BEWARE of SCAMS
It is always a dilemma to highlight bad practices.
On the one hand, it is important to report problematic situations so that they can be avoided, but on the other hand, we don’t want to give the impression that Paraguay is a dangerous place.
Paraguay is not the Wild West. It is a country governed by the rule of law—imperfect but functional—and it is improving year by year.
However, there are a number of expatriates who behave in a less than honorable manner, and some who knowingly commit acts that would be considered abuse of weakness in Europe.
If you encounter the situations described below, it is healthy to be suspicious…
And when in doubt, run away!
There are enough good and honest service providers who will be able to help you.
To assess the professionalism of a service provider
How many people are on the service provider's team?
If there are more than three persons for the same foreign language, the service provider takes an “industrial” approach.
You will be just one number among many.
Time will be limited.
In the event of an anomaly or difficulty, you may be left in the lurch.
If the service provider is an expatriate, has/had he another professional activity?
If the service provider is an expatriate, how long has he been in Paraguay?
Has/had he have another job in Paraguay?
Having another professional activity shows that he is integrated into Paraguay and not a settler who could live anywhere else.
The process for obtaining residency papers is quite standardized.
But for more sophisticated services, it is important to know if the service provider knows what he is talking about.
You don’t want a service provider who has only found this to do in Paraguay, or else…
Did the service provider carry out the procedure for himself? On what occasion?
Having done things for yourself means that you have delved into the details.
(Or having been trained and obtained a diploma.)
This is what makes the difference between a standardized service and a high-quality personalized service.
Does the service provider take care of you during your first trip?
Being taken care of during your first trip is important. Especially with a family.
(That’s the downside of lawyers who only deal with procedures.)
Do ask lots of questions about the support provided, addresses, and the program.
I’ve never heard of anyone being ambushed on arrival.
But you could be left in the lurch if you don’t like the support conditions once you’re there. Better safe than sorry.
Does the service provider give you the addresses of free information websites?
There are many free sources of information that will enable you to carry out many procedures yourself, once you are fluent in Spanish and have time to spend locally.
In particular: https://expat-paraguay.top/
If the service provider does not give you anything, it is because they want to control the information in order to better control you.
Does the service provider's communication focus more on problems in your country of origin than on life in Paraguay?
A service provider is not there to convince you to come to Paraguay.
Nor to play on your fears to get you to buy his services.
He is there to inform you and support you in your project.
Does the service provider post a lot of videos on the internet?
The best providers operate by word of mouth and/or take the time to make personalized written comments on social media.
Bad providers post lots of videos.
This shows a desire to work in an « industrial » manner.
And a desire to avoid interaction with the customer.
In a video, the density of information is low.
Critical thinking is diminished because the viewer is led by the hand.
The goal is to create an emotional state that is conducive to purchasing.
A few videos are useful, but when video is the basis of communication…
Something doesn’t add up if…
The service provider offers packages with several procedures.
Be careful if you start to see this kind of practice.
- Laws change literally overnight in Paraguay, without prior warning. Service providers cannot guarantee the successful completion of a set of procedures that will take more than six months.
- These packages include procedures that are unnecessary and sometimes even harmful to your interests.
- In a few months, you will have gained enough experience to carry out these procedures yourself. If this is not the case, you will need to ask yourself the right questions about your plans for living in the country.
The service provider wants to sell you recurring services.
Here too, start to be suspicious.
There is no recurring procedure that requires the service provider to remain involved over time.
Only large law firms can claim to have other in-house expertise. (E.g., accounting and taxation.)
Other providers outsource and
- You will pay a high price.
- You will not know who will actually do the work.
- Nor how: well or poorly done, honestly or not.
- Completing the service can become a problem.
You are clearly putting yourself at risk.
The service provider does not give you the documents as they are generated.
A good service provider does not keep by himself any documents relating to the procedure.
The opposite is not normal.
If you are unable to obtain the documents:
- you cannot verify their content
- you are dependent on the service provider
- If things go wrong, you will have a very difficult time completing the procedures. You will probably have to start all over again, because the deadlines will have expired.
The service provider does not appear to have the in-house expertise for the service being sold.
Same as for recurring services.
If the service provider subcontracts:
- You will pay the full price.
