Official Documentation

Paraguay Tax Residency Certificate

The official proof that Paraguay is your tax home. Here's exactly when you need it, what it costs, and how to get it—step by step.

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Quick Answer

The Tax Residency Certificate (Certificado de Residencia Fiscal) is an official document from SET proving your fiscal domicile in Paraguay. It takes 7-10 business days to process and is valid for 1 year. You need it to break tax ties with your home country, claim treaty benefits, or prove your tax status internationally.

See Full Process

7-10

Business Days

Low

Government Fees

1 Year

Validity

RG 65/2020

Legal Basis

When Do You Actually Need This Certificate?

Not everyone needs a Tax Residency Certificate immediately. Understanding when you need it—and when you don't—can save you time and effort.

✓ You NEED This Certificate When:

  • Breaking tax ties with your home country
    Proving to HMRC, IRS, ATO, etc. that you have a new tax home
  • Claiming DTA treaty benefits
    Using Double Taxation Agreements with Spain, Chile, Uruguay, etc.
  • Opening certain international accounts
    Some banks require tax residency proof for compliance
  • Defending your tax position
    If your home country's tax authority questions your residency

✗ You DON'T Need It Yet When:

  • You just arrived
    Focus on residency and RUC first—certificate comes later
  • Your home country hasn't asked
    No need to volunteer it until required
  • You're only opening local accounts
    Paraguayan banks don't require this certificate
  • You haven't established substance yet
    Build your presence first to strengthen your application

Don't Rush It

Most digital nomads don't need this certificate immediately. First, complete your residency, get your RUC, file at least one annual tax return, and establish real presence. Then apply for the certificate when you actually need it—like when breaking ties with your home country.

Two Certificates, Two Purposes

People often confuse these two documents. They serve different purposes and have different requirements.

Tax Compliance Certificate

Certificado de Cumplimiento Tributario

  • Cost: Free
  • Where: Marangatú (online)
  • Purpose: Domestic use—contracts, bidding, proof you're current on filings
  • Shows: You're up-to-date with SET
  • Valid for: Varies by use case

Tax Residency Certificate

Certificado de Residencia Fiscal

  • Cost: Minimal government fees
  • Where: SET office (in person)
  • Purpose: International use—proving tax residency abroad
  • Shows: Paraguay is your tax home
  • Valid for: 1 year

You'll Need the Compliance Certificate First

The Tax Compliance Certificate is a prerequisite for the Tax Residency Certificate. You'll download it from Marangatú (free) and include it in your residency certificate application.

Requirements to Apply

Before applying for your Tax Residency Certificate, ensure you meet these requirements:

  • 1

    Active RUC Status

    Your RUC must be active and not suspended. Check your status in Marangatú.

  • 2

    Up-to-Date Tax Declarations

    All annual returns must be filed—even if reporting zero Paraguayan income.

  • 3

    Evidence of Fiscal Activity

    Active participation in Paraguay's tax system. Filing returns satisfies this—you don't need local income.

  • 4

    No Extended Absence Violations

    Must not have violated the 12-month (temporary) or 36-month (permanent) absence rules.

What About 'Local Income'?

Some sources claim you need Paraguayan income. This is misleading.

The actual requirement is "evidence of fiscal activity"—being an active participant in the tax system. Filing annual declarations (even with zero local income) counts. Maintaining an active RUC with regular filings counts. You don't need substantial Paraguayan income.

Step-by-Step

Application Process

Follow these steps to obtain your Tax Residency Certificate. Total time: approximately 2-3 weeks.

1

Verify Your RUC Status

Day 1

Ensure your RUC is active and not suspended. Log into Marangatú to check your status and verify all obligations are current.

2

File Any Pending Declarations

Day 1

Submit any outstanding tax returns through Marangatú. You must be fully compliant before applying.

3

Obtain Tax Compliance Certificate

Same Day

Download your free Certificado de Cumplimiento Tributario from Marangatú portal. This proves you're up-to-date on filings.

4

Request Migration Movement Record

1-3 Days

Obtain your Constancia de Movimiento Migratorio from Migraciones. Shows your entry/exit history.

5

Complete DNIT Application Form

Same Day

Download and complete the Nota de Solicitud from the DNIT website. Include the country requesting the certificate.

6

Submit Application at SET/DNIT

Day 5-7

Submit all documents in person at SET offices in Asunción, or authorize a representative via power of attorney.

7

Wait for Processing

7-10 Days

SET reviews your application and verifies your fiscal activity. Processing typically takes 7-10 business days.

