Paraguay Residency Scams: How to Avoid Fraud

By Paraguay Sovereign Team • • 11 min read
✓ Updated January 2026

Quick Answer:

Paraguay residency scams are common because the process is easy, prices are opaque to foreigners, and oversight is limited, with six main scam types including phantom fees, credential fraud, and abandonment. Protect yourself by verifying agent credentials, asking 15 key verification questions, and recognizing red flags like upfront payment demands without contracts or communication through personal accounts. If scammed, file reports with Migraciones, the Ministerio Público, and the bar association (if lawyer involved).

Scam Protection Facts

6

Common Scam Types

Phantom fees, credential fraud, abandonment, etc.

15

Verification Questions

Essential questions to ask before hiring

🚩

Red Flags to Watch

Warning signs of potential scammers

✓

Protection Strategies

How to verify and avoid fraud

Paraguay Residency Scams Are Common

Thousands of dollars have been lost by unsuspecting applicants. Scammers exploit the fact that most foreigners don't know the real process or market prices. Read this guide before hiring anyone.

⚠️ Legal Disclaimer:

This guide is for informational and educational purposes only and does not constitute legal advice. While we've researched these scam types extensively, individual situations vary. Always consult a licensed attorney before taking legal action. Paraguay Sovereign is not liable for decisions made based on this information.

Scam Prevention Guide Contents

Why Scams Exist in Paraguay Residency

Paraguay residency is one of the easiest in the world. This attracts both legitimate providers and scammers.

Why Paraguay is a Scam Magnet

Result: Scammers operate with impunity, targeting vulnerable foreigners.

Who Gets Scammed?

Anyone can be a victim, but most common targets:

Don't let this be you. Arm yourself with information.

The 6 Most Common Paraguay Residency Scams

Scam #1: The Incomplete Residency Card Scam

How It Works:

Agency quotes very low price ($800-$1,500). They process your residency application and give you the residency card (carnet). But they deliberately leave out the Cédula (Paraguayan ID card).

Without the Cédula, your residency is essentially useless. You can't open bank accounts, sign contracts, or prove permanent residency for most purposes.

When you ask for the Cédula, they demand another $2,000-3,000 or disappear entirely.

Red Flags:

  • Price significantly below market ($800 vs $2,000-3,000)
  • Vague about what's included ("residency package")
  • Contract doesn't specify BOTH carnet AND cédula
  • Mentions only "residency card" without clarifying which one

How to Avoid:

  • Ask explicitly: "Does this include BOTH the carnet (residency card) AND the cédula (ID card)?"
  • Get it in writing
  • Research what complete residency includes (carnet + cédula + certificate)
  • If price is suspiciously low, assume incomplete service

✅ What COMPLETE residency includes:

  1. Temporary residence card (carnet temporal)
  2. Permanent residence card (carnet permanente) - after 3 years
  3. Cédula (Paraguayan ID card)
  4. Certificate of residence

All legitimate providers include ALL of these. Scammers omit the cédula.

Scam #2: Lowball Pricing with Hidden Fees

How It Works:

Provider quotes $800-1,200 (well below $2,000-3,000 market rate). You think you found a bargain.

What they don't tell you: The low price only covers basic consultation and initial paperwork. Everything else costs extra:

  • "Oh, translation costs $300 extra"
  • "Government filing fee is $400 extra"
  • "Lawyer appearance fee is $500 extra"
  • "Notary costs $200 extra"

By the time you're done, you've paid $3,500-4,500 (MORE than honest providers charge).

You're exploited via sunk cost fallacy: You've already paid $1,200 and invested time. You feel obligated to continue rather than start over.

Red Flags:

  • Price 30%+ below market
  • Won't provide itemized breakdown
  • "All-inclusive" claim but vague on specifics
  • Contract says "additional fees may apply"

How to Avoid:

  • Demand comprehensive itemized quote showing ALL costs
  • Ask: "What's NOT included in this price?"
  • Get 3-4 quotes from different providers to know market rate
  • Anything under $1,800 total should raise suspicion
  • Get written guarantee: "Total cost not to exceed $X"

Scam #3: The Bait and Switch

How It Works:

Similar to #2, but fees are added during the process (not disclosed upfront at all).

