Residency in Paraguay and Uruguay: Quick and Affordable Shelters in a Storm
IMI Official Partner
A few weeks ago, IMI Founder Christian Nesheim wrote an insightful piece detailing why a bulletproof mobility portfolio should contain a Western Hemisphere allocation.
Nesheim acutely highlighted the factors that make Latin America an immaculate component to consider as part of a broader residency and citizenship portfolio. With internal food and power self-sufficiency, solid economic frameworks, and the overall disinclination to wage continuous wars, Latin America checks all the right boxes when it comes to establishing a second – or emergency – home.
Building on what Nesheim wrote, we are taking it a step further; we are naming names, highlighting some of the best destinations to consider in Latin America, namely Paraguay and Uruguay, and underlining what specific circumstances make each one perfect for any given person.
Paraguay: The ultimate Plan B
When it comes to contingency planning within the realm of residency by investment, a person must consider a cornucopia of elements. The key to a solid global mobility portfolio should follow Pareto’s Law, choosing a vital few options to produce the highest benefit.
The country, the program requirements, and the investment all play the most significant roles. With enough forethought and intricate planning, an investor can create a robust global mobility Plan B that provides maximum benefits with the least effort.
It is here that Paraguay enters the fray as the optimal Plan B option in Latin America. The country itself is blossoming; its infrastructure is well-balanced, its economy is expanding thanks to the government’s ability to target critical sectors in the region and on the global stage, and its political stability and ability to get along with foreign nations have molded Paraguay into an automatic starter in any holistic global mobility portfolio.
Paraguay is self-sufficient in all the areas that matter. It is the 11th biggest electricity exporter worldwide with a focus on renewable energy, it has massive underground water reserves, and it ranks among the top ten global beef exporters, meaning that it can internally sustain its food and power supply.
Paraguay also has a stably growing economy with no exchange or currency controls. The government provides inhabitants premium financial privacy by not levying any CRS reporting on bank or brokerage deposits.
The Latin American country is also highly tax-friendly, taxing corporate and personal income at a meager 10%, while capital gains, inheritance, global income, and wealth are not subject to any taxes.
Finally, the culture, pleasant climate, laid-back lifestyle, and delicious cuisine make it an excellent destination for tourists and residents alike, which are good elements to have in any Plan B.
But the country of Paraguay isn’t the only attraction, as it has two fantastic residency programs that are simple, attainable, affordable, and – most importantly, in a time of crisis – lightning quick.
The first option is normally dubbed the Traditional Route, which allows anyone to travel to Paraguay and apply for a residence permit based on their intention to practice their profession or establish a business in Paraguay.
The Traditional Route awards applicants with a two-year temporary residence permit, and, if they are true to their word, they can apply for permanent residence at the end of that period. To do so, they must have left an imprint highlighting how they have become active members within the Paraguayan community, either by establishing a business, purchasing real estate, working, or otherwise. This can easily be done with the assistance of NTL Trust‘s local team in Asuncion.
The second option is a residency by investment program known as the SUACE Route. Under the SUACE, an applicant directly receives a ten-year permanent residency card bypassing the temporary residence period, and all they have to do to maintain it is invest US$ 70,000, spread throughout the ten years. However, the investment allocation must make sense, and we typically advise our clients to structure it in a way that is financially logical to them and the Paraguayan government, even if they may go over the required amount a bit.
Both options are quick, taking just a few months to process, and they both do not have any physical residence requirements, making Paraguay the ultimate Plan B destination.
That those who decide to reside in Paraguay can apply for citizenship after three years of living there as tax residents makes it even better because, if the need arises to activate a contingency plan, it should lead to citizenship quickly, and Paraguay emphatically checks that box.
Uruguay: The ultimate Plan A when you forgot a Plan B
Commonly referred to as Latin America’s Switzerland, Uruguay is a magnificently stable country led by a highly democratic government – ranked 13th globally on the democracy index – with good relationships within the continent and abroad.
Uruguay’s excellent living standard, growing economy, and unique lifestyle make it a prime destination for those looking for a second home. It is one of the most touristic nations in the continent, a testament to its cheerful lifestyle, magnificent natural scenery, and affordable living costs.
What is equally important, though, is how easy and quick it is to get a residency permit in Uruguay if the need arises. The Latin American country allows visitors to stay up to six months a year on entry, and those who want to stay more permanently can apply for its highly affordable and straightforward independent means visa.
By proving that they have sufficient income, a person can apply for the Uruguayan independent means visa that provides them with a two-year temporary residence permit which ends with permanent residency if they reside in Uruguay.
Processing times are as short as ten days. The income requirement depends on the family composition but remains highly competitive, as a married couple will require an income of about US$ 2,500. Residents can apply for citizenship after living as tax residents for five years in Uruguay (or just three years if they are a married couple).
The swift processing times and simple requirements make Uruguay the best Plan A for people without a Plan B. Those who need another place to stay but do not have a contingency in place can take advantage of Uruguay’s program until they can set up their global mobility framework, or until the crisis that made them leave their home has passed.
Uruguay offers a safe, beautiful, and affordable host nation for those who need one, and getting a residence permit is as simple as can be, which is why it should be on the minds of everyone plagued by living in a country on one of the extremes of the global political spectrum.
The Western Hemisphere is plentiful
Paraguay and Uruguay are both excellent options with different situational benefits, but the Western Hemisphere offers a plethora of options for investors and digital nomads.
Some options may suit some people more than they do others, so the best way to ultimately decide on how to plan and structure your global mobility portfolio for maximum benefit is with the help of NTL Trust.
NTL Trust’s vast experience in the world of investment migration, coupled with its on-the-ground teams situated in critical regions of the globe, will help you understand your situation, choose the best suite of global mobility options, and pursue them efficiently. All you need to do is contact us today through our website to talk to one of our experts.