelling choice:

• Affordable Process: Paraguay offers one of the most cost-effective residency programs globally, with low application fees and no financial solvency requirements since 2022.
• Tax Benefits: Paraguay operates a territorial tax system, meaning foreign-sourced income is tax-exempt, and tax rates for personal and corporate income are a flat 10%.
• Minimal Physical Presence: Permanent residents only need to visit Paraguay once every three years to maintain their status.
• Path to Citizenship: After three years of permanent residency, you can apply for Paraguayan citizenship, which allows visa-free travel to MERCOSUR countries, the UK, and the Schengen Area.
• Business-Friendly Environment: Paraguay’s growing economy, particularly in agriculture and real estate, makes it appealing for investors.

Pathways to Permanent Residency

Paraguay offers several pathways to permanent residency, including:

1. Traditional Route: Obtain temporary residency for two years, then convert to permanent residency.
2. Investment-Based Route (SUACE Program): Immediate permanent residency through a minimum investment of USD 70,000.
3. Retirement Program: Permanent residency for retirees with a monthly income of at least PYG 7,015,600 (approximately USD 1,022).

This guide will focus on the most common pathways: the traditional route and the investment-based route, as well as the retirement program for eligible applicants.

Step-by-Step Guide to Obtaining Permanent Residency in Paraguay

Step 1: Determine Your Eligibility and Choose a Residency Pathway

Before starting the process, confirm that you meet the basic eligibility criteria:

• Be at least 18 years old.
• Have a clean criminal record.
• Choose a residency program that suits your situation (temporary residency, investment, or retirement).

Traditional Route: Suitable for most applicants, requiring minimal documentation and no investment. Investment Route (SUACE): Ideal for entrepreneurs or investors willing to commit USD 70,000 over 10 years. Retirement Route: Best for retirees with a stable monthly income of at least USD 1,022.

Action: Research which pathway aligns with your goals. If you’re unsure, consult an immigration lawyer or agency like NTL Trust or Paraguay Pathways for personalized advice.

Step 2: Gather Required Documents

You’ll need to prepare a set of documents, which must be apostilled (or legalized) in your home country and translated into Spanish by a certified translator. The required documents vary slightly depending on the pathway but generally include:

For All Applicants:

• Valid Passport: Must be valid for at least 12 months.
• Birth Certificate: Apostilled by the issuing country.
• Criminal Background Check: From your country of origin or any country where you’ve resided in the past three years, apostilled.
• Civil Status Documents: Marriage certificate (if married), divorce certificate (if applicable), apostilled.
• Passport-Style Photo: Digital, white background.

For Investment Route (SUACE):

• Business Plan: Outlining how you’ll invest USD 70,000 over 10 years (e.g., real estate, agriculture, or commerce).
• Proof of Investment: Bank statements or documents showing funds, if applicable.

For Retirement Route:

• Proof of Income: Documentation showing a monthly retirement income of at least PYG 7,015,600 (≈ USD 1,022).

Tips:

• Ensure all documents are apostilled within six months of submission, as they expire after this period.
• Hire a certified translator in Paraguay or your home country to translate documents into Spanish. Some agencies, like Paraguay Pathways, include translation services in their packages.
• If you’re from a MERCOSUR country (e.g., Argentina, Brazil), you can use a national ID card instead of a passport and a boleta migratoria instead of a visa or passport stamp.

Step 3: Check Visa Requirements and Enter Paraguay

Check if your nationality requires a visa to enter Paraguay:

• Citizens of the US, Canada, Australia, New Zealand, and many EU countries can enter visa-free or obtain a visa on arrival.
• If a visa is required, apply for a tourist or qualifying visa at a Paraguayan embassy or consulate before traveling. Since July 2023, a qualifying visa (USD 160) is mandatory for settlement purposes and takes about two weeks to process.

Action:

• Book your trip to Paraguay, as you must submit your residency application in person. Plan to stay for 6–10 business days to complete the initial process.
• Ensure your passport is stamped upon entry to prove legal entry, even if you’re from a visa-free country.

Step 4: Submit Your Residency Application in Paraguay

Upon arrival in Paraguay, you’ll need to visit several government offices to submit your application. This process typically takes 3–6 business days and involves the following steps:

1. Visit the National Police: Obtain a certificate of personal data (for applicants over 14) and undergo fingerprinting and photo-taking.
2. Visit Interpol: Obtain an Interpol certificate to confirm your criminal record status.
3. Visit the IT Department: Complete technical requirements for your application.
4. Visit the Migration Department (Dirección General de Migraciones): Submit your application for a carnet de radicación temporal (temporary residency card) or permanent residency (for investment or retirement routes).
5. Medical Examination: Some pathways may require a medical certificate issued in Paraguay.
6. Optional Bank Account: While no longer mandatory since 2022, opening a Paraguayan bank account can be useful for investment or retirement routes.

For Investment Route (SUACE):

• Register a company with the Unified System of Opening and Closing Companies (SUACE).
• Submit your business plan and obtain an Investor Certificate from the Vice Ministry of Industry and Commerce.
• Additional fees of approximately USD 14,000 apply for company formation and registration.

