What changed in 2026 (the short version)
Until October 2022, Paraguay was the star destination for fast residency: you could get permanent residency almost immediately, with a simple bank deposit of roughly USD 4,500 to 5,000 at the Banco Nacional de Fomento. Migration Law 6984/22 abolished that deposit in October 2022 and imposed the 2-year temporary stage. Then, in 2026, two further tightenings reshuffled the deck.
First tightening, on January 1, 2026: the 365-day rule. To grant permanent residency, the authorities now verify that you have not spent more than 365 consecutive days outside Paraguay since obtaining your temporary residency. If you exceed that threshold, no permanent residency: you get a 2-year extension of temporary residency instead. A new document, the movimiento migratorio, lists all your entries and exits so it can be checked. More on this below.
Second tightening, the most recent and the most underestimated, on May 28, 2026: Resolution DNM 407. It changes the very nature of the permanent residency file. From now on, economic solvency can no longer be presumed, it must be proven. This is the point that suddenly eliminates a trick everyone was using.
Resolution 407: the end of the "zero-activity RUC"
For years, a hack circulated in expat groups: open a RUC (the Paraguayan taxpayer number) and file zero returns, just to tick the "declared activity" box without any real substance. Resolution 407 closes that door for permanent residency.
Two principles now frame your file:
- Real, verifiable income. You must demonstrate, with supporting documents, lawful, sufficient and verifiable means of living: real income or genuinely available resources, valid and up to date.
- Consistency. The documents must match the profession or activity you declared during your temporary residency. You cannot claim one thing and then prove another. Foreign documents must be legalized or apostilled, and translated into Spanish.
A RUC opened without activity, a diploma on its own, a company on paper or an asset with no income are no longer enough by themselves. The resolution requires you to show movement: real economic activity. For a freelancer, that means VAT (IVA) filings for the last 3 months or income tax (IRP) filings for the year, with the constancia de cumplimiento tributario, all showing genuine activity.
The resolution sets out twelve categories (freelancers, digital nomads, professionals, employees, company shareholders, property owners, retirees, etc.), each with its own supporting documents. The complete breakdown is in our free intro call. But the message is the same everywhere: prove real activity, consistent with what you declared.
Why we were ready: the LLC + declared RUC combo
Here's the important point, and this is where our approach makes all the difference. We have nothing to catch up on. Since we started supporting Paraguay residencies, from mid-2024, we do not sell the zero-activity RUC. On the contrary: we systematically pair the residency with a US LLC that constitutes real economic activity, and with a properly declared Paraguayan RUC.
The logic is simple. The US LLC gives you a credible operating structure: USD invoicing, traceable income, access to international banking and Stripe. That real income, declared cleanly on the Paraguayan side, produces exactly the kind of file Resolution 407 now demands: movement, supporting documents, consistency between the declared profession and the economic reality.
While many were selling a shortcut that died on May 28, 2026, our clients already have a compliant setup: an LLC that is running, a RUC that is filing, documented income. The tightening of the law does not weaken them, it works in their favor. This is precisely the kind of file Migraciones wants to see.
This is also what separates a real strategy from a simple "cedula sale": we don't get you a fragile status that collapses at the first reform, we build a file that holds because it rests on real activity.
Residency + LLC + declared RUC, coordinated
We point you toward residency (via our partner in Asunción), and we set up your US LLC and banking so that your solvency file is real and solid, not an empty RUC. A single English-speaking point of contact for the whole ecosystem.
The standard route, step by step
This is the path the vast majority of people take. It happens in two stages: first temporary residency, then conversion to permanent.
Temporary residency (2 years)
You obtain the Carnet de Radicación Temporaria, valid for 2 years. The date on this card is the reference point for everything that follows.
Keep a presence tie
During these 2 years, you must never spend more than 365 consecutive days outside Paraguay (see below), and you build your declared activity.
Conversion (month 21 to 24)
The application to switch to permanent is filed within a precise window: between the 21st and 24th month. Too early or too late, and the application can be rejected.
Permanent cedula
Once permanent residency is approved, you obtain the cedula (the Paraguayan ID card) in its permanent version.
The 365-day rule
This is the technical trap you absolutely must understand. Between the issue date of your temporary card and the filing of the conversion, you must never spend more than 365 consecutive days outside Paraguay.
A simple return to the country resets the counter. The decisive factor is the date of your last exit from the territory, not the date of the permit. If you exceed 365 days, you don't get permanent residency: the authorities grant you a 2-year extension of temporary residency, and you go around again. A document, the movimiento migratorio, now lists all your entries and exits.
