This post covers two routes - the SUACE company route and the Investor Pass - where specific investment thresholds have not been independently verified from primary government sources. Every unverified claim is clearly labelled. The territorial tax system and SUACE portal existence are confirmed. Before acting on any investment threshold in this post, consult a qualified Paraguay immigration lawyer in Asuncion.
Territorial tax system: foreign income not taxed - confirmed by SET (set.gov.py)
SUACE portal: live at formalizacion.suace.gov.py - confirmed by MIC
Standard residency structure: 2 years temporary + 3 years permanent - confirmed
Paraguay passport: ~145 countries visa-free including EU Schengen - confirmed
What awaits practitioner verification
USD 70,000 SUACE capital threshold - practitioner consensus, not confirmed from MIC decree
Nominal vs deposited capital distinction - critical, unverified
USD 150,000-200,000 Investor Pass thresholds - not confirmed from Migraciones
Investor Pass as a distinct named program - not found in official documentation
Paraguay has attracted significant attention from African digital nomads, remote workers and investors. The territorial tax system is real. The SUACE company formation system is real. The fast-track residency routes are widely discussed. Here is what is confirmed from primary sources - and what is not.
What is confirmed: the territorial tax system
Paraguay taxes only income sourced within Paraguay. This is confirmed by the Subsecretaria de Estado de Tributacion (SET) at https://www.set.gov.py/.
Personal income tax (IRP): 10% flat rate on Paraguay-sourced income above the threshold. Foreign-sourced income: 0%.
Corporate tax (IRACIS): 10% on Paraguay-sourced profits.
VAT: 10% standard rate.
What this means for remote workers: If you are tax resident in Paraguay and your income comes entirely from foreign clients, you pay 0% Paraguayan income tax on that income. You pay 10% only on any income sourced within Paraguay.
Confidence: HIGH - confirmed from SET primary source.
What is confirmed: the SUACE system
SUACE (Sistema Unificado de Apertura y Cierre de Empresas) is Paraguay's fast-track company registration system. The portal at http://formalizacion.suace.gov.py/formalizacion_suace/ is live and operated by the Ministry of Industry and Commerce (MIC).
What SUACE does: Allows company formation (Sociedad Anonima or SRL) in 24-72 hours through an online portal.
What a SUACE company requires:
- Registered address in Paraguay
- At least one local legal representative (representante legal)
- Annual tax filings with SET
Confidence: HIGH - SUACE portal confirmed live, operated by MIC.
What is confirmed: the standard residency route
Paraguay's standard residency structure is confirmed by multiple sources:
- Apply for Temporary Residency (Residencia Temporaria) at the Direccion General de Migraciones
- Hold temporary residency for 2 years
- Apply to upgrade to Permanent Residency (Residencia Permanente)
- After 3 years of permanent residency, eligible for citizenship
Total timeline to citizenship: Approximately 5 years.
Confidence: HIGH - structure confirmed from multiple practitioner sources and consistent with Paraguayan immigration law.
The SUACE fast-track route - awaiting verification
The following describes the SUACE fast-track route as widely reported by Paraguay immigration practitioners. The specific USD 70,000 capital threshold and the nominal vs deposited capital distinction have NOT been independently verified from the MIC or the Direccion General de Migraciones. Do not act on these figures without confirming them with a qualified Paraguay immigration lawyer.
What practitioners report: Registering a SUACE company with a declared nominal capital above a threshold qualifies the foreign investor for direct permanent residency - bypassing the 2-year temporary stage.
Widely cited threshold: USD 70,000 nominal capital declared in the company's articles of incorporation.
The critical distinction practitioners cite: This is reported as nominal capital - the stated capital of the business - not a bank deposit. It does not need to be deposited in a Paraguayan bank account upfront. However, this distinction is the most important claim to verify - if wrong, it materially changes the accessibility of this route.
Total timeline to citizenship if confirmed: Approximately 3 years (direct permanent residency + 3-year clock).
To verify: Contact the MIC at https://www.mic.gov.py/ or engage a Paraguay immigration lawyer to confirm the current decree or resolution establishing this threshold.
The Investor Pass route - awaiting verification
The Investor Pass as a distinct named program has not been found in official Paraguayan government documentation. The thresholds below are consistent across multiple practitioner sources but have not been confirmed from the Direccion General de Migraciones. Treat these as indicative only.
What practitioners report: A direct investment into Paraguayan assets qualifies for direct permanent residency.
Widely cited thresholds:
- Real estate or tourism investment: USD 150,000
- Securities (Bolsa de Valores de Asuncion): USD 200,000
To verify: Contact the Direccion General de Migraciones at https://www.migraciones.gov.py/ or engage a Paraguay immigration lawyer.
Paraguay passport - confirmed
The Paraguayan passport provides visa-free or visa-on-arrival access to approximately 145 countries including the EU Schengen area, UK and most of Latin America.
Confidence: HIGH - passport strength confirmed from Henley Passport Index and official sources.
Cost of living - confirmed
Asuncion is one of the cheapest capital cities in South America. Indicative costs:
- Accommodation (1-bedroom apartment): USD 300-600/month
- Food: USD 200-400/month
- Transport: USD 50-100/month
- Total comfortable lifestyle: USD 600-1,200/month
Confidence: HIGH - cost of living data from multiple independent sources.
What to do before acting
1. Engage a qualified Paraguay immigration lawyer in Asuncion (consultation: USD 100-300)
2. Ask them to confirm the current SUACE capital threshold from the MIC decree
3. Ask them to confirm whether the capital must be deposited or can be nominal
4. Ask them to confirm whether the Investor Pass exists as a distinct program
5. Ask them to confirm the current Migraciones requirements for each route
The standard residency route (2 years temporary + 3 years permanent) is confirmed and does not require practitioner verification before proceeding.
Evidence note
The territorial tax system is confirmed from SET at https://www.set.gov.py/. The SUACE system is confirmed from MIC at https://www.mic.gov.py/. The standard residency structure is confirmed from multiple sources. Investment thresholds for the SUACE fast-track and Investor Pass routes are practitioner consensus only and have not been independently verified from primary government sources. This post will be updated when primary-source verification is obtained.