As remote work becomes the new norm, countries around the world are opening their doors to digital nomads with enticing residency options. Paraguay, a landlocked gem in South America, is quietly gaining traction among location-independent professionals looking for a low-cost, stable, and tax-friendly base Paraguay Residency. If you’re eyeing Paraguay as your next remote work destination, here’s what you need to know about qualifying for digital nomad residency in 2025.
Why Paraguay?
Paraguay offers a unique blend of affordability, relaxed lifestyle, and financial freedom. It boasts one of the lowest costs of living in Latin America, political stability, and a territorial tax system — meaning you’re only taxed on income earned within Paraguay. For digital nomads earning from clients or employers outside the country, this often results in zero local income tax liability.
The country’s permanent residency program has traditionally been popular among expats, and in recent years, Paraguay has made it easier for remote workers to consider long-term stays through updates in its immigration policies.
Residency Pathways for Digital Nomads
While Paraguay does not currently have a dedicated “digital nomad visa,” remote workers can still qualify for permanent residency, which functions similarly to nomad-friendly programs in other countries.
As of 2025, you can apply for permanent residency in Paraguay by meeting the following general requirements:
- Proof of Financial Means: You must show that you have sufficient financial resources to support yourself in Paraguay. This is usually done by depositing a minimum amount in a Paraguayan bank account. Previously, the required deposit was around $5,000 USD, but this amount can vary, and alternatives such as proof of consistent remote income may be accepted.
- Clean Criminal Record: You’ll need to provide a police clearance certificate from your home country or countries where you’ve lived recently.
- Medical Examination: Applicants may need to pass a basic health check as part of the process.
- Birth Certificate and Passport: A valid passport and legalized birth certificate are required to establish identity and citizenship.
Once granted, Paraguayan permanent residency allows you to live, work, and do business in the country indefinitely. Unlike many digital nomad visas that have one- or two-year limits, Paraguay’s residency has long-term appeal.
Remote Work and Territorial Taxation
One of the most compelling reasons digital nomads choose Paraguay is its tax structure. Paraguay taxes only local-source income. If your income is generated entirely outside Paraguay (such as freelance work for foreign clients or remote employment for a company abroad), you’re not subject to Paraguayan income tax. This is a major advantage compared to countries with worldwide taxation systems.
Life as a Digital Nomad in Paraguay
Paraguay is often overlooked in South America, but its capital, Asunción, offers fast internet, modern amenities, a growing coworking scene, and a welcoming expat community. Smaller cities and towns provide an even more relaxed lifestyle, with opportunities to immerse yourself in local culture and natural beauty.
Spanish is the official language, so having a working knowledge of it is helpful, although many locals are patient with foreigners and increasingly exposed to English.
Final Thoughts
In 2025, qualifying for Paraguay’s digital nomad-friendly residency is not only possible but also relatively straightforward compared to many other countries. With low costs, favorable tax policies, and a permanent residency option that doesn’t force you to jump through bureaucratic hoops every year, Paraguay is becoming a smart choice for remote workers seeking stability and freedom.
If you’re ready to set up a base in South America and embrace a new lifestyle without sacrificing financial flexibility, Paraguay might just be your next move.