The investor route: permanent residency directly
If you don't want to go through the 2 years of temporary residency, there is one other door: investing. In 2026, it is the only way to obtain permanent residency directly.
- USD 70,000 for a productive project.
- USD 150,000 for a tourism project.
- USD 200,000 for real estate or financial instruments.
On April 17, 2026, Paraguay also launched an "Investor Pass" that leads directly to permanent residency without going through the temporary stage, with a rare flexibility advantage: you only need to enter the territory once every 3 years to keep the status. It is the most flexible option for anyone with the capital to lock up.
Pitfall #1: permanent residency ≠ tax residency
This is the most costly mistake, and it applies to Paraguay as to every territorial-tax country. Obtaining the permanent cedula is an immigration status. Becoming a Paraguayan tax resident is a separate status that requires real presence and a genuine center of interests on the ground.
Taking Paraguayan residency without actually settling there does not make you a Paraguayan tax resident, and above all it does not automatically end your tax residency in your home country. France (or your country) can keep treating you as a resident as long as you haven't effectively moved your life. The cedula is a condition, not an end in itself.
Done right, the transfer of tax residency is entirely manageable, but it is planned upfront. This is exactly the kind of topic where the immigration dimension (residency) and the wealth dimension (tax, succession) must be thought through together. For the advanced wealth side, we rely on our associated firm Patrimoine International.
The winning combo: Paraguay + US LLC
Beyond the solvency file, the two regimes fit together fiscally. A US LLC owned by a non-resident pays no US federal tax on its non-US-source income (no ETBUS). And Paraguay, being territorial, in principle does not tax foreign-source income.
| Item | Zero-activity RUC | Paraguay + declared LLC |
|---|---|---|
| Solvency file (Resolution 407) | ✗ Refused | ✓ Real activity proven |
| Traceable income / USD invoicing | No | Yes (via LLC) |
| US federal tax (foreign income) | · | 0% (no ETBUS) |
| Resilience to reforms | Fragile | Robust |
It's the same territorial principle as the Panama combo, with Paraguay's historic DNA: purely territorial, a light entry cost, and our long-standing partner in Asunción.
Who Paraguay makes sense for, and who it doesn't
✅ A good fit if
- You're a freelancer / online entrepreneur with real activity you can document
- You want territorial residency at a moderate entry cost
- You accept spending time on the ground (at minimum, respecting the 365-day rule)
- You want a solid file, not a fragile status that collapses at the next reform
❌ Less suitable if
- You were looking for near-instant permanent residency without real activity: that is no longer possible
- You're counting on a zero-activity RUC: Resolution 407 refuses it
- You never want to set foot there: the 365-day rule forbids it on the standard route
FAQ: Permanent Residency in Paraguay 2026
What changed on January 1, 2026?
The authorities apply the 365-day rule: to convert your temporary residency to permanent, you must not have spent more than 365 consecutive days outside Paraguay since obtaining your temporary residency. If you exceed it, permanent residency is refused and replaced by a 2-year extension of temporary residency, checked via the movimiento migratorio.
What is Resolution DNM 407?
The resolution of May 28, 2026 that requires proving real economic solvency for permanent residency. Solvency is no longer presumed: it must be documented and consistent with the profession declared during temporary residency.
Is a RUC with zero filings still enough?
No. You must show movement: VAT (IVA) filings for the last 3 months or income tax (IRP) filings for the year with a tax-compliance certificate, or another proof of real income depending on your category.
How does a US LLC help?
It provides real, documentable economic activity (USD invoicing, traceable income). Paired with a declared RUC, it builds exactly the solvency file Resolution 407 asks for. It has been our approach since mid-2024.
Does the permanent cedula make me a tax resident?
No. Permanent residency and tax residency are two separate statuses. Tax residency depends on your real presence and your center of interests, and the cedula alone does not end your tax residency in your home country.
How long does it take in total?
It depends on your route. The standard route goes through 2 years of temporary residency before conversion to permanent; the investor route grants permanent residency directly. We pin down the precise timeline for your file together on a call.
Go further
- All our residency guides by country
- US LLC from Paraguay: the operational layer of the combo
- Open a Wyoming LLC as a non-resident: how we set up the structure
- Panama residency: the other major territorial combo
- Patrimoine International: for the advanced wealth and tax dimension (associated firm)