Moving to Paraguay in 2026: is it a good place to live?

Inflation of 1.5% and income tax capped at 10%, yet in dollar terms Asunción has become a third more expensive in eighteen months. Prices, rents, taxes for remote workers, the new residency rules and the Article 150 risk: who gains from moving in 2026 and who does not.

In the twelve months to August 2026, prices in Paraguay rose just 1.5%. That is the third-lowest rate in Latin America after Costa Rica and Ecuador: Argentina ran at 33.5% over the same period, Uruguay at 4.55% and Brazil at 4.22%. Add an income tax that tops out at 10%, investment-grade ratings from Moody's and S&P and 6.6% economic growth in 2025, and it is easy to see why foreigners filed 63% more residency applications in 2025 than a year earlier.

There is a flip side. Since the end of 2024 the guaraní has gained roughly a third against the dollar, so anyone earning in dollars now pays noticeably more for the same flat in Asunción. The government has recognised $1.27 billion of supplier debts that never appeared in its accounts, the state social insurer IPS says it can pay for medicines only until February 2027, and since 6 July 2026 moving to permanent residency without documented income is no longer possible.

Below is what the central bank, the tax authority, the migration service and the rental market say, and what it means for someone earning in dollars. For a general overview see our Paraguay page, and for starting a company read our guide to doing business in Paraguay in 2026.

What is happening to Paraguay's economy in 2026

Paraguay's economy grew 6.6% in 2025, beating the central bank's 6% forecast, and the monthly activity index rose another 5.6% in January-July 2026. In December 2025 the country won its second investment-grade rating, and in January 2026 foreign reserves set a new all-time high.

The figures come from the BCP (Banco Central del Paraguay, the central bank), the MEF (Ministerio de Economía y Finanzas, the finance ministry) and the INE (Instituto Nacional de Estadística, the statistics office). The currency is the guaraní, written ₲ or PYG. In 2026 a dollar buys about 5,870 guaraníes, so ₲1 million is roughly $170.

Sources: MEF and BCP, INE, World Bank. GDP for 2023-2024 is preliminary.

The drop in public debt to 35% of GDP reflects arithmetic rather than repayment: the guaraní strengthened and dollar GDP grew. The debt itself has grown by $1.76 billion since the end of 2025 and reached $22.2 billion in July, about 83% of it external (MEF data).

Inflation below target: imports get cheaper, services do not

The BCP targets 3.5% inflation with a tolerance band of 2 percentage points either way, and in August 2026 inflation sank to the bottom edge of that band. The policy rate, at which the central bank lends to commercial banks, was cut from 6% to 5.5% in early 2026.

The headline figure is misleading, though. In August, according to the BCP, beef, fruit, vegetables and imported durable goods got cheaper, because a strong guaraní makes imports cheaper. Fuel and some services went up, and overall only 32.7% of the items in the consumer basket rose in price. What comes from abroad is getting cheaper, but not everything a newcomer pays for.

By year-end the BCP expects 3.3%, and the EVE (Encuesta de Expectativas de Variables Económicas, the BCP's monthly survey of economists) expects 3%.

A strong guaraní: bad news for dollar earners

At the end of 2024 a dollar bought 7,831 guaraníes, at the end of 2025 it bought 6,576, and on 25 September 2026 it bought 5,873 at the official BCP rate. In eighteen months the dollar lost about 25% of its purchasing power inside the country.

Worked example: a flat renting for ₲5 million a month cost about $640 at the end of 2024. The same guaraní rent now costs about $850, a third more without a single rent increase.

The market expects a partial reversal: the EVE survey puts the dollar at about 6,100 guaraníes by the end of 2026 and about 6,300 in 2027. Even that forecast leaves the rate far from 2024 levels.

Ratings, hidden debts and pressure on taxes

In 2026 Paraguay recognised $1.27 billion of supplier debts that had been left off the books: $1.05 billion for medicines and healthcare and $220 million for public works. As a result the MEF raised its 2026 deficit target from 1.5% of GDP, the ceiling set by the fiscal responsibility law, to 3.2%, and plans 3.9% for 2027. The goal is to get back to 1.5% by 2028.

The rating agencies are calm for now: Moody's affirmed Baa3, the lowest investment-grade notch, on 17 July 2026, S&P rates Paraguay BBB-, and Fitch has BB+ with a positive outlook, one notch below.