Tips:

• Engage a local immigration lawyer or agency (e.g., NTL Trust, Immigrant Invest, or Studio Panama Italia) to accompany you to government offices, translate documents, and streamline the process.
• Be prepared for potential delays due to high application volumes. Plan for a 10-day stay to account for unforeseen issues.

Processing Time:

• Traditional Route: Temporary residency is typically approved within 90 days.
• Investment Route: Permanent residency can be approved in as little as 20–45 days, though 60–90 days is common.
• Retirement Route: Similar to the investment route, approval takes about 90 days.

Step 5: Obtain Your Temporary Residency Card

Once your application is approved, you’ll receive a temporary residency card (valid for two years) for the traditional route or a permanent residency card (valid for 10 years) for the investment or retirement routes. You must visit Paraguay within six months of approval to collect your card and apply for a Paraguayan ID (cédula).

Process for Cédula:

• Visit the Paraguayan Police Identification Department 2–3 days after submitting your residency application (or on a second trip).
• Provide biometric data (fingerprints, photo) and pay a small fee.
• The cédula is issued within 1–2 days and is valid for two years (temporary residency) or 10 years (permanent residency).

Tips:

• If you leave Paraguay after submitting your application, you can authorize a lawyer to collect your residency card and cédula on your behalf.
• Some agencies offer a “one-trip” option to complete both residency and cédula applications, thanks to 2024 law changes.

Step 6: Convert Temporary Residency to Permanent Residency (Traditional Route Only)

If you pursued the traditional route, you must hold temporary residency for two years before applying for permanent residency. This step requires:

• Visit Paraguay: Apply in person at the Migration Department before your temporary residency expires (after 21 months).
• Submit Documents: Use your Paraguayan ID (cédula) and a Paraguayan police record (legalized in Paraguay, not apostilled). No additional apostilled documents from your home country are needed.
• Processing Time: Approval takes 3–4 months, after which you’ll receive a permanent residency card valid for 10 years.

Physical Presence:

• During the two-year temporary residency period, avoid being absent from Paraguay for more than 12 consecutive months to maintain your status.
• In practice, the Dirección Nacional de Migraciones may not strictly enforce entry/exit records, but it’s wise to visit at least once during this period.

Step 7: Maintain Your Permanent Residency

To maintain permanent residency:

• Visit Paraguay at least once every three years to avoid suspension of your status.
• Renew your cédula every 10 years.
• If you plan to operate a business or access local services, consider registering for a tax ID (RUC), though tax residency is only triggered if you spend more than 120 days per year in Paraguay.

Benefits of Permanent Residency:

• Live, work, and study in Paraguay.
• Access MERCOSUR visa-free travel.
• Lower real estate transaction taxes and easier access to bank accounts and driver’s licenses.
• Path to citizenship after three years, with no requirement to renounce other nationalities (except for Spanish citizens, due to a dual nationality treaty).

Additional Tips for a Smooth Process

• Hire Professional Assistance: Agencies like NTL Trust, Paraguay Pathways, or Immigrant Invest can handle translations, accompany you to government offices, and manage bureaucratic hurdles.
• Language Considerations: While Spanish or Guarani proficiency is not required for residency, basic Spanish can help navigate the process. Consider hiring an interpreter if you don’t speak Spanish.
• Costs: Expect application fees of approximately PYG 1,216,040–1,848,820 (USD 260) for the traditional route, plus USD 14,000 for the investment route (including company formation). Legal and agency fees vary.
• Timing: Start preparing documents 2–3 months in advance to account for apostille and translation processes.
• Cultural Awareness: Paraguay’s immigration offices can experience backlogs, so patience is key. Working with a local expert can mitigate delays.

Path to Citizenship

After three years of permanent residency, you can apply for Paraguayan citizenship by naturalization, provided you:

• Demonstrate basic proficiency in Spanish or Guarani (A1 level or higher).
• Show integration into Paraguayan society (e.g., economic activity or property ownership).
• Have spent at least six months per year in Paraguay during the three-year period (though enforcement may vary).

The citizenship process takes an additional 1–2 years, and successful applicants receive a Paraguayan passport, ranked 70th globally, with visa-free access to 147 countries, including MERCOSUR, the UK, and Schengen countries.

Conclusion

Obtaining permanent residency in Paraguay is a straightforward and affordable process, making it an excellent option for those seeking a low-tax, flexible residency solution. Whether you choose the traditional route, the investment-based SUACE program, or the retirement pathway, careful preparation and professional assistance can ensure a seamless experience. By following this step-by-step guide, you’ll be well on your way to enjoying the benefits of Paraguayan residency, from tax advantages to a relaxed lifestyle in the heart of South America.

For further assistance, contact reputable agencies like NTL Trust (https://ntltrust.com), Paraguay Pathways (https://paraguaypathways.com), or the Dirección General de Migraciones (https://www.mre.gov.py) for official guidance.

Disclaimer: Immigration laws and requirements can change. Always verify the latest regulations with the Paraguayan Migration Office or a qualified immigration lawyer before applying. 

Should you have any questions feel free to reach out to us via email - migrateglobal5@gmail.com