Paraguayan residence w/European passport - What's next ?

[OffshoreResearch]

I'm now a Paraguayan resident after a long and hard fight against an extremely complex bureaucracy and a bit of corruption ... 🙂

Ok but this's just the first step towards my new life and full freedom.
Now I've a Paraguayan ID but I'll get a passport only after 3 years ... I need to be patient but I'm confident this will be worth my efforts.

I'm still using the European passport of my country so what's the full list of documents I should try to get from Paraguay in order to start opening bank accounts as a PY resident ?

I'm following a complex process to get a documents which will proof I'm a local tax payer (I've already got a tax ID after a second hard fight).
I'll be authorized to buy a local apartment only from April 2020 so I'll have a clear proof of address/utility bill and local bank account statement showing the address on it to avoid any possible doubt regarding this residence.

What else should I need to get ? Will EMIs consider me a Paraguayan resident with a proof of address/local tax id even if I've still an EU passport ?
Will real bank accept these papers as well ?

I guess I'll need to get anything translated in English by an authorized translator.
Paraguay isn't blacklisted in the EU so I hope I'll not get in any troubles.

I don't need to hide myself considering I've followed a lecit and transparent process to get a real residence and I'm doing my best to comply with any local requirements as well.
I'll no longer live in my previous country for more than 2/3 months per year so things should be fine here as well.

There're many didsdvantages for PY residents it seems:
1. PayPal is useless for the moment (PY citizens can't receive payments and can just pay authorized sellers through their website processing forms generated through PPal, it seems).
2. Not sure if I'll find an EMI actually accepting a PY resident but maybe I may setup an EU company and trying to get a business account where I'll just be the administrator (not sure, I'll try in April once I'll have my full set of docs)

It's important clarifying I've an online business related to the sale of 'virtual assets' and there's no tax over extra territorial income but I'll still do something locally to pay something in order to keep my position as clean as possible and to safeguard my hardly gained freedom.

There's no requirement about local presence (just 10 days of presence every 3 years are fine to maintain my residence status) so I'm planning to live travelling around the world.

Thanks in advance for your advice.

Last edited: Jan 15, 2020

 

[Tax Cow]

What else should I need to get ? Will EMIs consider me a Paraguayan resident with a proof of address/local tax id even if I've still an EU passport ?
Will real bank accept these papers as well ?

Yes, you're considered a Paraguayan resident based on the CRS rules. You might want to get a few prepaid SIM cards the next time you're in Paraguay for the country specific phone number. For 10 dollars, get 2 prepaid numbers. Put one of them in your phone, and even if you don't top it up, the phone number should stay operational for 36-48 months, depending on the provider. Once it no longer works, put in the next SIM but ask the bank to change your number via support. Alternatively, load up a few dollars a year to prolong the lifespan of your phone numbers.

You need a PY phone number for banking. Also for 2-factor authentication purpose which is increasingly mandatory.

1. PayPal is useless for the moment (PY citizens can't receive payments and can just pay authorized sellers through their website processing forms generated through PPal, it seems).
2. Not sure if I'll find an EMI actually accepting a PY resident but maybe I may setup an EU company and trying to get a business account where I'll just be the administrator (not sure, I'll try in April once I'll have my full set of docs)

a.1) Personal PayPal is largely worthless. I'm curious why you need it in 2020? It's cheaper to transact with stable coins like Tether, even going through the exchange 2x. To shop safely online, use virtual credit cards.

For your business, PayPal can still be useful as many people want to pay with this method. If your business is registered in a semi-reputable location, but for sure if you register in EU, you can get business PayPal. Your Paraguayan residency won't stop you.

a.2) Transferwise is the easiest. Your PY residency card alone will pass the KYC. Passport not required. Anyhow, I recommend TW only as a temporary solution. Getting a proper checking account in the US is the optimal route in 2020. High street banks in the EU and Switzerland are not that available due to negative interest climate, unless you apply for "premium services". Keep using TW for cheaper international payments, but not for holding funds. Obtain ESTA (simplified Visa for EU citizens), and book a flight to US. Open an account in TD, Wells Fargo, or BoA. Use their forums or help centers to ensure you have all the documents they require.

 

[OffshoreResearch]

Thanks for the good advice xzars. I'll remember to buy a couple of SIMs next time I'll be back in Paraguay and I'll keep one on a phone always active (I'll look for a good mobile provider to get sure to leave track wherever I'll be considering I'll not be in my country for most of the year).
First I'll buy my apartment in Paraguay to have a proof of addres after that I'll open an account at Transferwise and look for a good jurisdiction where setting up my company w/PayPal account.
I'll investigate a bit about US banks and possible future tax issues even if I'm not an US citizen nor resident.
I know this may appear as a solution too good to be true but I'll still make some deep research in multiple directions about this topic by hearing a couple of US tax consultants as well.
My activity is fully lecit as well as my whole situation now so I just need to understand how continuing to do things in the most clean and transparent way.

 

[suppliersten]

xzars said:
a.2) Transferwise is the easiest. Your PY residency card alone will pass the KYC. Passport not required. Anyhow, I recommend TW only as a temporary solution. Getting a proper checking account in the US is the optimal route in 2020. High street banks in the EU and Switzerland are not that available due to negative interest climate, unless you apply for "premium services". Keep using TW for cheaper international payments, but not for holding funds. Obtain ESTA (simplified Visa for EU citizens), and book a flight to US. Open an account in TD, Wells Fargo, or BoA. Use their forums or help centers to ensure you have all the documents they require.
Click to expand...

Hi xzarz , May I ask , why are you so strongly encouraging street banks in US, do you think that TW or Payoneer by that sense are going to be unstable in 2020+?

 

[Silvio]

Can you share how did you get the Paraguayan residency? Did you use any intermediary?

 

[Torie]

Yes, please share?

 

[Siggi]

There are more than enough local lawyers offering this service. There is nothing easier than getting a residency in Paraguay if you have an EU passport. I did it myself. What you need:

- 8 days in Paraguay to get everything done
- 5k deposit in a PY bank for 3-6 months
- 5k for the service

3 months later you will receive your documents via post or you pick them up in PY if you prefer.