Today, we are talking about Paraguay as an alternative in 2024. We are going to focus on people who can particularly benefit from living in Paraguay.
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Read moreParaguay for retirees
The traditionally largest group includes individuals with a fixed and location-independent income, such as retirees.
When moving to Paraguay, the pension remains the same, but the cost of living decreases significantly. In simple terms, you get much more quality of life for your money in Paraguay.
With a monthly income such as a pension in Eur or USD of around 1,500 per month, it is often difficult to make ends meet in most western countries such as the European Union or the united states.
In Paraguay, this corresponds to an income of about 12 million Guaranies, which is what a local employee would earn in about 5 months.
As we can see, one can live comparatively well and may even afford a maid or help around the house in Paraguay.
Paraguayans are also very friendly and open to foreigners, making it not too difficult to make new friends and often even find partners.
If, in addition to the pension, one has capital from, for example, selling a house, then this money can be invested in Paraguay.
Paraguay for investors
Returns of 10-12% per year are achievable with fixed-term deposits or bonds. For real estate investments in the greater Asuncion area, even better returns are possible due to appreciation. More information on investing in Paraguay can be found in our book “Investor’s Guide to Paraguay”.
Profiting from the high returns in Paraguay as an investor works for all age groups. Even if someone does not want to permanently live in Paraguay, there are numerous opportunities to invest money profitably and safely in Paraguay. This also protects your assets from trouble that may or may not arise in your home country.
Paraguay as Plan “B”
This brings us to the next group that can benefit from moving to Paraguay . Those who have lost their blind faith in the goverment and may want to have a “Plan B” for themselves and their family. A place where they can always travel to in case of a crisis in the home country.
Getting a residence permit in Paraguay is relatively easy and offers additional rights without having to give up your current passport. You don’t even have to live permanently in Paraguay. In the beginning, one visit per year is sufficient, and later, even a visit every 3 years is enough.
Paraguay as tax residency
The next group who will benefit from Paraguay consists of people who travel a lot or earn their money over the internet, such as digital nomads. Paraguay is an attractive tax residence for this group.
Paraguay is a low-tax country but not a “tax haven” and is not on any “blacklist.” This has significant advantages for invoicing to corporate clients in the EU/USA.
Paraguay also follows a territorial tax system, leaving foreign income not related to Paraguay tax-free. It is crucial to understand that, to enjoy these benefits, one must give up their residence in the home country. If your primary residence is in an EU country you will continue to be taxable there. For individuals earning money online, like freelancers or permanent travelers, Paraguay becomes a tax paradise.