But Fitch's conditions for an upgrade matter to anyone moving here for low taxes: reform of the civil servants' pension fund Caja Fiscal, a 1.5% deficit even in election years, and higher tax collection, which is about 13% of GDP against the 23-27% median the agency uses for comparison. Fitch openly calls the 10/10/10 system (10% corporate tax, 10% VAT and no more than 10% personal income tax) a structural constraint. The takeaway: Paraguay's low taxes are a political choice, not a law of nature.

How much does it cost to live in Asunción in 2026

A single person in Asunción spends about $600 a month excluding rent. That is less than in São Paulo ($694), Santiago ($708), Buenos Aires ($899) and Montevideo ($980). But the gap is narrowing as the guaraní rises. One caveat: this is an estimate, there are no official statistics on these costs.

Estimate for 2026; there are no official statistics on these costs.

Rent by neighbourhood: what landlords are asking

We looked at six upmarket districts of Asunción - Villa Morra, Las Carmelitas, Recoleta, Mburucuyá, Manorá and Los Laureles - plus the more modest Sajonia for comparison. We took 21 listings per district on a major listings portal and calculated the median, the price in the middle of the sample. These are asking prices, not transaction prices, and some include expensas, the monthly building service charge.

Source: our count from the first page of the portal's results, converted at the portal's rate of 5,892.65 guaraníes per dollar. Some cells hold only 2-5 listings, so treat this as a guide rather than statistics.

In the best districts a one-bedroom flat costs $650-900, more than the citywide average. In Mburucuyá, Manorá and Las Carmelitas more than half of listings are priced directly in dollars.

There are no official statistics on rent growth, while overall inflation is 1.5% a year. For a detailed guide to districts, transport and daily life see our Asunción page. For comparison there is the border trading city of Ciudad del Este.

Worked example: budget for a single person and a family

This is a guide, not a quote: the lower rent figure is the average for the centre, the upper one is the Villa Morra median.

Private health insurance is not included: there is no open data on plan prices. For comparison, in our analysis of moving to Argentina a single person in Buenos Aires needs about $1,500 and a family about $4,000 without school. Asunción is cheaper, but no longer by multiples.

What are salaries in Paraguay and is remote income enough

Paraguay's minimum wage since 1 July 2026 is ₲3,044,000, about $520 a month. It was raised 5% by Decree 6225/2026 of 17 June 2026. An unofficial estimate puts the average salary after tax at ₲4.23 million, about $720.

Unemployment was 4.1% in the second quarter of 2026, but 61.6% of non-farm workers, about 1.75 million people, work informally: without a contract and without contributions to IPS (Instituto de Previsión Social, the state social insurance fund that runs public hospitals and pensions). On a formal salary the employee pays 9-11% to IPS and the employer adds 16.5-17%. Poverty fell to 16% in 2025 from 19.6%.

The conclusion for a newcomer is simple: the local job market pays little, and looking for work here makes sense only with a scarce skill and working Spanish.

Remote income is another story. Worked example: a specialist earns $4,000 a month from a foreign client, rents a one-bedroom flat in Villa Morra for $849 and spends another $596 on living costs. That leaves about $2,600, more than three average local salaries. But that is before tax.

What taxes does a new resident pay in Paraguay

The most persistent myth about Paraguay is that foreign income is not taxed here. For a remote worker based in Asunción that is wrong: the tax authority has stated plainly that work performed in Paraguay for foreign clients is taxable. The rate, admittedly, is low - 8% to 10%.

Taxes are collected by the DNIT (Dirección Nacional de Ingresos Tributarios, the national tax authority). The main statute is Law 6380/2019 on tax reform.

Sources: Law 6380/2019, DNIT guide to IRP. Net income means revenue minus permitted deductions.

The territorial principle: what is taxed and what is not

IRP taxes only Paraguayan-source income: income from activity in the country, from property located there and from rights used there (Article 48 of Law 6380/2019). What matters is where the work is done, not where the client sits.

The key documents here are consultas vinculantes, rulings on a specific person's case that bind the tax authority itself. The DNIT publishes them on its website without names. In ruling No. 829 of 22 December 2025, an IT consultant planned to work for foreign clients from Colombia and believed his income was untaxed. The answer: work done abroad is not subject to IRP, but the part done from Paraguay is subject to IRP-RSP.

