LegalUpdated 2025-01
Can I work remotely in Paraguay legally?
Yes, remote work for foreign companies is legal and tax-free in Paraguay. No special work permit needed for foreign employment.
Key Takeaways
- Remote work for foreign companies is fully legal
- No work permit needed for foreign employment
- Foreign income is 100% tax-free
- Residency recommended for long-term stays
- Time zone aligns well with US East Coast
Yes, you can absolutely work remotely in Paraguay while earning from foreign companies. This is completely legal and comes with significant tax advantages.
The Legal Framework
Paraguay has no restrictions on:
- Working remotely for foreign employers
- Freelancing for foreign clients
- Running online businesses serving foreign markets
You do NOT need:
- Work permit (for foreign employment)
- Business visa
- Special digital nomad visa
- Local company registration (for foreign income)
Tax Treatment
Foreign-source income is tax-free due to territorial taxation:
- Salary from US company = 0% tax
- Freelance income from foreign clients = 0% tax
- Online business revenue from abroad = 0% tax
What You DO Need
- **Legal Residence Status**: Either tourist visa (90 days) or proper residency
- **Means to Receive Money**: Bank account, Wise, PayPal, crypto
- **Equipment**: Your own laptop, phone, etc.
Tourist vs. Residency
**As Tourist**
- 90-day stays, extendable
- Remote work is fine
- Less documentation
- Not ideal long-term
**With Residency**
- Legal certainty
- Full banking access
- Path to citizenship
- Recommended for anyone staying 6+ months
Practical Setup
- Get residency (recommended)
- Open local bank account
- Set up home office or use coworking
- Get reliable internet
- Continue working as before
Income Receipt Options
- **Wise**: Best USD/Guaraní rates
- **PayPal**: Works but fees higher
- **Direct Wire**: To local bank (expensive fees)
- **Crypto**: Tax-free, good option
- **US Bank**: Keep and transfer as needed
Coworking Options
Asunción has growing coworking scene:
- Urban Station (Villa Morra)
- Espacio Qualia
- Various shared offices
Most coffee shops also have good WiFi.
Time Zone Advantage
Paraguay is:
- Same time as EST (New York)
- 1 hour ahead of Central
- 3 hours ahead of PST
Great for US clients and teams.
Insurance Considerations
- You're not covered by Paraguayan labor laws (foreign employer)
- Get your own health insurance
- Consider professional liability if needed
- Remote worker insurance options exist
What NOT to Do
- Don't work for Paraguayan companies without proper visa
- Don't try to claim "tax residency" while barely present
- Don't ignore your home country's tax obligations (US citizens file worldwide)
Sources
Have More Questions?
Explore our comprehensive guides to Paraguay
More Legal Questions
Can Americans buy property in Paraguay?
Yes, Americans can buy property in Paraguay with the same rights as locals. No restrictions on foreign ownership.
How do I get a Paraguayan driver's license?
You need residency (cedula) first. Then take a medical exam, written test, and driving test. Process takes 1-2 days and costs ~$50.
Can I bring my pet to Paraguay?
Yes, pets are allowed with proper documentation: health certificate, rabies vaccination, and import permit. Process is straightforward.
How do I ship belongings to Paraguay?
Sea freight is cheapest for large shipments ($2,000-5,000 for container). Air freight for essentials. Import duties apply unless you qualify for exemption.