Citizenship in Paraguay is much sought after. But there’s a lot of misinformation out there about becoming a citizen of Paraguay. Here’s what you need to know.

About Paraguay

Paraguay is a land locked country, located in South America. It’s bordered by Argentina to the south and southwest, Brazil to the east and northeast, and Bolivia to the northwest. It is located in the heart of the continent, in a region known as the Gran Chaco. The population of Paraguay is approximately 7 million people.

The official language of Paraguay is Spanish which is spoken by the vast majority of the population. There are also a number of indigenous languages spoken in the country, including Guarani, which is an official language alongside Spanish.

Paraguay has a mixed economy with a large informal sector. It’s known for its production of soybeans, cotton, and corn. It’s also a major producer of hydroelectric power. Its main export partners are Brazil, Argentina, and China.

The culture of Paraguay is a blend of indigenous, Spanish, and other European influences. The country has a rich tradition of music and dance, and traditional instruments such as the harp and the guitar are an important part of the culture. Paraguay also has a strong tradition of folk art, and handicrafts such as ceramics and basketry are widely produced and sold.

Paraguay is a Tax Haven for Most People

Paraguay had no income taxes until 2004. Sadly they started taxing income from sources in Paraguay after that. It still has one of the lowest tax rates in the world. The maximum tax rate in Paraguay is 10%. There’s no income tax on what you earn outside Paraguay. It has a system of territorial tax, so only income earned in Paraguay is taxed. Therefore, anyone moving to Paraguay with sources of income outside the country will pay no tax there.

Paraguay’s Passport and History

Paraguay has a solid passport. It offers visa free travel to 141 countries and it’s ranked number 35 in the top passports in the world. Paraguay’s passport offers visa free travel to the EU and the UK. It’s also one of the fastest countries to get citizenship. There are no downsides to the Paraguayan passport such as military service or worldwide taxation.

Citizenship in Paraguay by Naturalization

Citizenship by naturalization is the most popular way to get citizenship in Paraguay. After only 3 years of being a legal resident in Paraguay you can apply for citizenship. You must spend at least 6 months every year in Paraguay during those 3 years.

There are many fake reports around about people getting a residency in Paraguay, never spending time there and going back 3 years later and successfully  applying for citizenship. This is not possible. There are also people online selling instant citizenship of Paraguay. This is not possible wither. You should stay away from anyone making these claims. You’re likely to end up with a fake document and could even end up behind bars. This happened to Brazilian soccer star Ronaldinho, who was jailed after entering Paraguay with a fake Paraguayan passport. He was also fined $200,000.

Citizenship in Paraguay by Birth

In common with most countries in the Americas, anyone born in Paraguay is a citizen at birth. The nationality of the parents doesn’t matter. If you’re born in Paraguay you’re a citizen. The foreign parents of a Paraguayan citizen will be able to get permanent residency in Paraguay and then citizenship after 3 years.

Citizenship in Paraguay by Marriage

Unlike other countries in the region, there’s no discount available on the time spent in Paraguay for those married to a citizen of Paraguay. You must live in Paraguay for 3 years to get citizenship. You’ll be able to get residency based on your marriage to a Paraguayan.

Conclusion

Paraguay has a lot to offer prospective residents and citizens. People moving from Europe or North America will find more personal freedom here. It’ll be a tax haven for most people as their income will be coming from overseas. Even if you’re earning money in Paraguay the taxes are low. Paraguay is part of Mercosur. Mercosur is South America’s free trade zone. Citizens of other Mercosur countries can get instant residency in other Mercosur countries. The full members of Mercosur are Argentina, Brazil, Paraguay and Uruguay.

Citizenship in Paraguay is not difficult to obtain if you spend the time living there. There are no downsides. It’s an underrated citizenship in a little known country. Anyone interested should get on a plane to Asuncion and explore further.

Citizenship in Paraguay video summary

Paraguay citizenship requirements include having been a legal resident for 3 years and spending at least 6 months in Paraguay every year.

Paraguay citizenship by marriage is accepted but only after spending 3 years in the country.

Paraguay citizenship benefits include the Paraguay passport and residency benefits in Mercosur countries.

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