VAT follows the same rule of place. In ruling No. 677 (April 2025) the DNIT held that a translation done in Paraguay for a foreign client is subject to IVA: under Article 84 of Law 6380/2019 what counts is where the service is performed, not where the client lives.

Services performed abroad are also taxed if the client itself pays IRE or IRP in Paraguay (Article 48, point 3). Companies face a further rule: interest on foreign deposits, exchange gains and dividends from foreign companies count as Paraguayan income if the investor is resident (Law 6380/2019). For individuals the law is less explicit, so if you hold large deposits, a portfolio or stakes in foreign companies, Murblz specialists will check the point before you move.

Since 2026 there is also crypto reporting: DNIT Resolution No. 47 of March 2026 requires crypto-asset transactions above $5,000 a year to be reported to the tax authority. More in our article on crypto and taxes when relocating.

Worked example: what a remote worker pays

A developer lives in Asunción and earns $60,000 a year from foreign clients, about ₲352 million. Claiming no deductions, the tax on the scale comes to about ₲33 million, roughly $5,700, an effective rate of about 9.4%.

Deductions change the picture. The law lets you reduce taxable income by personal and family spending inside the country: food, clothing, rent and upkeep of your home, furniture and household appliances, plus healthcare and education. The one condition is that every expense is backed by a document the DNIT recognises, such as an electronic invoice or receipt issued to your tax number. A family living here and keeping its paperwork in order pays less than 9.4%.

Work out IVA separately. Following the logic of ruling No. 677, work done from Paraguay is subject to 10% VAT, and if the foreign client does not pay it on top, the tax comes out of your fee. Murblz specialists will work this out before you sign contracts.

For comparison, Argentina's scale goes up to 35% and Brazil's up to 27.5%.

Tax residency: 120 days or none at all

Paraguayan tax residency is confirmed by a DNIT certificate (certificado de residencia fiscal, the tax residence certificate). The procedure was set by Resolution RG 65/2020. An individual files a cédula, the national identity card a foreigner receives after residency, and a migration record of border crossings. Taxpayers also need a RUC (Registro Único de Contribuyentes, the tax number).

How many days do you need? Law 6380/2019 points to 120: a resident is someone who spends more than 120 days a year in Paraguay. The safer course is to plan on that threshold and a real life in the country.

Crucially, a Paraguayan certificate does not automatically end your residency at home. In Russia, for example, a resident is anyone present 183 days within 12 consecutive months, and a Paraguayan document does not override that. Paraguay has few double tax treaties: with Chile, Taiwan, the UAE, Uruguay and Qatar. There are none with Russia, Ukraine, Belarus or Kazakhstan. More on day-count rules in our article on tax residency and the 183-day rule.

Home-country reporting, CRS and data exchange

If you remain tax resident in your home country, you still declare your income and foreign accounts there under its rules. Paraguay's territorial principle does not change that. Owners of foreign companies should also look into controlled foreign company rules in advance.

Tax data exchange already exists and is widening:

• The Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAAC) has been in force for Paraguay since 1 November 2021 and covers periods from 2022: another country's tax authority can ask for data on a specific person.
• Paraguay does not yet apply the CRS (Common Reporting Standard, the OECD standard under which banks send data on foreigners' accounts once a year to the country where the client is tax-resident). It pledged to implement it by 2027 at the plenary of the OECD (Organisation for Economic Co-operation and Development) Global Forum in Asunción in November 2024. Under CRS rules, data for the first year of reporting reaches partner countries the following year.
• The DNIT and the banking association ASOBAN have agreed to cross-check bank data, with a shared system expected by mid-2027.
• FATCA (Foreign Account Tax Compliance Act, the US law on reporting accounts of US citizens and tax residents): a Model 2 agreement with the US has been agreed in substance and treated as in effect since 30 June 2014 (US Treasury). Paraguayan banks report on American clients directly to the US tax authority, the IRS.

The absence of automatic exchange does not remove your duty to declare foreign accounts and income in the country where you are tax-resident. Paraguay is not the place for keeping accounts out of view. More in our article on accounts outside CRS in 2026, and a full tax overview is on our Paraguay taxes page.

