Tax residency
When Paraguay taxes you
A visa lets you stay. It does not decide who taxes you. In Paraguay that turns on a day count of about 120 days and the ties you keep, and it is the line that quietly reshapes what you take home.
When you become tax resident
Deemed tax resident after more than 120 days in a year; territorial tax base PwC: resident if more than 120 days in a year. Paraguay is territorial, so only Paraguayan-source income is taxed and foreign-source income is generally exempt (PwC Taxes on personal income)
Territorial system: only Paraguayan-source income is taxed (personal income tax 8 to 10 percent), foreign income is exempt. The 120-day figure is a procedural residence test used by the tax authority.
How your income is taxed
Flat-style personal income tax of 8 to 10 percent on Paraguayan-source income only Personal services income taxed at 8, 9 and 10 percent bands; capital gains 8 percent. Only Paraguayan-source income is taxable
The trap below the day count
Staying under 120 days does not make you safe. A permanent home available to you, a partner or children living in Paraguay, or your centre of vital interests can create residence well below the count. And where two countries both claim you in the same year, a tax treaty tie-breaker decides, on your permanent home first, then your centre of vital interests, then where you habitually live. This is the part worth taking to a specialist.
Count your days against the threshold
The tracker counts the days you spend in each country and shows which cross their tax-residency line, Paraguay included.
Keep reading
Researched from public sources, checked Jul 2026. Not expert-reviewed, and not legal or tax advice. Rules change; the sources and dates above are how you judge whether to rely on this or take it to a professional.