Paraguay temporary residence - 0% tax income from abroad or not?

[JustAnotherNomad]

You're the one who tried to derail this thread by bringing up tax residency.
PY residency (not tax residency) is used successfully by many digital nomads who don't need tax‌ residency because they move around so frequently that no other country has a tax claim‍ against them anyway.
Some countries require a tax residency certificate from a new country for⁠ them to "let you go", but that's far from a general rule. Maybe that's your⁤ misconception here, difficult to tell.

 

[Mssquirrel]

You can receive international transfers in PY,︁ you can easy open an USD account but they will ask for proof of funds︂ to know is legal money, you can sort it out. You can't use Revolut or︃ N26 as a PY resident you have keep an EU address till they may or︄ may not close your account. You can use Wise, Xapo bank, Payoneer, Advcash with Paraguay︅ address.
The local︊ ID takes less than that it took me 6 weeks no 6 months. You can︋ get a tax ID a after you get your ID. That's not a tax certificate︌ tho. I think a lot on this plan might work or not depending on your︍ citizenship and your plans.

 

[meze99]

You can't bring your foreign income to Paraguay, if you do it will be taxed.‌
Did you get your Temporary Residence in 6 weeks through a lawyer? On your own‍ it can be up to 6 months.
Advcash is useless in Paraguay. Xapo may accept⁠ you, but they can't receive USD wire transfers anymore, so also pretty useless for a⁤ US LLC. Payoneer may work, do they issue debit cards to PY residents?

 

[JustAnotherNomad]

I'm not a PY resident, but I know it's a popular option with digital nomads.‌ You just get the residency and don't spend much time there, just travel like before.‍ You only use the residency for KYC forms etc., since you can't use an AirBnB⁠ address for that.

 

[Mssquirrel]

If you bring it as dividends you don't. If you do it⁢ as a freelancer/remote worker you get taxed 10% only, an accountant told me that as︀ a remote worker you get taxed the months you are here, if you work from︁ here 4 months a year and travel the other months you are not taxed because︂ is territorial. I didn't bring any income into the country but even if you get︃ taxed it will not be too much and you can write off pretty much anything.︄
Xapo send you a Mastercard is useful if you have crypto or receive money from︅ UK. I think Payoneer send cards I personally didn't try but I chat with people︆ that got it.

 

[Sols]

No posts deleted yet, but just a reminder that this thread is about Paraguay temporary‌ residence. Discussions about tax residence elsewhere should be held in another thread.

 

[Mssquirrel]

I did it with a gestoria yes,I paid a few extra hundreds⁢ to get the cedula faster tho if not it would have take me maybe a︀ month more Some gestorias are slower and some are even faster but you definitely will︁ get the cedula in less than 6 months.

 

[KJK]

To be honest, he isn't selling⁣ or claiming to provide tax residency. Noone can truly "sell" tax residency anywhere in the⁢ world - with the exception being maybe a bribed government worker who issues you a︀ tax residency certificate.

He is selling a service - consult with you and help you︁ to get residency in Paraguay (seems like before it was permanent, now it is first︂ temporary and after a year or so permanent).

What you do with your new shiny︃ residency is up to you. If you need tax advice, ask a tax advisor, not︄ a Youtube guy selling some consulting service and helping you with residency paperwork.

I'm pretty︅ sure the tax residency can be achieved even without spending 120 days there. I doubt︆ it is fully legal and according to the law but it is possible. You just︇ need to know the right people.

It is the same story with UAE, Thailand and︈ other countries like that - you can get a residency permit easily but to be︉ a tax resident you should meet certain criteria (spend days there, have documents such as︊ long-term rent etc) to be issued a confirmation or a certificate that you are a︋ tax resident there. Yet mysteriously, people exist, who have this certificate and spend only 2︌ days per year there. I'll let you guess how they achieve it.

Later, when you︍ have this residency in a country that doesn't tax any income or taxes only locally︎ sourced income, you should check what your situation in your home country is.

Do the️ countries have a treaty for avoidance of double taxation? If yes, make sure you meet the criteria to be the resident of the new country. If not, make sure you‌ do NOT meet the criteria to be the resident of the old country.

There is‍ a lot of misleading info and nonsense in this topic, some text in posts from⁠ JustAnotherNomad etc... but I don't have the energy to go into detail.
@backpacker don't get⁤ so angry 😀😎 evidently many people are going this route.

To answer OPs question "what problems can come up later if this setup is legal right now?": there is⁣ nothing illegal about this setup. If you truly don't live in your old country, you⁢ can become a resident of Paraguay. If you want to keep living in your old︀ EU country and fake it, then a lot of problems can come up later. If︁ you are an US citizen or US person, then none of this applies and you︂ cannot use it.

 

[backpacker]

Oh, really ... ns2 . Great to know that‍ such a nice guy is out there stupi#21
... Which,⁤ if true, should not be the basis of any discussion at all.
... Which doesn't make it right.⁣ ban-:;

 

[Cloudbanck]

An aside here about home country. In most legal systems︆ there is no such thing as "home country", there is just country of: citizenship, residence,︇ tax residence or sometimes domicile.
If you are born with multiple citizenships and have grown︈ up in multiple countries, the concept of home country becomes fuzzy - and there are︉ more and more people like this.

Legally some high tax countries handle this by saying,︊ if you have been a resident for 10 years in our country regardless of citizenship,︋ you have the same hurdles to get out of our tax net as someone who︌ was born in the high tax country, is a citizen of it, and have never︍ been a resident anywhere else.

So more than home country, the question is if you︎ are trying to get out of a high tax country's tax net - then a️ residency in Paraguay may or may not be helpful - depends on circumstances.

If you‌ are already out of all high tax countries tax nets, then a Paraguay residency could‍ be useful as a place to actually reside - to keep staying out of tax⁠ nets - and/or to have a fixed address to use for bank/broker accounts and stuff.⁤ If you travel around and don't stay long anywhere, it is really useful to have⁣ a fixed address somewhere in a country that will not tax you (or tax you⁢ minimally), and Paraguay is a good choice for this.

 

[jafo]

There! I fixed it for you!

PS. Nobody in government gives a rat's *ss about some homeless or another poor person who⁣ is a net negative on the state's coffers moving to UAE, Panama, Paraguay, or any⁢ fiscal paradise and be a net negative there. They couldn't care less if that person︀ disappeared "yesterday".

No different than a wife who is wealthy and a husband who is︁ broke. If the husband wants a divorce, the wife will NOT bring up the issue︂ of splitting the marital assets!
Confirmed #FACTS! ca#"!

 

[BarleyMalt]

I'd recommend reading the other threads about PY. Maintaining residency seems a bit more complex‌ than it seems, as, if I remember well, you need to have neighbors testify for‍ you that you're living there and not a nuisance on society. Of course, it's nothing⁠ a local fixer can arrange, but it means that the setup isn't so stable.