How to get residency in Paraguay in 2026

Temporary residency in Paraguay costs a government fee of about $500, and you do not have to prove income to get it. The next step is where it got tougher: since 6 July 2026 you can move to permanent residency only with documented income, while investors can now get permanent residency straight away.

Residency is granted by the DNM (Dirección Nacional de Migraciones, the national migration directorate). The governing statute is Migration Law 6984/2022. DNM fees are set in jornales: a jornal is the minimum daily wage. From 1 July 2026 one jornal equals ₲117,077, about $20 (Decree 6225/2026 and DNM Resolution 478/2026).

Sources: DNM, Law 6984/2022, DNM Resolutions 407/2026 and 478/2026, MIC.

Demand is at record levels: in 2025 the DNM received 47,687 applications (+63% on the year) and about 40,000 foreigners received residency. In the first quarter of 2026 alone 14,275 permits were issued, 2.1 times more than a year earlier. Brazilians, Argentines and Germans receive the most (DNM data).

How the application works, step by step

1. Documents from home. Birth certificate, proof of civil status and a criminal record certificate from your country of citizenship or wherever you lived for the last 3 years, apostilled or legalised.
2. Entry. Russian and Ukrainian citizens need no visa; entry terms for Belarusians and Kazakhs are below.
3. Certificates in Paraguay. Interpol and Paraguayan National Police clearances, plus two declarations generated by the DNM system: one on respecting the Constitution and one on your occupation and address.
4. Filing with the DNM. In person only, paying 25 jornales. The result is a residence card (carnet de residencia). The DNM publishes no official processing times.
5. Cédula, RUC and bank. With the card you apply for a cédula at the National Police identification department, then a RUC and a bank account.
6. Living in the country. The DNM may cancel temporary residency if you spend more than a year in a row abroad without good reason, and permanent residency after more than 3 years in a row (Article 55 of Law 6984/2022).
7. Switching to permanent. File before temporary residency expires. Temporary status can also be extended for another 2 years, DNM head Jorge Kronawetter has explained.

What DNM Resolution 407/2026 changed

DNM Resolution 407/2026 hits those who spend two years on a temporary card without setting anything up in Paraguay. For applications filed from 6 July 2026, financial means must be documented under one of 12 categories: remote worker, pensioner, property owner, shareholder, student and others. Spouses and dependent relatives can rely on the breadwinner's income. Income must be real and the activity demonstrable. The rules for MERCOSUR nationals and for Law 6984/2022 applicants are now the same.

The DNM sets no specific income threshold. But for professionals and freelancers the resolution expressly requires IVA returns for the last 3 months or the IRP return for the last year showing actual money flows: empty filings do not prove income. Our advice: from the first month, keep your income in a form you can document two years later - through a RUC, contracts, bank statements and tax returns.

Investor Pass: permanent residency at once, but with a high threshold

MIC Resolution 0283/2026, adopted in April 2026, gives investors permanent residency without two years of temporary status. First the MIC issues a Constancia de Inversionista Extranjero (CIE, foreign investor certificate), then the DNM grants permanent residency. Criminal records and a sworn declaration on the origin of funds are checked.

The cheapest entry is $70,000 in industry, trade or services, but with five formal jobs. Without hiring, the threshold is almost three times higher: $200,000 in property or financial instruments, and securities must be held for at least two years. The investment must be individual: partners cannot pool money to reach the threshold, Industry and Trade Minister Marco Riquelme has said. More on all routes on our Paraguay residency page, and on buying property in real estate in Paraguay.

Paraguayan citizenship: timelines, the exam and the Article 150 risk

The usual path to a Paraguayan passport takes about five years, or from three via the Investor Pass, and at the end of both lie a court, an exam in Spanish and a constitutional article that can strip new citizens of their nationality. Paraguay does not sell passports.

The sequence, as described by DNM director Jorge Kronawetter (4 May 2026): temporary residency for up to 2 years, then permanent residency, at least 3 years on it, then an application to the Supreme Court. The Constitution itself, in Article 148, requires at least three years of residence in the country. Naturalisation is decided by the Supreme Court, and the fee is symbolic: ₲43,051, about $10.

The exam covers Paraguay's history, geography, civics and Constitution, and is taken in Spanish. The pass mark is 21 out of 30 (Poder Judicial, the Paraguayan judiciary). There are no official statistics on how long the court takes; in practice it is 12-24 months.

