Quick Answer
If you earn income outside Paraguay, your Paraguay tax rate is legally 0%. Paraguay uses a territorial tax system—foreign-sourced income is not taxed. Unlike Panama's Friendly Nations Visa, Paraguay residency requires no company formation. To maintain residency, you must visit the country at least once every 3 years. Paraguay offers the fastest path to citizenship in South America (3 years vs 5-7 years elsewhere).
Updated January 2026 | Source: Dirección General de Migraciones, SET (Tax Authority)
Perfect for Remote Workers
Why Digital Nomads Choose Paraguay
Tax Benefits
- • 0% tax on foreign income
- • No worldwide taxation
- • No complex reporting
- • Legitimate tax residency
Lifestyle Benefits
- • No minimum stay required
- • Visit once every 3 years
- • Low cost of living
- • Growing expat community
The "Flag Theory" Advantage
Paraguay residency is a popular "flag" in the flag theory approach to international planning. It provides a legitimate second residency, potential tax benefits, and a backup plan—without requiring you to actually relocate.
Important Note
Timezone: UTC-4
Paraguay is on Atlantic Standard Time. Same as Eastern US during daylight saving. Perfect overlap with US East Coast clients (9am Asunción = 9am NYC in summer). Europe: 5-6 hours behind Western Europe.
Internet & Connectivity
Paraguay doesn't have 5G yet, but 4G LTE is solid in urban areas. Here's how the providers compare:
| Provider | Best For | Speed | Coverage |
|---|---|---|---|
| Tigo | Best overall, largest network | 18-20 Mbps | Urban + rural |
| Claro | Best upload speeds | 18-19 Mbps | Urban + semi-rural |
| Personal | Best fiber in cities | 50-100 Mbps fiber | Urban only |
| Starlink | Rural/remote areas | 50-200 Mbps | Anywhere |
Typical Costs
- • Basic DSL: ~$20/month
- • Fiber (50-100 Mbps): $40-60/month
- • Mobile data (unlimited): $15-30/month
- • Starlink: ~$120/month + equipment
Coworking Spaces in Asunción
Regus (Multiple Locations)
International chain with professional setup. Locations at Av. Brasilia 1994, Edificio Citicenter.
- • Hot desk: $189/month or $6/day
- • Private office: from $169/month
- • Day office: $89/day
Budget Options
- Loffice: ~$67/month, Gonzalo Bulnes 830
- Consorcio Works: ~$9/day, Washington 795
- Bauwork: Meeting room $10/hr, President Juan Manuel Frutos 2925
Digital Nomad Favorites
- Horizontal Coworking: Las Mercedes neighborhood, terraces, chill vibe
- HIVE/Shift: Financial district, modern, good for networking
Banking for Remote Workers
Cédula Required
Best for Digital Nomads: Ueno Bank
Digital-first bank with English support. Easy signup with just cédula and phone number. Good for receiving international transfers.
Other Recommended Banks
- Banco Familiar: Known for smoother process with foreigners
- Itaú: Largest bank, good for larger transactions
- Banco Nacional de Fomento: Government bank, offers USD + EUR accounts
Receiving International Payments
- ✓ SWIFT transfers work at all major banks
- ✓ Wise (TransferWise) works for receiving
- ⚠ PayPal limited (receiving restricted)
- ✓ Cryptocurrency: unregulated but functional
Best Neighborhoods for Digital Nomads
Villa Morra
Upscale area with Shopping del Sol, restaurants, cafes. Safest neighborhood. Higher rent but worth it for first-timers.
Carmelitas
Trendy area with nightlife, cafes, younger crowd. Good balance of cost and convenience. Walking distance to everything.
Las Mercedes
Residential and quiet. Good internet infrastructure. Lower rent than Villa Morra. Great for focused work.
Manorá
Near Carmelitas with mix of residential and commercial. Good cafes for working. Mid-range pricing.
FAQ
Do I need to live in Paraguay as a digital nomad?
No. Paraguay has no minimum stay requirement. You just need to visit once every 3 years to maintain your residency status. Many digital nomads never actually live there full-time.
Will my remote work income be taxed?
No. Paraguay uses a territorial tax system. Income from foreign clients or employers is completely tax-free, regardless of where you do the work.
Can I open a bank account?
Yes. With your Cédula, you can open local bank accounts. Our Standard and Premium packages include a banking introduction.
Is the internet good enough for remote work?
Asunción has reliable fiber internet (50-300 Mbps). Coworking spaces are available throughout the city with excellent connectivity.
What is internet speed like in Asunción?
Mobile 4G averages 18-20 Mbps. Fiber internet (Personal provider) offers 50-100 Mbps in urban areas for $40-60/month. Starlink is available for rural areas. No 5G yet, but 4G LTE is reliable in the city.
Are there coworking spaces in Paraguay?
Yes. Asunción has several options: Regus (international chain, $6/day or $189/month), Loffice ($67/month), Consorcio Works ($9/day), and boutique spaces like Horizontal and HIVE. Most are in Villa Morra, Carmelitas, or the financial district.
Can I receive international payments easily?
Yes, but it requires a local bank account (which requires your cédula). SWIFT transfers work at all major banks. Wise works for receiving. PayPal has restrictions. Many digital nomads use Ueno Bank for its English support and easy international transfers.
Is cryptocurrency accepted in Paraguay?
Cryptocurrency is unregulated in Paraguay—not illegal, not officially recognized. There are no major local exchanges, but peer-to-peer trading works. Some businesses accept crypto informally. For tax purposes, crypto gains from foreign exchanges are not taxed under the territorial system.