Exploring Paraguay As A Formidable Plan-B Jurisdiction

While you’re reading this, I will be travelling stateside for business, as a partner of mine has invited me to attend an event he is hosting. Even though I despise travelling to the States, I aim to serve, be it my family, partners, clients, team, or even readers of this newsletter. 

If you’ve been following along, you know that Paraguay continues to emerge as one of the most strategic jurisdictions in Latin America for those of us building real, actionable Plan-Bs. But this week, we’re taking it a step further, diving into three areas I believe every freedom-minded investor should understand before deciding where to set up a financial or “legal” camp, so to speak.

We’ll explore why Ciudad del Este is quietly becoming a powerhouse of economic growth, how Paraguay’s tax system still rewards the financially savvy, and what it actually takes to secure legal residency in one of the most underrated (and under-complicated) countries on the map.

This is the kind of intel you won’t find in a Google search or a YouTube video… it’s the result of real boots-on-the-ground experience and conversations I’ve been having behind the scenes with local partners and country insiders every day. 

And because I know many of you are not just reading to learn but rather to act, as always, I have included a unique Deal of the Week offer.

Let’s get right to it!

Ground Zero for Growth: Why Ciudad del Este Is Quietly Becoming Paraguay’s Next Powerhouse

When most people think about investing in Paraguay, their mind goes straight to Asunción, and I understand why; it’s the country’s capital, the political center and home to the largest population hub.

So, yes… it absolutely has its advantages. 

But what if I told you that the real action is happening just a few hours to the east in Ciudad del Este? 

Ciudad del Este is no longer a border town you pass through on your way to Argentina or Brazil. 

Major developers are breaking ground, infrastructure spending is on the rise and local demand for modern housing, mixed-use space, and high-quality commercial zones is climbing fast.

This is being fuelled by a unique mix of cross-border trade, retail/commercial activity, and a young population hungry for their chance to take the next step forward in their lives by moving into their own homes.  

Residential high-rises, like Concept Tower, which we’ve been featuring in past editions of this newsletter, are bringing a whole new level of design and functionality to the rapidly growing skyline, making it an area that is not only great in theory but more modern and visually appealing, too.

And while all this is happening, property values are still far below the regional average. 

That’s what makes this moment so unique. 

The value is really.

The demand is real.

And best of all, things are just getting started, and that is reflected in the prices.

This is a classic case of what I like to call “second-city momentum.” 

Just like Medellín followed Bogotá or Guayaquil followed Quito, Ciudad del Este is growing into its own and early investors are going to be the ones rewarded.

So, if you’ve been looking for a play that’s grounded in real, local demand, connected to cross-border trade, and still offers massive upside, Ciudad del Este is it.

How Paraguay’s Tax System Works in Your Favour

Let’s be honest - legally minimizing taxes is one of the top reasons why my Expat Money clients and I are creating Plan-B options in the first place.

And it’s not because we don’t want to contribute to the greater good of society or our fellow countrymen.

It’s because we don’t want to pay obscene amounts of earnings into a system isn’t serving us well.

For decades, we’ve seen Governments mismanage OUR MONEY to a near-criminal level (to put it nicely), and finally, we’ve had enough.

Simply put, we see OUR MONEY being used to line the pockets of politicians, fund unjust foreign conflicts and be sent overseas to be laundered under the guise of “social programs,”… to name a few.

So, if you’re like me or one of the hundreds of clients I work with daily at Expat Money, you’ve had enough and, thus, just want to hold onto more of what’s yours so YOU can decide how to spend YOUR money. 

Legally paying less taxes is where Paraguay really stands out.

At a time when most countries are ramping up taxation, tightening controls, and expanding enforcement, Paraguay continues to offer a system that’s simple, transparent, and incredibly  friendly to entrepreneurs and investors.

Paraguay runs on a 10% flat income tax. 

Whether you’re a salaried employee, a self-employed contractor, or a business owner, your rate is the same. 

Dividends and capital gains are also taxed at 10%, making the system attractive for both workers and passive investors. 

It’s clean, easy to understand, and, compared to many Western systems, incredibly efficient.

No sliding scales, no complex tiers, no-nonsense. Easy peasy. 

But what really sets Paraguay apart and makes it attractive to those of us who want to legally pay less tax without having to relocate offshore is that Paraguay follows a territorial tax model. 

This means only income generated within Paraguay is subject to taxation. 

Foreign-earned income, such as income generated from running an online business, realizing monthly profit from foreign investment properties or dividend portfolios, is completely tax-exempt. 

If you’re running a location-independent business, drawing income from abroad, or even just managing a diversified global portfolio, Paraguay allows you to earn tax-free while physically remaining where you are without facing a second layer of taxation.

And it gets even better….

There are no wealth taxes, no inheritance taxes, and you don’t need to report your global income. 

In an era where tax codes are becoming weapons and bank accounts are being weaponized, Paraguay offers a tax system that actually respects the individual from the standpoint of privacy and control. 

And here’s the kicker: you don’t need to jump through a ton of bureaucratic hoops to become a resident of Paraguay and, ultimately, a tax resident.

The Paraguay Residency Path – What’s Actually Required (And What’s Not)

Residency in Paraguay is one of the best-kept secrets in the offshore world, but like anything that flies under the radar, there is a lot of confusion online about this topic.

So, let’s clear the air and break it down properly.