Now Article 150. A naturalised citizen loses Paraguayan nationality by voluntarily acquiring another one, or by living abroad for more than 3 years without good reason, if a court so declares. Article 149 allows multiple nationality only under international treaties based on reciprocity; one such treaty is in force with Spain, for example. If you are collecting passports, for example an Argentine one as well, plan the order in which you acquire them before you file in court. More in our articles on dual citizenship in 2026 and what an Argentine or MERCOSUR passport gives you.

What the passport offers: visa-free entry to the Schengen area for 90 days in 180 and the right to live in MERCOSUR residence agreement countries on simplified terms. It does not give visa-free entry to the United States. All stages are on our Paraguayan citizenship page. If a child is on the way, see Paraguayan citizenship by birth.

How to open a bank account and move money to Paraguay

Almost every Paraguayan bank opens a personal account only against a cédula. So the order is fixed: residency first, then the cédula, then the bank. Among banks for foreigners, the most often named are ueno (which merged with Visión Banco in 2024), Itaú and Continental.

Holding dollars is normal here: almost half of the country's deposits are in foreign currency. Source-of-funds checks, however, are real, and during audits the tax authority can obtain account movement data from banks.

There is no public data on how banks treat Russian and Belarusian passport holders or transfers from Russia: each bank decides for itself. Be ready to explain where your money comes from - see our article on source of funds. For help with accounts see personal account in Paraguay and business account in Paraguay.

Is Paraguay safe to live in

Paraguay recorded 391 homicides in 2025, or 6.1 per 100,000 people. That is about a third of the Latin American median (17.6), a third of Brazil's rate (19.2) and well below Uruguay's (10.3). Among the neighbours only Argentina (3.7) and Chile (5.4) are lower.

Serious violence is mostly targeted, from contract killings of politicians and prison staff to hits on drug bosses. For ordinary residents theft matters more. In the first quarter of 2026 the 911 service received reports of 2,153 home burglaries, 862 attempted burglaries, 854 motorcycle thefts and 1,058 robberies. These are figures for Asunción; the area covered is not officially specified. Ahead of the municipal elections on 4 October 2026 there was a wave of robberies and an attack on a mayoral candidate in Ypané.

The US State Department keeps Paraguay at Level 1, its lowest advisory, but advises more caution in the north of the country and along the border with Brazil, where drug traffickers operate.

Healthcare: the IPS crisis and private plans

IPS is in crisis in 2026: its debt to pharmaceutical companies rose to $384 million in July 2026 from $323 million in August 2025. Then IPS head Isaías Fretes admitted that money for medicines will last only until February 2027, and medicine shortages have already occurred. In September 2026 Fretes became health minister and Derlis León took over IPS.

A newcomer should plan on private healthcare. The terms are visible in the contract for one local insurer's Premium plan: a $120,000 limit per claim, a 6-month wait for conditions declared at purchase and at least 12 months for cancer, chronic kidney and liver disease, and maternity covered only after 360 days. Abroad there is only travel insurance (seguro de viajero), with no other foreign cover. The takeaway: keep international insurance or a cash reserve for serious cases.

Climate, electricity and internet

Heat is Asunción's main everyday problem. On 19 February 2026 the city reached 41.5 °C, while the previous record for that date, 39.6 °C, had stood since 2006 (DMH data, Dirección de Meteorología e Hidrología, the national weather service).

Power bills may rise too. A study backed by the Inter-American Development Bank proposed raising the residential tariff of ANDE (Administración Nacional de Electricidad, the state power company) by 39.4% over 2026-2030. ANDE has not decided yet.

Internet is a bright spot: the median fixed broadband speed is 160.6 Mbps. Mobile is slower, about 27.4 Mbps.

Schools

An international primary school in Asunción costs about $5,800 a year on average, with a range from $2,280 to $10,180. For a family with two children this is the biggest expense after rent.

Moving to Paraguay from Russia, Ukraine, Belarus and Kazakhstan

In the first quarter of 2026 Russians received 194 Paraguayan residence permits, eighth among all countries, just behind the French (DNM data). The DNM does not publish separate figures for Ukraine, Belarus or Kazakhstan.