Example timeline:

  1. Week 1: Quoted $1,800 total. You pay $900 deposit.
  2. Week 3: "We need $300 for Migraciones filing" (not mentioned before)
  3. Week 5: "Document verification costs $250" (surprise)
  4. Week 7: "Lawyer appearance fee is $400" (never mentioned)
  5. Week 9: "Cédula processing costs $600 extra" (bait and switch)
  6. Final cost: $3,350 (nearly double the quote)

You're stuck because you've already invested $900 and time. They know you'll pay rather than abandon everything.

Red Flags:

  • Very low initial quote
  • Vague contract with escape clauses
  • Verbal promises not in written contract
  • No detailed list of inclusions/exclusions
  • Reluctance to specify final total cost

How to Avoid:

  • Get DETAILED written quote listing every service and cost
  • Ask: "Is this final or can it increase? Under what circumstances?"
  • Get in writing: "Total cost guaranteed not to exceed $X"
  • Insist on milestone payments tied to deliverables (not upfront deposit)
  • If new fees appear mid-process, demand written justification or walk away

Scam #4: The Fake Investment Scheme

How It Works:

Scammer claims investment is required for Paraguay residency.

"Invest $50,000-100,000 in our Paraguay real estate/agricultural project and get residency included FREE!"

The truth: Standard Paraguay residency has NO investment requirement. You only need to deposit $5,000 in a local bank (refundable after you get residency).

Your "investment" goes to a fake company, bad investment, or the scammer's pocket. Residency never materializes (or you could've gotten it without the investment).

Common Variations:

  • "Buy $75,000 of farmland and get residency"
  • "Invest $100,000 in our import/export business"
  • "Purchase a condo in our development ($60k+) for guaranteed residency"

Red Flags:

  • Linking residency to investment or property purchase
  • Claiming investment is "required" (it's not)
  • Pressure to invest quickly
  • Can't get residency without the investment
  • Investment opportunity seems too good to be true

How to Avoid:

  • Know the law: Standard residency requires NO investment
  • Only requirement: $5,000 bank deposit (refundable)
  • Residency and investment should be SEPARATE decisions
  • Never buy property or invest just to get residency
  • If they claim investment is "required," they're lying

✅ Actual Paraguay residency requirements:

  • Police background check (from home country)
  • Birth certificate
  • $5,000 deposit in Paraguay bank (refundable)
  • Passport
  • Application forms

That's it. No investment. No property purchase. No business creation required.

Scam #5: Express Processing Fraud

How It Works:

Scammer promises "30-day express processing" for extra fee ($500-1,500 additional).

Reality: There is NO official express processing for Paraguay residency. Migraciones (immigration office) processes applications in order received. Typical timeline: 60-90 days.

You pay extra for "express" service. Nothing happens faster. They pocket the money.

Why This Scam Works:

  • Foreigners are impatient, want residency quickly
  • Willing to pay premium for speed
  • Can't verify claims (don't speak Spanish, can't call Migraciones)
  • Scammer blames "delays" on government, not themselves

Red Flags:

  • Promising 30-day completion (realistic is 60-90 days)
  • Offering "express" or "priority" processing for extra fee
  • Claiming they have "special connections" at Migraciones
  • Guaranteeing specific timeline

How to Avoid:

  • Know the timeline: 60-90 days is normal
  • There is NO official express processing
  • Don't pay extra for "speed"
  • Be suspicious of 30-day promises
  • Accept that some things take time

Scam #6: The Phantom Agent

How It Works:

The simplest and most brazen scam: Take the money and disappear.

Scammer poses as residency facilitator online (Facebook groups, expat forums, WhatsApp). Requests payment upfront (often 50-100% of fee). Once paid, they:

  • Stop responding to messages
  • Block you on WhatsApp
  • Close fake social media accounts
  • Vanish entirely

You have no recourse. No physical office. No real name. No refund.

Common Victim Profile:

  • Hired remotely (never met in person)
  • Paid via Western Union, crypto, or wire transfer (irreversible)
  • Paid 100% upfront (no milestone payments)
  • No written contract (or vague one)
  • Found provider in Facebook group or random WhatsApp contact

Red Flags:

  • No physical office (or won't let you visit)
  • Requests 100% payment upfront
  • Only communicates via WhatsApp/Telegram
  • Insists on cash, Western Union, or crypto payment
  • No verifiable past clients or testimonials
  • Refuses video call
  • Pressure to pay immediately

How to Avoid:

  • NEVER pay 100% upfront
  • Insist on milestone payments (25% deposit, 50% mid-process, 25% completion)
  • Visit physical office before paying anything
  • Verify provider is real (Google their name, check reviews)
  • Speak with past clients (ask for references)
  • Video call to verify they're real person
  • Use payment methods with buyer protection (credit card if possible)
  • If they pressure you to pay NOW, walk away

Don't Be the Next Scam Victim

Now that you know the common scams, work with a provider who operates with complete transparency. We put everything in writing, offer milestone payments, and give you our lawyers' names upfront.