8

Collect Your Certificate

Final

Pick up your Certificado de Residencia Fiscal in person or through your authorized representative.

See Document Checklist →

Required Documents Checklist

  • □
    Cédula de Identidad

    Valid Paraguayan ID card (original + copy)

  • □
    Certificado de Cumplimiento Tributario

    Download free from Marangatú portal

  • □
    Constancia de Movimiento Migratorio

    From Migraciones

  • □
    DNIT Application Form (Nota de Solicitud)

    Download from dnit.gov.py - specify requesting country

  • □
    Passport

    For identity verification (original + copy)

Power of Attorney Option

If you can't be in Paraguay when the certificate is ready, you can authorize a representative to collect it through a notarized poder especial (power of attorney). If the power of attorney is granted abroad, it must be apostilled. Many lawyers and gestores offer this service.

Government Requirements

  • • Tax Compliance Certificate - Free from Marangatú portal
  • • Migration Movement Record - From Migraciones
  • • SET Processing Fee - Minimal government fee

Government fees are paid in Guaraníes. Contact us for current fee information.

Common Mistakes to Avoid

❌ Applying without active RUC

Your application will be rejected if your RUC is suspended or inactive. Always check your status first in Marangatú.

❌ Not filing annual declarations

Even if you owe nothing, you must file. Unfiled returns = non-compliance = certificate denied.

❌ Confusing the two certificates

The free compliance certificate from Marangatú is NOT the same as the formal residency certificate from SET.

❌ Extended absences without return visits

If you've been absent longer than the allowed period (12 months for temp, 36 for permanent), your status may be at risk.

Renewal Process

Your Tax Residency Certificate is valid for 1 year. To maintain continuous certification:

  • ✓ Reapply using the same process before your current certificate expires
  • ✓ Keep your RUC active throughout the year
  • ✓ Continue filing annual tax declarations
  • ✓ Maintain your migration records (entry/exit stamps)
  • ✓ Keep proof of your center of vital interests in Paraguay

Plan Ahead for Renewal

Start the renewal process 2-3 weeks before your certificate expires to ensure continuity. If you need the certificate for ongoing purposes (like proving tax residency to your home country), a gap in coverage could complicate matters.
Common Questions

Frequently Asked Questions

Tax Compliance Certificate (Certificado de Cumplimiento Tributario): A free document from Marangatú that shows you're current on tax filings. Used for domestic purposes like contracts and bidding.

Tax Residency Certificate (Certificado de Residencia Fiscal): An official document from SET proving you are a tax resident of Paraguay for international purposes—like breaking ties with your home country or claiming treaty benefits.
You need this certificate when: (1) breaking tax ties with your home country and need proof of new tax home, (2) claiming benefits under a Double Taxation Agreement, (3) opening international bank accounts that require tax residency proof, or (4) defending your tax position in an audit. Most digital nomads don't need it immediately—focus on establishing residency and RUC first.
The certificate is valid for 1 year from the date of issue. After expiration, you must reapply following the same process. Ensure you maintain active RUC status and continue filing tax declarations throughout the year.
Not exactly. The requirement is "evidence of fiscal activity," not necessarily income. This can be satisfied by: filing annual tax returns (even with zero Paraguayan income), maintaining an active RUC with regular declarations, or having any local invoicing activity. The key is being an active participant in Paraguay's tax system.
Yes. You can authorize a representative through a notarized power of attorney (poder especial). This must be properly legalized or apostilled if granted abroad. This is useful if you're not physically in Paraguay when the certificate is ready.
Required documents include: (1) Cédula de Identidad (valid), (2) Certificado de Cumplimiento Tributario (free, from Marangatú), (3) Constancia de Movimiento Migratorio (from Migraciones), (4) Completed DNIT application form (Nota de Solicitud), and (5) Passport for verification.
RG 65/2020 is the legal regulation from SET/DNIT that establishes the requirements and procedure for issuing Tax Residency Certificates in Paraguay. It was created to standardize the process for residents of treaty countries seeking to apply international conventions to avoid double taxation.
Once you submit all documents to SET, processing takes 7-10 business days. However, gathering the prerequisite documents (migration certificate, ensuring RUC compliance) can add a few days. Total time from start to certificate is typically 2-3 weeks.
See All Tax Questions →

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How to Become Tax Resident

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RUC Registration Guide

Step-by-step guide to registering with SET

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Common Tax Mistakes

Avoid these errors when managing your tax status

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