Paraguay has recently reshaped its residency landscape with Resolution D.N.M. N° 407, introducing stricter requirements for converting temporary residency into permanent status. While obtaining temporary residency remains simple, the transition to permanence now demands clear proof of real economic activity. This shift significantly impacts applicants—especially those seeking residency without active involvement in the country.

Resolution 407: A Turning Point

On May 28, 2026, Paraguay’s Dirección Nacional de Migraciones (DNM) issued Resolution 407 to unify and clarify the rules for proving economic solvency. Previously, requirements were scattered across multiple regulations, creating inconsistency. The new resolution consolidates these into a single framework, ensuring uniform application under national migration law and MERCOSUR agreements.

Temporary vs Permanent Residency

The resolution does not affect temporary residency, which remains easy to obtain. However, at the permanent residency stage, applicants must now provide solid, verifiable proof of income or resources tied to their declared activity. This marks a shift from what was once a largely automatic conversion process.

New Requirements for Conversion

To qualify for permanent residency, applicants must demonstrate:

· Real, ongoing economic activity

· Documented and verifiable income

· Consistency with the activity declared during the temporary stage

· No absence from Paraguay for more than one consecutive year

Authorities now actively verify whether the applicant’s declared economic life genuinely exists.

Accepted Categories of Economic Activity

Applicants can prove solvency through 12 categories, including:

· Professionals and technicians

· Employees and independent workers

· Remote workers and digital nomads

· Real estate owners

· Business shareholders

· Farmers and ranchers

· Pensioners and dependents

Most categories require proof such as:

· Social security registration (IPS)

· Registered labor contracts

· VAT returns and tax compliance certificates

Stricter Rules for Professionals

A major change affects professionals:
Holding a degree is no longer sufficient. Applicants must now prove that their qualifications are actively generating income. This reinforces the shift from passive eligibility to active economic participation.

The Decline of Passive Routes

For applicants who do not plan to live or work in Paraguay, options are now limited:

· Real estate ownership may require proof of income generation

· Company shares must show actual activity

· Pensioner status is valid only if receiving a real pension

This creates a gap for working-age individuals seeking residency without active involvement.

The Investor Pass Alternative

The Investor Pass (Resolution 0283/2026) offers a separate, more flexible pathway. It allows direct access to permanent residency without going through the temporary stage.

Investment options include:

· Real estate: $200,000

· Financial instruments: $200,000 (held for 2 years)

· Business investment: $70,000 + 5 jobs

· Tourism projects: $150,000

For non-residents, the first two options are the most practical, requiring no active business operations.

Advantages of the Investor Pass

· Direct path to permanent residency

· No need to prove ongoing economic activity

· Minimal physical presence (visit once every 3 years)

· Simpler compliance compared to traditional routes

This makes it especially attractive for those seeking a “Plan B” residency rather than relocation.

A Strategic Shift in Policy

Experts view this change not as restriction, but repositioning. Paraguay is moving toward attracting a different profile of applicants—those who either:

· Actively contribute economically, or

· Invest significant capital

The country is aligning itself with global trends in investment migration.

Summary

Paraguay’s Resolution 407 marks a clear shift in residency policy. While temporary residency remains accessible, permanent residency now requires real economic substance, not just status or time. Passive applicants face fewer options under traditional routes, but the Investor Pass provides a straightforward alternative. Overall, Paraguay is entering a more structured and mature phase, balancing accessibility with economic contribution.