Frequently asked questions
Why Paraguay and not somewhere else?
Based on cold, factual criteria:
Filter the 200 or so countries in the world with even half of the following criteria and you will see that there is only one country that passes the test: Paraguay.
- food independence
- energy independence
- obtaining a permanent residence permit, without major restrictions or financial contribution
- lower cost of living than in your country of origin
- low taxation
- high-quality healthcare system
- similar culture and language;
- ability to blend in with the crowd.
political stability - rule of law
- no nuclear risk
and in terms of quality:
Paraguay is just a good place to live.
Paraguayans are exceptionally kind and caring.
If you show that you are making an effort to integrate, they will do everything they can to help you.
The weather is warm and sunny.
The food is excellent.
Paraguay is a small country in terms of population. Common sense prevails among the elites, who have known each other for a long time.
The country offers great entrepreneurial freedom and business opportunities.
Life is much less stressful than in the USA or Europe.
The only things missing are the sea or the mountains, but they are just a plane ride away in neighboring countries.
Is Paraguay a dangerous country?
In general, the country is one of the safest in Latin America; clearly safer than some areas in the USA or Europe.
Violent crime is rare.
Drug-related crime is relatively low and confined to certain neighborhoods.
Crime tends to be opportunistic “chicken robbery”.
The average monthly salary in Paraguay is around €300.
It is therefore wise not to ostentatiously display goods that represent several months’ wages for the average Paraguayan.
Be reasonably vigilant in the street and do not venture into certain districts of the capital and suburbs. (Find out beforehand.)
But as in any large city in the USA or in Europe.
Is corruption a problem for foreigners?
International studies show that Paraguay is one of the most corrupt countries in the world.
But this is not the reality of everyday life.
Of course, a small bribe will sometimes help things run more smoothly.
But this is less and less frequent.
The current President of the Republic has shown a real desire to fight corruption, particularly in government departments.
Strong action has been taken and attitudes are changing.
In fact, most corruption is linked to certain import-export activities.
The average citizen does not see it on a daily basis.
May I find a job and work in Paraguay?
YES, legally.
BUT:
the difficulty for foreigners is that the average salary is €300 per month. This is not enough for a foreigner to live on.
You would need around €1500 per month to live in the comfortable conditions to which we are accustomed.
With few exceptions, you should not consider paid employment locally, but either open a company or earn your income from abroad.
Is the health system good?
The state system is very inexpensive, even free, but basic.
Three leading private companies offer high quality health services.
And even superior quality to Europe or the USA, in the sense that there are few waiting times which make adequate treatments useless due to exceeded deadlines.
The cost of these private companies remains significantly lower in comparison to Europe or worse the USA.
Many expatriates wait to return to Paraguay for certain types of care: opticians, dentists, scanners and MRIs, etc.
Is the education system good?
Outside the capital, the education system is basic.
In the capital, there are some very good public schools that are in high demand, as well as private schools, but they are expensive.
The education is of high quality up to the end of high school.
Higher education is comparable to Europe only in a few fields.
Is the Paraguayan tax system favorable?
Certainly.
Everything at 10%!
- Income tax (no brackets).
- Tax on capital gains on securities.
- VAT.
- Corporate tax.
Income earned abroad is not taxable in Paraguay.
The VAT paid on everyday purchases is even tax deductible!
HOWEVER, it is therefore advisable to be very rigorous when changing tax residence.
We strongly advise you to consult a tax advisor in your country who SPECIALIZES in Paraguay.
Is the cost of living high?
No.
It is between 30% and 60% lower than in the USA in the capital and even less in the provinces.
A family can live properly on $1500 per month and very comfortably on $2000 per month.
But you have to be careful not to do all your shopping in the places for foreigners and rich Paraguayans.
Don’t forget that 10% of the Paraguayan population has an income equivalent to that of a European.
Is it easy to obtain a residence permit?
Technically speaking, the procedure is well designed, but requires rigor to the “comma”. The administrations are very picky, but it works very well.
There are two stages:
- the temporary residence of two years, which is obtained almost automatically if the procedure is done correctly.
- the “permanent” residence of ten years at the end of the 2 years.
Permanent residence is subject to an examination of the applicant’s situation. In principle, you must contribute to the country:
- either by having set up a company
- or by having higher education qualifications.