• Russia. Visa-free stays of up to 90 days in 180 under an agreement in force since 20 October 2014 (kdmid.ru). There is no double tax treaty.
• Ukraine. Visa-free stays of up to 90 days under a 2009 agreement. There is no tax treaty either.
• Belarus and Kazakhstan. Ask an expert about the entry terms for these passports.

In the 1920s White Russian émigrés linked to General Ivan Belyaev settled here, and an Orthodox Church of the Protection of the Virgin still serves Asunción. Ukrainian colonies appeared in the late 1920s in the department of Itapúa, centred on the city of Encarnación. The German-speaking community is even more visible: German citizens received 651 residence permits in the first quarter of 2026 alone, and Mennonite colonies live in the Chaco. There are no reliable figures on how many Russian speakers live in the country today.

Frequently asked questions about life and citizenship are collected in Paraguay: 10 popular questions, and a comparison with other destinations is in where to move from Russia in 2026.

Pros and cons of living in Paraguay

Paraguay in 2026 combines model macroeconomics with weak public services.

Who should move to Paraguay and who should not

Paraguay beats its neighbours on low inflation, low taxes and a cheap entry into residency. Healthcare and comfort you pay for yourself.

A good fit for:

• remote workers and entrepreneurs with hard-currency income who are ready to pay up to 10% tax and document their income from the first month;
• investors with a real project from $70,000 who are willing to hire five people - Investor Pass is built for them;
• people who want residency in South America and a passport in about five years;
• families willing to pay for a private clinic and an international school in exchange for stable prices and low violent crime;
• retirees with a provable pension, with a caveat on healthcare: private plans impose waiting periods and the state insurer is in crisis.

Not a good fit for:

• anyone expecting zero tax on remote income: work done from Paraguay is subject to IRP;
• anyone who wants status without living in the country: temporary residency can be cancelled after a year away, and permanent residency requires proven income;
• those who count on strong public healthcare or cannot cope with heat above 40 °C;
• passport collectors not prepared to plan the order carefully because of Article 150;
• anyone seeking privacy for their accounts: data exchange under the MAAC convention already works, and automatic CRS is due by 2027.

Paraguay, Argentina, Brazil, Uruguay or Chile: which to choose

Paraguay's inflation is 22 times lower than Argentina's, living costs excluding rent are a third lower than in Buenos Aires, and its top income tax rate is about a third of Brazil's. But each neighbour has its own trump card.

Sources: national central banks and statistics offices, Uruguay's tax authority DGI, national migration agencies.

For a big city and culture there is Argentina and Buenos Aires, but with tax on worldwide income. For a large market, Brazilian residency makes more sense (see our analysis of moving to Brazil). Uruguay offers a tax holiday on passive income but is the most expensive, while Chile gives three years' relief on foreign income. Paraguay wins on permanently low tax, stable prices and cheap access to residency.

Pitfalls of moving to Paraguay

The most common mistake is assuming nothing changes in Paraguay. In 2026 alone the permanent residency rules changed, Investor Pass appeared and fees went up.

• The exchange rate works against dollar income. If the guaraní keeps strengthening, your dollar budget rises without a single price increase.
• Taxes may rise. Fitch and the IMF point to low tax collection, and the deficit for 2026-2027 is planned at 3.2-3.9% of GDP against a 1.5% ceiling.
• Document your income from day one. You will need paperwork to prove it for permanent residency. And if you take a tax payment plan, interest on it has been 1.4% a month since 1 September 2026 (Decree 6478/2026).
• A bank account takes time. Without a cédula almost no bank will open a personal account, so expect to live on foreign cards and cash for the first months.

Only a real address and genuine documents

You sign the declarations on your occupation and address yourself, and for permanent residency the DNM now checks whether your activity is real. Give the address where you actually live, submit only genuine certificates and state the true purpose of your trip at the border. False information can cost you a refusal and jeopardise both permanent residency and the future naturalisation, which a court decides.

Our services in Paraguay

We handle relocation from the first tax number to the passport. Representation before the DNM, the tax authority and the courts is handled by Murblz specialists together with locally licensed partners. The main services are below.

Plus the formalities where people most often get stuck: apostilles and police certificates, the cédula, the RUC, a lease. If you are looking at buying a home or an income-producing asset for Investor Pass, see real estate in Paraguay, and for legal support see our legal support section.

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