While once considered one of the cheapest options in the world to obtain almost instantaneous permanent residency, Paraguay has very recently made changes to their immigration laws that have now effectively killed off their once popular permanent residency in Paraguay program – which only required a bank deposit of around $5000 USD to obtain the permit.
Yes, you heard that right – as of October 2022, what was once one of the cheapest permanent residency options on the planet is officially no more, and although there are still ways to obtain Paraguayan residency, the new options available to expats looking to base themselves in this landlocked Latin American nation definitely have risen the price tag quite a bit.
So is obtaining Paraguayan permanent residency still a good idea moving into 2023 and beyond? Or should you turn your attentions to other neighboring nations in the region? Here is the truth about what you need to know if you plan on getting permanent residency in Paraguay now, and into the foreseeable future.
A Good Deal, Once Upon A Time
Before October 2022, getting permanent residency in Paraguay used to be one of the easiest and most accessible ways to gain long-term living status on planet Earth – and was for many expats from all over Latin America, let alone the world, a great option to gain access to not only a Paraguayan lifestyle, but also grant the new residency holders much appreciated ease of travel and financial opportunities, due to the nation being one of the four Mercosur group countries (including Brazil, Argentina, and Uruguay).
For the measly price of only $5000 USD (plus lawyer fees, and other expenses, which made the true estimated total price of the program around double that), you could have deposited that money into a bank account in your own name, and obtained immediate permanent residency in Paraguay. No needing to wait for a number of years of temporary residency renewals – you would get the permanent, long-term option, right off the bat.
This made Paraguay, once viewed as a rather unheralded afterthought on the South American continent, a suddenly very intriguing option for the right kind of expat, willing to go beyond the beaten path, and try to explore the options of living and exploring one of the lesser known nations in Latin America.
New Laws, New Changes
However, as the old adage goes, nothing last forever, and unfortunately neither did this once very affordable program. Due to changes in Paraguay’s immigration law, which by the time of writing this article, has only just been enacted by the country’s leader since 2019, President Mario Abdo Benitez, obtaining permanent residency in Paraguay by a simply bank transfer has now been replaced – by a much more stringent program.
The changes were enacted supposedly due to worries that the old Law Number 978 on Migration discriminated against various individuals trying to gain permanent residency in Paraguay, due to slights of various natures, such as being disabled, or being cited for ‘public indecency’. As such, it has been out with the old, in with the new – but despite the attempted ‘modernization’ of the immigration law, it has now made obtaining permanent residency in Paraguay a much harder ask then it previously used to be.
According to the new Law of Migration, it is still possible to gain residency by proving economic solvency – but the caveat is that it will not be permanent, but rather a temporary permit given out, which will be renewable every two years. Additionally, for those desperate to obtain permanent residency in Paraguay right from the get-go, there is still the option of investing at least $70,000 USD into a business in the country – which would grant immediate permanent residency in Paraguay, just as the former deposit of $5000 USD into a local bank account used to give.
Should You Consider Moving to Paraguay Now?
Unfortunately, even at the former price point of $5000 USD, obtaining permanent residency in Paraguay wasn’t always the most clear cut option for many expats, especially those working as digital nomads, due to the nation’s often poor internet connections, as well as its relative geographical isolation, and poor flight connections to anywhere outside the Latin American region, from its capital city of Asuncion.
Now, with the country effectively rising the price for permanent residency in Paraguay by 14 times what it used to be, let alone not letting you simply place the money into a bank account in escrow, but rather needing you to now actively invest in a business in a nation not known for its generous tax laws (like Panama for example), it really behooves me to see who exactly this program is now really for.
For the right kind of investor or expat, who really wants to experience Guarani culture up-close and personal for a significant amount of time, and is willing to move a significant amount of capital to make that happen, the perhaps obtaining permanent residency in Paraguay is still a good option. However, considering that many other nations in the Latin American region do not require such massive investments into potentially risky business ventures to obtain long-term residency (see my article on Paraguay’s close neighbor of Argentina right here, to learn more), I cannot recommend moving to, or investing in Paraguay at this time.
Destination: Paraguay, A Unique Nation, Deep in South America’s Heartland
Despite Paraguay being an interesting, beautiful country, with some very beautiful, intriguing neighbors, and set in one of the prime destinations for future growth and economic prosperity in the 21st century in Latin America, the reality is that the best thing going for this small landlocked country was the ease, convenience, and overall cheapness of its permanent residency program.
However, until the nation’s law makers perhaps realize that their new laws have all but crippled the vast majority of potential expats and economic opportunities that could have come their way, by now pricing out the market with these massive hikes on the cost of admission, then it remains to be seen if obtaining permanent residency in Paraguay will ever really be worth the cost and effort of moving long-term to a nation still light-years behind its neighbors in urban and economic development.
That much said, if you are still interested in finding a great residency program, either long or short term, within the Latin American region, then why not take a look at some of the nation’s I’ve written about in great detail here, where I detail my best recommendations for expats looking for a home in Western Hemisphere? I’m sure you’ll find more of the clarity you’re seeking!