Is Paraguay an Immigration option ?
Paraguay an Immigration: Paraguay is usually overlooked as an emigration option but it does have just about everything that you might need for the active agriculture investor. There are thousands of hectares of empty land available for livestock or agriculture, plus most importantly in a world running out of water, its sits atop one of the world’s greatest freshwater aquifers. It is called the Guarani Aquifer which is shared by Argentina and Brazil.
Paraguay also boasts the largest hydroelectric facility in the world with an annual capacity of roughly 90 TWh; they use only a tiny fraction and export more than 85% to neighboring Argentina and Brazil. It is called the Itaipu Dam
Paraguay’s economy has benefitted from rising commodity prices and overall regional growth… and despite the government’s occasional left-leaning saber-rattling on behalf of the rural poor, politicians generally tend to stay out of the way.
It is the fourth largest exporter of Soybeans in the world and the major exporter of rice in Latin America.
Paraguay’s tax burden (as a percentage of GDP) is among the lowest in the world at around 12%, the same as Hong Kong. It’s 28% in the US and averages 35% among OECD members. For this reason, Paraguay is a mini tax haven… but not on anyone’s radar.
Paraguay’s individual income tax (first established in 2010) is only 10%; it affects only the higher income earners, and it only applies to income sourced within Paraguay, not worldwide income.
Here’s the truth– establishing a second residency overseas can be a great idea; it ensures that you have a place to go should you ever need to leave your home country, and it can even lead to an eventual second passport. Note: “second residency” doesn’t necessarily mean that you have to live there permanently.
Paraguay are ideally suited for a second residency. Why? Because of the country’s political stability, energy and agricultural sustainability, low tax environment, and straightforward immigration procedure.
Here is a short summary of Paraguay’s immigration procedure:
1) Obtain necessary documents from your home country, including a clean police report, birth certificate, marriage/divorce certificates as applicable. All need to be certified by the Paraguayan consulate that oversees the document’s issuing jurisdiction.
You’ll also need to provide a bank reference letter, and, depending on your passport (US, Canadian, Australian, New Zealand), a tourist visa to Paraguay.
2) Travel to Asuncion and submit your application in person. Among other things, this requires establishing a local bank account with at least $5,500. Local bank rates are currently around 4% in USD, up to 12% in local currency. You’ll also need a medical screening and various other requirements on the ground.
3) The permanent residency application takes up to 4-months to be approved, though it can be much less if you use a well-connected facilitator.
4) After three years as a permanent resident, you are entitled to apply for naturalization.
Clearly there are a lot more details and many situations that must be reviewed on a case-by-case basis. For example, do you hold a different citizenship as your country of birth? Do you require proof of funds? These may impact the situation.
As with most things, immigration procedure in Paraguay is all about who you know. The right contacts in Paraguay really streamline (NOT circumvent) the process.
Contact the Gateway to South America team to learn about the best investment opportunities in the region. The company is a benchmark for foreign investors wishing to invest in Argentina, Brazil, Chile, Paraguay, Peru and Uruguay, providing expert advice on property acquisition and investment tours.