See Our Transparent Pricing Ask Us Anything (Free)

What You SHOULD Pay for Paraguay Residency (2026)

Knowledge is power. Here's what residency actually costs:

Government Fees (Unavoidable)

Document Costs

Service Fees (Facilitator/Lawyer)

This is where prices vary. 2026 market rates:

💡 Tip: Scroll horizontally to see full table on mobile

Service Level Service Fee Total Cost What You Get
DIY $0 $500-900 You do everything yourself
Budget Facilitator $1,000-1,500 $1,200-1,800 Basic service, local provider
Mid-Range $1,500-2,000 $1,800-2,500 Full service, English support
Premium $2,000-3,000 $2,500-3,500 White-glove service, concierge
US-Based Agency $3,000-5,000 $3,500-5,500 US company with Paraguay partners

Red Flag Pricing

  • Under $1,000 total: Unless DIY, this is suspiciously low. Likely scam or hidden fees.
  • Over $5,000 for single person: Overpriced unless includes extras (relocation services, housing assistance, etc.)
  • Vague pricing: "Contact us for quote" with no range given
  • Won't itemize: Refuses to break down costs

Safe range: $1,800-3,500 for single person with legitimate facilitator/lawyer.

15 Questions to Ask Before Hiring Anyone

Use this checklist to vet providers:

  1. What's included in your fee? (Demand detailed list)
  2. What are the government fees? (Should be ~$350-400)
  3. What's YOUR fee vs government fees? (Should separate them)
  4. Can I pay in milestones? (Should say yes. Never 100% upfront.)
  5. What's your refund policy? (Should have one in writing)
  6. Who is your Migraciones lawyer? (Should name them. Verify lawyer exists.)
  7. Can I speak with past clients? (Should provide 2-3 references)
  8. What if my application is delayed? (Should explain process)
  9. What if application is denied? (Should explain appeals, refund policy)
  10. Are there additional fees that might come up? (Should say no, or specify exactly what)
  11. How long have you been doing this? (2+ years ideal, 6+ months minimum)
  12. How many clients from my country have you helped? (Should have specific number)
  13. Can I visit your office? (Should say yes and provide address)
  14. What happens if I leave Paraguay during processing? (Should explain - usually okay)
  15. What's included vs what I do myself? (Should clarify your responsibilities)

If they can't answer these questions clearly and confidently, walk away.

Download our Agent Evaluation Checklist PDF (free) for a printable version.

Red Flags vs Green Flags

🚩 RED FLAGS (Run Away)

  • ✗ 100% payment required upfront
  • ✗ No physical office / won't let you visit
  • ✗ Can't name their Migraciones lawyer
  • ✗ No client references or testimonials
  • ✗ Suspiciously low pricing (under $1,000 total)
  • ✗ Unrealistic timelines (30 days)
  • ✗ Guarantees approval (no one can guarantee)
  • ✗ High-pressure tactics ("pay today or lose spot")
  • ✗ Won't provide written contract
  • ✗ Adds fees during process (not disclosed upfront)
  • ✗ Poor communication / slow responses
  • ✗ No refund policy
  • ✗ Requires investment or property purchase
  • ✗ Won't itemize costs
  • ✗ Only accepts cash/crypto/Western Union

✅ GREEN FLAGS (Good Signs)

  • ✓ Physical office you can visit
  • ✓ Transparent itemized pricing
  • ✓ Milestone-based payments (not 100% upfront)
  • ✓ Responsive (24-48hr response time)
  • ✓ Realistic timelines (60-90 days)
  • ✓ Written contract with clear terms
  • ✓ Client testimonials (verifiable)
  • ✓ Names lawyer (you can verify independently)
  • ✓ Provides client references
  • ✓ Clear refund policy in writing
  • ✓ Educational content (blog, guides)
  • ✓ Explains what they DON'T do (honest limits)
  • ✓ Honest about challenges / timeline
  • ✓ Professional website with contact info
  • ✓ Accepts bank transfer / credit card

Rule of thumb: If you see 3+ red flags, don't hire them. If you see 10+ green flags, they're likely legitimate.

