Paraguay experienced a significant increase in residency applications in 2025, confirming its emergence as a preferred destination for international relocation, tax planning, and long-term residence. Official migration data shows that the surge reflects a sustained structural shift rather than a temporary spike.
1. Record Growth in Residency Applications
Residency applications in Paraguay rose by approximately 50% year-on-year in 2025, surpassing the total number of applications recorded in all of 2024 by October. Applications exceeded 38,000 by October 2025 and were estimated to have crossed 43,000 by year-end, marking the highest growth rate in recent years.
2. Rising Residency Issuances and Permit Types
Alongside increased demand, Paraguay issued 36,263 residence permits in 2025, up from 28,464 in 2024. Temporary residency remained the most common entry route, while permanent residency options also saw growth, placing 2025 as the third-highest year for issued residencies since 2019.
3. Changing Profile of Applicants
Although applicants from neighboring countries continue to dominate, Paraguay has seen a notable rise in applications from Europe and North America. Nationals from Brazil and Argentina remain the largest groups, while growing numbers from Germany, Spain, the Netherlands, and the United States highlight Paraguay’s transition into a globally attractive migration destination.
4. Key Drivers Behind Paraguay’s Appeal
Paraguay’s simple and fast immigration procedures, lack of minimum investment for temporary residency, and territorial tax system are key factors behind the surge. Foreign-source income is not taxed locally, while domestic income is taxed at a flat 10%, making the country competitive for internationally mobile individuals. Political stability and a clear path to citizenship further strengthen its appeal.
5. Residency Pathways, Tax Planning, and Citizenship
Applicants typically enter through a two-year temporary residency that can convert to permanent status, or directly through the SUACE investment route with an investment of around USD 70,000. Citizenship becomes available after three years of permanent residence, though effective tax and legal planning remains essential to fully benefit from Paraguayan residency.
Summary
The 50% surge in residency applications in 2025 signals Paraguay’s growing role in global mobility strategies. With streamlined immigration, favorable taxation, political stability, and a clear naturalization pathway, Paraguay is evolving from a regional option into a serious destination for globally mobile individuals seeking long-term residence and tax efficiency.
