FAQ
Frequently Asked
Questions
Everything you need to know about Paraguay tax residency.
How long does the Paraguay tax residency process take? +
The full process typically takes 60 days. It requires two trips to Asunción of approximately 5 business days each. ConnectUP coordinates everything from document preparation to accompanying you on both trips.
Do I need to live in Paraguay to maintain tax residency? +
No. Temporary residency requires just one visit per year. Permanent residency requires one visit every 36 months. There is no minimum days-in-country requirement.
Will Paraguay tax my foreign income? +
No. Paraguay operates on a territorial tax system. Only income generated within Paraguay is taxed at a flat 10% rate. All foreign-sourced income — remote work, freelance, dividends, capital gains from foreign assets — is 100% exempt.
How much does Paraguay tax residency cost with ConnectUP? +
Our packages start from $2,000 USD, which includes government and consular fees, document preparation, accompaniment on both trips, company and RUC setup, and 30 days of post-residency support. Contact us for a personalized quote.
What is the RUC and do I need it? +
The RUC (Registro Único del Contribuyente) is Paraguay's tax identification number. It is required to open a bank account, issue invoices in Paraguay, and obtain your SET fiscal residency certificate. ConnectUP includes RUC registration as part of the process.
What is the SET certificate and why does it matter? +
The SET (Subsecretaría de Estado de Tributación) certificate is the official fiscal residency certificate issued by Paraguay's tax authority. It is required by banks, brokers, and cryptocurrency exchanges to prove your tax domicile. It requires an active RUC and up-to-date tax filings.
Can I keep my assets and investments in my home country? +
Yes. Stocks, real estate, bank accounts, and investments in your home country remain yours. You simply operate as a non-resident for tax purposes in your origin country, following the applicable fiscal exit rules.
Do I need to close my company or MEI in Brazil? +
Solo entrepreneurs (MEI) and individual firms typically need to be closed or converted. LTD, S.A., and partnerships can generally be kept. ConnectUP and its legal partners will advise you based on your specific structure.
Is Paraguay tax residency legal? +
Yes. Paraguay tax residency is a treaty-compliant, internationally recognized legal mechanism. It is based on Paraguay's territorial tax system, which has been in place for decades. ConnectUP works with licensed Paraguayan attorneys throughout the process.
Can I open a bank account in Paraguay? +
Yes. Once you have your cedula, you can open accounts at Paraguayan banks in both USD and Guaraní. ConnectUP assists with bank account opening as part of the post-residency support.
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