What to Do If You've Been Scammed

If you've already paid and suspect scam:

Immediate Steps (Do Now)

  1. Stop all payments immediately
  2. Document everything:
    • Email correspondence
    • WhatsApp messages (screenshot before they delete/block)
    • Receipts / payment confirmations
    • Contract (if any)
    • Promises made (verbal or written)
  3. Demand refund in writing
    • Email formal refund request
    • Set 7-day deadline
    • State you'll pursue legal action if not refunded

If No Refund (Escalate)

  1. File complaint with Paraguay authorities:
    • Dirección de Defensa al Consumidor (Consumer Protection) - can file online
    • Your country's embassy in Paraguay - report the scam
    • US Embassy (if American) - Consular services can assist
  2. Report to:
    • Paraguay police (file report)
    • Expat forums (warn others - name the scammer)
    • Google Reviews / Facebook (leave warning)
  3. Consult Paraguay lawyer:
    • Can pursue legal action
    • Small amounts may not be worth cost
    • Large amounts ($3k+) may justify lawsuit
  4. Credit card chargeback (if applicable):
    • Contact card issuer immediately
    • Dispute as "services not rendered"
    • Provide documentation
    • Time-sensitive: Most cards allow disputes within 60-120 days

Prevention is better than cure.

Recovery is difficult, expensive, and often unsuccessful. Your best defense is not getting scammed in the first place. Do your due diligence BEFORE paying.

How Paraguay Sovereign Does It Differently

We wrote this guide because scams hurt everyone in the industry. Transparency builds trust.

Our Transparency Commitment

✅ Itemized Pricing

See exact breakdown on /services page

✅ Government vs Our Fee

Clear separation (govt ~$400, our service fee stated separately)

✅ Milestone Payments

Never 100% upfront (25% deposit, 50% mid, 25% completion)

✅ Physical Office

In Asunción - you can visit before paying

✅ Named Lawyers

You'll meet our Migraciones lawyers in person

✅ Client Testimonials

Real people, verifiable (LinkedIn, references available)

✅ Clear Refund Policy

In writing in our contract

✅ Educational Content

Like this guide - we teach, not just sell

✅ Honest Timelines

60-90 days (not fake "30-day express")

✅ No Investment Required

Standard residency - only $5k deposit (refundable)

✅ No Hidden Fees

Total cost stated upfront, guaranteed

✅ Responsive

24-48hr response time to all inquiries

Why We Wrote This Guide

See /about for our full story.

Frequently Asked Questions

1. What's the most common Paraguay residency scam?

The Incomplete Residency Card scam. Providers quote low price ($800-1,500), give you the residency card (carnet) but deliberately omit the Cédula (ID card). Without Cédula, residency is mostly useless. They then demand $2,000+ more or disappear. Always verify BOTH carnet AND cédula are included.

2. What's a fair price for Paraguay residency?

$1,800-$3,500 total for single person including government fees, translations, and service fee. Under $1,000 is suspiciously low. Over $5,000 is overpriced unless includes extras. Always get itemized quote showing breakdown of government fees vs service fees.

3. Should I pay 100% upfront?

NO. Never. Legitimate providers accept milestone payments (25% deposit, 50% mid-process, 25% completion). 100% upfront is red flag. If they insist on it, walk away. High risk of Phantom Agent scam.

4. Is investment required for Paraguay residency?

NO. Standard residency requires ZERO investment. Only requirement is $5,000 bank deposit (refundable after residency). Anyone claiming you must invest $50k-$100k is lying. This is the Fake Investment Scheme scam. Residency and investment are separate decisions.

5. Can residency really be done in 30 days?

NO. There is no official "express processing." Normal timeline is 60-90 days. Anyone promising 30 days is lying or will charge extra for fake "express service." Migraciones processes applications in order received. Be wary of unrealistic timelines.

6. What questions should I ask before hiring?

Ask all 15 questions from our verification checklist: itemized pricing, refund policy, lawyer's name, client references, payment milestones, what's included vs excluded, timeline, office address, experience level. If they can't answer clearly, don't hire them.

Get Paraguay Residency the RIGHT Way

No scams. No hidden fees. Just transparent, professional residency service.

Start Application Ask Questions First

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Residency FAQ

Common questions answered

Sources & Research

Last updated: January 2026. Scam tactics evolve. Always verify current market rates and provider legitimacy.