In 2025, Paraguay recorded a historic surge in residency applications, confirming its growing role as an alternative destination for international relocation, tax planning, and long-term residence.
According to official migration data reported by major national newspapers such as El Nacional and La Nación, residency applications increased by approximately 50% year-on-year, reaching record levels and surpassing the total number of applications filed in the whole of 2024 already by October 2025.
Comparing 2024 and 2025
The numbers clearly show a structural trend rather than a temporary spike.
In 2024, Paraguay received approximately 29,000 residency applications in total.
By October 2025 alone, applications had already reached more than 38,000, representing an increase of over 31% compared to the whole of 2024.
By the end of 2025, total applications are estimated to have exceeded 43,000, marking a year-on-year growth of around 50%.
Both temporary and permanent residency permits rose sharply, with temporary residency remaining the most commonly requested option.
Residency issuances also increased. Official data from the National Directorate of Migration show that Paraguay issued 36,263 residence permits in 2025, up from 28,464 in 2024.
The 2025 total ranks as the third-highest annual number of residencies issued since 2019, below the totals recorded in 2023 and 2022.
Who Is Applying
While neighbouring countries continue to represent a substantial share of applications, the profile of applicants has become increasingly international.
The main nationalities applying for residency in 2025 include:
- Brazil (by far the largest group)
- Argentina
- Germany
- Bolivia
- Spain
- United States
- Netherlands
- Venezuela
- Russia
- Colombia
Particularly notable is the steady growth in applications from European nationals, especially from Germany, Spain, and the Netherlands.
This reflects Paraguay’s transition from a primarily regional migration destination to a country attracting globally mobile individuals.
What Is Driving the Surge
Paraguay offers one of the easiest paths to legal residence in the world. Compared to Europe or North America, the immigration framework is straightforward, especially for temporary residency.
Procedures move faster, bureaucratic requirements remain minimal, and no minimum investment applies to the initial temporary permit.
From a tax perspective, Paraguay applies a territorial taxation system that increasingly attracts internationally mobile individuals.
The country taxes domestic-source income at a flat rate of 10%, while foreign-source income falls outside Paraguayan taxation. Income generated abroad typically escapes the Paraguayan tax base, provided it does not originate locally.
Compared to European marginal tax rates, many perceive this system as highly competitive, particularly for individuals with international income streams.
Political and macroeconomic stability adds to the appeal. Observers widely regard Paraguay as one of the more stable jurisdictions in the region, with a conservative fiscal approach and a relatively predictable institutional framework. For individuals seeking long-term certainty, this stability plays a key role.
In addition, Paraguay offers a path to citizenship. After three years of permanent residence, individuals may apply for naturalisation, subject to effective residence, integration, and judicial approval. For some applicants, citizenship is a long-term strategic consideration rather than an immediate goal.
Residency Options
Temporary residency remains the most widely used entry mechanism. Applicants must be physically present in Paraguay to submit their application, and the permit lasts two years. Holders can then convert it into permanent residency.
Alternatively, applicants may obtain permanent residency directly through the SUACE investment program, which requires an investment of approximately USD 70,000, typically linked to business or productive activities. This route allows applicants to bypass the temporary residency phase.
Individuals become eligible for citizenship after maintaining permanent residency for at least three years, subject to compliance with statutory and factual requirements.
Tax Residence Considerations
Certain profiles increasingly view Paraguay as an attractive jurisdiction for establishing tax residence, particularly individuals with foreign-source income, international business activities, and a flexible geographic lifestyle.
However, changing tax residence is never a purely local decision. Before relocating, it is essential to assess exit rules in the country of departure, potential exit taxes, the treatment of existing assets, income flows, substance requirements, and the risk of dual residence or continued ties.
A Paraguayan residency can be highly effective, but only if it is integrated into a broader, well-structured international tax and legal plan.
The Bigger Picture
The sharp rise in residency applications in Paraguay in 2025 reflects a broader global trend. Individuals are increasingly reassessing where to live, work, and be taxed.
Paraguay is no longer a niche destination. It is emerging as a serious option for globally mobile individuals, provided that the move is carefully planned and professionally structured.
IMI Pros Who Can Help with Paraguayan Residency