- or as a pensioner with an income of more than €1500 per month.
Another procedure exists with permanent residence from the outset, but it is impractical. It requires an investment of at least 70,000 USD, but above all the hiring of 5 Paraguayans.
After a few years, it is possible to apply for Paraguayan nationality, in which case the residence permit is no longer necessary.
The most difficult stages are in fact when obtaining the various documents with apostille in your country of origin.
Can administrative procedures be completed alone, without assistance?
YES, you can complete the administrative procedures on your own
BUT PROVIDED
- that you speak Spanish fluently
- that you have studied the entire procedure carefully; where, when and how to collect the documents needed for the final file
- that you have several weeks ahead of you in Asunción.
.
The devil is in the details.
The documents must be provided with precision and consistency down to the last comma.
And in the event of an anomaly, you will need to understand and be able to correct it quickly, otherwise the deadlines will be extended from days to weeks, or you may even have to re-submit everything from scratch because the validity of a single document in the file will have expired.
Real-life examples:
- A certificate of “good character” for a foreigner was no problem, except that the nationality of the person concerned was not mentioned, despite a computerized procedure.
- An Interpol certificate had been stamped, but not signed “in series” by the person in charge.
- A city of birth was not the same between two documents, because a merger of municipalities had taken place in the meantime.
Do not count on the officials to help you and make up for your shortcomings.
- On the one hand, it’s not their role. On the contrary, it can backfire on them if you complain about subsequent problems.
- On the other hand, they deal with dozens of files a day. They will quickly turn you away, especially if your Spanish is insufficient.
If you do not reside full-time in Paraguay, you need to plan on spending three weeks in Asunción, to be on the safe side.
This should also be taken into account in the total actual cost.
There are numerous testimonials on social networks from people who have successfully completed the procedures on their own. Few indicate the conditions under which they succeeded.
And there are none from those who came asking for help in a panic…
Our added value is therefore:
- Our knowledge of the procedure. Where, when and how to collect the various documents quickly.
- Knowing how to detect anomalies before the files are submitted to the administration.
- Our ability to meet deadlines of a few days.
We have the utmost respect for civil servants and they are aware that we are trying to make their work easier.
They are generally willing to help us free of charge to correct the rare anomalies that may remain.
They know that we will do it quickly and that the file can be taken from their waiting pile.
They won’t do it with a complete stranger. That’s understandable.
What is the CEDULA used for?
The cédula is the Paraguayan identity card.
It is proof of identity, not nationality.
The cédula is required for many everyday tasks, particularly to open a bank account.
If you want to spend time in Paraguay, it will quickly become indispensable.
May a foreigner buy real estate in Paraguay?
YES, legally, without major restrictions or the need for permanent residence.
BUT in practice:
1. A purchase will be difficult without a local bank account for payments. And opening an account requires a Cédula, which means at least a temporary residence permit.
2. If you are married, the type of wedding contract will have an important influence and must be compatible with Paraguayan law.
3. Although the procedures for purchasing and transferring ownership of real estate are well-established and work well, certain scams are still possible.
The notary has a central role in foiling the scams.
If the notary does not do his job completely AND at the right time (not out of dishonesty, but rather out of laziness or lack of rigor), the crooks can succeed.
All notaries are not (by far) equal. You have to know what to look out for to avoid very unpleasant surprises.
May a foreigner establish a company in Paraguay?
YES, legally.
BUT without a residence permit, being the manager will be very complicated or even impossible. Particularly in relations with banks.
Owners will have to nominate a trusted Paraguayan third party.
The main difficulty is actually opening a bank account for the company. You have to show your credentials and good contacts are important.
How do I transfer money to live in Paraguay?
Several channels are possible with fees of between 2 and 7% (!):
- local banks’ ATMs allow you to withdraw money with an international credit card up to 1,500,000 Gs (around €180) per day and per card.
- companies such as Remitly and Moneygram allow you to transfer sums of around €3,000 per month without too much difficulty.
- International bank transfers are possible, but you will need a local bank account, i.e. a residence permit and a cédula. You will also need to provide proof of the origin of the funds. The procedures are unpredictable in terms of both duration and successful outcome.
Here too, good contacts can help solve problems.