- This opens the door to cronyism and shady dealings, or even criminal acts involving you.
- You no longer have any control.
- Ending the relationship becomes difficult, as it impacts all other services.
- And it relieves you of your responsibility for integrating into the country.
Really not the thing to do.
The service provider offers expedited procedures.
The laws governing immigration and cédula procedures are clear and very well done.
They are publicly available on the internet.
There are no fast-track procedures. This does not exist.
Yes, as everywhere else, through connections, a file can be placed at the top of the pile.
But this is exceptional and not for everyone.
When it is openly sold as an automatic procedure, it is the result of “arrangements.”
This should clearly be avoided.
Your papers could even be considered fake if internal procedural steps have not been followed due to haste.
The service provider offers to collect the final documents on your behalf.
Some procedures allow this and others do not.
You need to check this carefully.
For example, for the cedula, the last step is to activate the card’s chip. Your fingerprints will need to be taken to be entered into the chip.
A cedula without an activated chip is not valid. This will cause you trouble.
And you must agree on a secure method of shipping these documents. Do not let the provider keep them until your next trip.
The service provider requires you to sign a power of attorney.
Granting power of attorney is a serious matter in Paraguay.
If it is poorly drafted, the representative can do anything and everything, and you will be liable.
Granting power of attorney is not a matter of convenience. It must be a necessity.
For standard procedures, there should never be a need for power of attorney. It is a question of organization.
And if a power of attorney is really necessary, it must be clearly defined:
- nature of the actions permitted by the power of attorney: execution of tasks or negotiation
- operations concerned mentioned precisely, with reference document attached
- limited period of validity
- inability to transfer the power of attorney to a third party
- method of revoking the power of attorney.
If the service provider offers to be the representative for a power of attorney, as a fallback solution, why not?
But only in exceptional circumstances.
Be very suspicious if the service provider becomes insistent on obtaining power of attorney.
- This means that they have not done their job properly and that we are now in an emergency situation
- Or that they have hidden motives.
The service provider wants to open a tax identification number (RUC) for you.
A RUC is opened with the help of an accountant. And you’ll need to be physically present once at the SET (tax office).
Opening a RUC initiates fiscal residency in Paraguay.
There are consequences both in Paraguay and your country of origin.
So, it shall be done only if mandatory.
A service provider has nothing to do in this process, except to point to a reliable third-party accountant.
On the contrary, a service provider may create real problem situations, as he is no fiscal expert (except law firms with in-house fiscal expertise).
If the service provider is willing to open a RUC for you, it is most likely that he is selfishely trying to sell you related accounting and tax advisory services.
Or worse, if you entrust him blindly with the managemen of your tax account, he may use your account for illegal transactions to their advantage . Be careful, it happens in real life!
The service provider wants to open a tax identification number (RUC) for you.
A RUC is opened with the help of an accountant. And you’ll need to be physically present once at the SET (tax office).
Opening a RUC initiates fiscal residency in Paraguay.
There are consequences both in Paraguay and your country of origin.
So, it shall be done only if mandatory.
A service provider has nothing to do in this process, except to point to a reliable third-party accountant.
On the contrary, a service provider may create real problem situations, as he is no fiscal expert (except law firms with in-house fiscal expertise).
If the service provider is willing to open a RUC for you, it is most likely that he is selfishely trying to sell you related accounting and tax advisory services.
Or worse, if you entrust him blindly with the managemen of your tax account, he may use your account for illegal transactions to their advantage . Be careful, it happens in real life!
The service provider quickly offers to search properies for you or become your property manager.
It is not surprising that a service provider who knows the real estate market would offer to find you interesting properties to buy.
BUT
They should not offer this before your long-term plans in Paraguay are well established.
- On the one hand, they should not push you to put the cart before the horse. First secure the short term, then build for the long term.
- On the other hand, it is not healthy for the service provider to manage several procedures simultaneously. If a problem arises, you lose everything.
The service provider must work by the hour and not on commission. Otherwise, there is a conflict of interest. They will want to force your hand on a property. If they are paid by the hour, things are clear. (But much less interesting for the service provider…)
If the service provider introduces you to someone to do this, take the time to check his reputation. There are some really unsavory characters in expat communities.
Paraguay is a small country, so skeletons always come out of the closet. Just don’t rush into anything.