🇵🇾 Retire in Paraguay

Tax rates, cost of living, special programs, and top cities for international investors and retirees.

Tax System Overview

Paraguay has a territorial tax system — foreign income is completely tax-free. Local income is taxed at a flat 10%. No wealth tax, no inheritance tax. One of the simplest and cheapest tax systems in the world. Residency is straightforward with a bank deposit of ~$5,500.

  • Foreign investment income is tax-free (territorial system)
  • No wealth tax

What Would You Pay?

Estimated annual tax on different levels of investment income (capital gains + dividends + interest):

Annual Investment IncomeEstimated TaxEffective Rate
$50,000$00.0%
$100,000$00.0%
$200,000$00.0%

Assumes 60% capital gains, 25% dividends, 15% interest. Actual tax depends on your specific income mix.

Top Cities in Paraguay

Tax rates and programs are subject to change. Information is current as of 2026. Always consult a qualified tax professional before making relocation decisions.