If you’re looking to obtain legal residency in a country that offers real benefits without the headaches, without the bureaucracy, and without having to completely uproot your life,  Paraguay should be at the top of your list.

First, the process itself is far simpler and more accessible than most people realize.

You only need a valid passport, a clean background check, and a few standard documents like your birth certificate, for example, to get the ball rolling.

From there, you’ll submit your application in person at the government immigration office with help from a local lawyer (don’t worry, at Expat Money, we’ve got the right team for this).

You do not need to speak Spanish.

You do not need to make an investment or keep a minimum account balance in a local bank.

And you do not need to maintain a full-time home here… unless you want to.

No overreaching demands. No endless documentation. It is just smooth sailing toward becoming a legal resident in a country that actually wants you. 

It’s residency the way it should be - clear, quick, and designed to welcome those who bring value.

And once approved, your status unlocks the full suite of advantages:

You gain access to Paraguay’s tax-friendly system.

You can open a local bank account.

You can own property in your name.

You can register a vehicle, access public services, and live with legal peace of mind.

There’s also a path to permanent residency after just two years and, from there, an optional route to citizenship, with no relocation required.

You move at your pace, on your terms.

I like to think of obtaining legal residency in Paraguay as a Plan-B layer - a legal tool in your arsenal that expands your options and reduces your risk of falling victim to global instability, all while saving you a ton on your tax obligations. 

If you’ve ever said to yourself, “I just want a solid second residency without a bunch of strings attached,”… this is it.

The time to take action and begin putting plans into place is now.

As the world continues to change, jurisdictions like this will only get harder to access.

If you are ready to explore in greater detail what becoming a legal resident of Paraguay would do for yourself, your loved ones, your financial future and your freedoms, I invite you to visit this page to learn more: ExpatMoney.com/Residency-in-Paraguay.

Deal of the Week: An Opportunity Inside Ciudad del Este’s First Residential Community

This is one of the most unique and high-upside opportunities we’ve featured to date. Period.

If you’ve been waiting for the kind of property that ticks all the right boxes like prime location, standout concept, real usability, and long-term growth potential, this is it.

Located just outside the growing urbanization zone of Ciudad del Este, this project blends the natural serenity of the Paraguayan countryside with thoughtful, amenity-rich living.

It’s close enough to the city center that demand for rentals will be strong… especially given the nearby presence of Green Parana’s other hit projects like Concept Tower and Soho, but just far enough out that it gives you (or your future tenants) peace and privacy.

What is truly outstanding about this week’s offer is that it is nestled inside Paraguay’s first and only residential park. 

I am talking about a full-on neighbourhood concept with communal grilling spaces, outdoor yoga areas, and, yes, even a dedicated paddle court (which, for the record, I’ve recently come to love playing with a few of my partners here in Panama).

Residential developments in Paraguay have traditionally been divided into two camps: basic suburban-style homes with no amenities or dense city apartments with limited outdoor space or access to nature.

This project flips that script.

Arbolia is a low-density, amenity-rich community designed with modern tenants in mind: people who value a better quality of life, walkable green space, and social connection without sacrificing access to the city or international schools, hospitals, and other amenities you’d expect to find in more developed areas.

This development is certainly going to attract the types of renters who won’t just fill a unit… they treat it like home. 

And they’ll pay accordingly.

From an investment perspective, that means two things: higher-quality tenants & better long-term returns.

This, coupled with the fact that Ciudad del Este is already on a clear upward trajectory with growing commercial development, increasing cross-border activity, and booming infrastructure growth, owning here will add long-term stability and massive medium/long-term upside to your portfolio.

Whether you’re looking to generate hands-free, turnkey rental income or want a property that allows you to escape winter, diversify internationally, or even relocate full-time under a government that’s not out to squeeze every dime from you, this checks the box.

Arbolia is not a short-term speculator’s flip - this is the kind of property that will appreciate in value year over year, whether you use it or make it available for rent.

…and when the rest of the world catches on, as they eventually always do, you’ll already be holding the keys.

Here are the two options we’ve secured for Paraguay Potential readers this week:

A fully-detached 100m² (1,076 ft²) unit located near the community’s amenities, set to be delivered in May 2026 – $125,000 USD

A semi-detached 80m² (861 ft²) unit with a delivery date of May 2027 – $87,000 USD

Both options follow a straightforward payment schedule:

30% due before groundbreaking (which is happening in just a few weeks, by the way)

5% payments are due quarterly until construction is complete, with the remaining balance paid on delivery of the keys

Though all units are delivered unfurnished, my partner Fernando works closely with a local designer who can work with you to furnish your unit to your liking.

This will generally run you around 10% of the purchase price, as a rule of thumb. I should add they have furnished a number of our client’s units before, and what you get is of far superior quality than the typical “builders grade” furnishings.  

I want to make it very clear that my partners didn’t design this for the market as it exists today…

…they designed it for where the market is going. 

These are the kinds of projects I get excited about because they’re built with foresight into the needs of the market in the years to come, not just what will be desirable today or in the next few years. 

If you want more information about securing one of these units, email my partner Fernando directly at expat@greenparana.com and include “DEAL” in the subject line so he can prioritize your inquiry.

Wait, and you’ll miss out… you know what to do.

Expat@greenparana.com to learn more about our readers-only offers.

ExpatMoney.com/Residency-In-Paraguay to legally pay less taxes.

ExpatMoney.com/Newsletter to subscribe to my other publications.


See you right here in a couple of weeks,
Mikkel