Paraguay FAQ 📖

The full playbook: setup, tax, documents, banking and audit defence.

1. Big Picture

2. Paraguay Tax Basics

3. Tax Protection (Covered vs Not)

4. Residency vs Tax Residency (TRC, RUC, Cedula)

5. Timeline + What You Receive

6. Documents (Apostilles + Timing)

7. Banking + US LLC

8. Home Country Ties + Audit Defence

9. Spain-Specific Risks 🇪🇸

10. Government Clawback Arguments (and How to Defend) 🛡️

11. Audit Context (Good to Know) 📊

12. Money Transfers and Dividend Process 💸

Package reference updated 3 Nov 2026. Other answers last reviewed 17 Jul 2026.

1. Big Picture

What is the Paraguay setup, in one line?

Is Paraguay legit and OECD-compatible?

What's the single biggest mistake people make?

2. Paraguay Tax Basics

Does Paraguay tax worldwide income?

Personal income tax rate for foreign-source income?

Capital gains tax (including crypto)?

What counts as Paraguay-source income?

Do I need a Paraguayan company?

3. Tax Protection (Covered vs Not)

When am I actually protected?

When am I NOT fully protected?

How many days in home country is too much?

Will Paraguay protect me if I don't deregister properly?

4. Residency vs Tax Residency (TRC, RUC, Cedula)

Difference between legal residency and tax residency?

Do I get a TRC? How often?

How strong is the TRC in practice?

5. Timeline + What You Receive

Process and timeline?

What do I get?

Why do I collect my RUC in person?

Physical presence requirements?

Is the 12-month clock counted from my visit or from the date on my card?

When exactly should I book Visit 2?

What is the schedule for the appointment day? How long does it take?

What happens if I'm absent from Paraguay for more than 12 consecutive months during temporary residency?

Ongoing/recurring costs after setup?

What does converting from temporary to permanent residency cost?

How long does it take to arrange the lease?

Can I get the lease before I have my cedula?

Will the utility bills be in my name?

Can I get a Paraguayan driving licence?

6. Documents (Apostilles + Timing)

What documents do I need?

What does apostille mean?

Does criminal record need to be recent?

Can I collect documents remotely?

Digital apostilles?

Multiple passports/residencies - will it be stricter?

My document shows a national ID (DNI) different from my passport. Does it matter?

I live in a different country from my nationality. Which country's police record do I need?

The 3-month rule applies to issue date, not apostille date?

I'm a UK national. What's the fastest way to get my documents apostilled?

Why is the cedula taking longer than expected?

Why does my friend's cedula come faster than mine?

Do I get my original documents back after the process?

7. Banking + US LLC

Do I need a Paraguayan bank account?

Recommended spending flow?

What business account should the LLC use?

What personal account should I use for spending?

Can you help open a bank account?

If I do want a Paraguayan account, how does it work and how long does it take?

Why get a US LLC?

Before or after Paraguay?

Requirements to open (via NTH partner)?

US LLC tax filing requirements?

What if the LLC has more than one owner?

We're a group of partners. Can one of us hold the LLC and split the money through a side agreement?

Filing cost?

What is ECI?

How many days a year can I spend in the US?

Can I hire people in the US?

What happens if I marry a US citizen?

Can US LLC invoice US clients?

30% withholding?

Hard rules to keep LLC clean (corporate veil)?

8. Home Country Ties + Audit Defence

Can I keep property in home country?

What proof to defend in an audit?

9. Spain-Specific Risks 🇪🇸

I'm currently tax resident in Spain. What are the specific risks?

10. Government Clawback Arguments (and How to Defend) 🛡️

"You obtained Paraguay residency but spent 4-5 months in your home country. You didn't effectively change your habitual abode."

"You continued to run a company or receive income controlled from your home country, so your main economic interests remained here."

"You kept an apartment or family there. Your centre of vital interests remained here."

11. Audit Context (Good to Know) 📊

How automated are tax audits?