First 6 Months in Paraguay
A month-by-month roadmap from pre-departure preparation through full settlement. Residency filing, cédula, banking, tax registration, healthcare, business setup, and everything in between.
Your 6-Month Timeline
TL;DR — Key Milestones
Pre-Departure: Strategic Preparation
The success of your move is determined months before arrival. The DGM now strictly enforces document validity windows — coordinate carefully.
Essential Document Package
Long-form original, apostilled in country of issuance
National level (FBI for US, ACRO for UK), apostilled. Must be dated within 3 months of DGM filing — get this LAST
Marriage or divorce certificates, apostilled
For Independent Means Visa: verifiable records of $1,300+/month passive income (pension, dividends, rental income)
6+ months validity beyond intended stay
Critical Timing Rule
The DGM enforces a 3-month validity window for criminal background checks from the date of issuance. This must be the last document you collect before travel. Getting it too early means redoing the entire process.
US Citizens: 2026 Financial Positioning
- 1% Remittance Tax (new 2026): Applies to physical cash transfers and money orders. Bank-to-bank wires and digital platforms (Wise, Mercury) are exempt.
- FEIE Planning: The 2026 exclusion is $132,900. Start tracking days in-country immediately to qualify via the 330-day physical presence test.
- FBAR Reminder: If combined foreign account balances exceed $10,000 at any point during the year, you must file FinCEN Form 114.
The Administrative Sprint
Upon arrival at Silvio Pettirossi International Airport, the immediate priority is filing residency paperwork. Most expatriates enter a 2-year Residencia Temporal phase under Migration Law N° 6984/22.
DGM Submission Process
| Milestone | Authority / Location | Why It Matters |
|---|---|---|
| Entry Stamp Verification | Airport Immigration | Proof of legal entry for the DGM file |
| Interpol Clearance | Interpol Asunción | Confirms no active international warrants |
| Police Informática | National Police Dept. | Local background check to supplement foreign records |
| Residency Filing | DGM (Eligio Ayala) | Official submission for the 2-year temporary permit |
| Cédula Application | Identificaciones | Initial biometric registration for your ID card |
"Precarious Residence" Status
Upon filing, you receive "Precarious Residence" — a legal status allowing you to remain in Paraguay while your temporary permit is processed (typically 30-90 days). This is not a tourist visa — it's your first official residency document.
Housing & Daily Infrastructure
Neighborhood selection is the single most influential factor in your daily quality of life — affecting internet reliability, grocery access, safety, and social opportunities.
Villa Morra
Commercial and social heart of Asunción. Most coworking spaces, premium gyms, and international dining. Ideal for nomads needing high connectivity and social proximity.
Recoleta / San Blas
Tree-lined streets with a "neighborhood" atmosphere. Favored by European expats. Proximity to Shopping Mariscal and the AgroShopping weekly market.
Las Lomas / Carmelitas
High-net-worth enclave with luxury high-rises. Near the "new center" around Aviadores del Chaco. Gated communities ideal for families.
Daily Logistics Setup
Grocery & Pharmacy
- Casa Rica: Premier gourmet supermarket (German-influenced), imported goods, excellent bakery
- Fortis: Wholesale hub (think Costco), bulk buying
- Areté / Real: Standard groceries with online ordering and delivery
- Punto Farma / Farmacenter: 24/7 pharmacies, ubiquitous across the city
Internet & Connectivity
- Fiber (FTTH): Standard in central Asunción, 100-300 Mbps at $15-25/month
- Starlink: Available for $50-60/month, up to 400 Mbps, great as backup
- Carriers: Tigo (widest coverage), Personal, or Claro
- 5G: Expanding in Asunción, coverage growing throughout 2026
The Cédula Milestone & Banking
Month 3 is the transition from "visitor" to "resident." The DGM typically approves temporary residency by now, unlocking the cédula — your golden ticket to the Paraguayan economy.
What the Cédula Unlocks
Opening a Bank Account
Requirements
- Newly issued cédula
- Proof of address (utility bill or rental contract)
- Bank reference letter from home country
- Proof of income or RUC registration
Banks: Sudameris, Banco Atlas, Itaú — all offer accounts in PYG and USD.
RUC Tax Registration
Register at the SET office immediately after receiving your cédula. The RUC is required for anyone planning to work locally, open a business, or apply for a Tax Residency Certificate.
| Personal Income (IRP) | 10% on Paraguay-sourced income |
| VAT (IVA) | 10% on goods and services |
| Foreign Income | 0% (territorial system) |
| Corporate (IRE) | 10% for local business entities |
Mobility & Healthcare
By Month 4, you're fully functional in the local system. Focus shifts to mobility and optimizing your healthcare coverage.
Paraguayan Driver's License
Residents are legally required to obtain a local license. Process through OPACI and your local municipality (Asunción, Luque, or Lambaré).
Requirements:
- Cédula
- Blood type certificate from local lab
- Basic vision and hearing test
Many municipalities now issue same-day.
Vehicle Options
Paraguay imposes high import duties — a standard sedan averages $24,000. Many expats skip car ownership entirely.
Alternatives:
- Bolt/Uber: Exceptionally affordable, widespread in Asunción
- MUV: Local ride-sharing app
- Used cars: Better value, but check title carefully
Healthcare: The Pre-Paga System
Paraguay's private healthcare runs on a membership-based "pre-paga" system. Expats are strongly advised to secure a private plan for access to modern hospitals.
| Plan Tier | Monthly Cost | Coverage |
|---|---|---|
| Basic | $40-$70 | Consultations, basic labs, emergency care |
| Standard | $80-$120 | Full hospitalization, surgeries, maternity |
| Premium | $150+ | International coverage, executive health suites |
Top hospitals: Sanatorio Migone, La Costa, Baptist Hospital. Specialist consultations outside a plan: $50-$75 — remarkably affordable vs. Western standards.
Business Setup & Social Integration
For entrepreneurs, Month 5 is when you finalize your business structure. For everyone, it's the peak of the culture-shock "negotiation stage" — proactive social integration is the remedy.
The EAS Business Structure
The Empresa por Acciones Simplificadas (EAS) is the 2026 gold standard for expat businesses. Key features:
- 100% digital incorporation
- No minimum capital requirement
- 100% foreign ownership allowed
- 10% corporate tax (IRE) on local income
Note: A local resident (someone with a cédula) must serve as legal representative. Most law firms offer "nominee director" services while you await your own residency approval.
Navigating Culture Shock
Month 5 often coincides with a dip — the initial excitement of $2 steaks and $15 internet fades, replaced by frustration with bureaucratic pace and Latin American time flexibility.
The Remedy: Social Integration
- InterNations Asunción: Professional networking events
- Paraguay Digital Nomads: Weekly meetups via Meetup.com
- Expats in Paraguay (Facebook): 12,000+ members
- Thursday Night Nomad Social: Rotating Villa Morra bars
Shipping, Compliance & Steady State
The final month of your initial half-year. Finalize logistics, establish tax residency, and transition to maintenance mode.
International Shipping
Wait until permanent housing is secured before shipping large items. Paraguayan customs is complex — always use an established courier.
Air Freight (Recommended for Electronics)
- Saspy, SendIt, Globalbox: Miami/Madrid locker service
- Cost: $21.50-$23.00/kg, customs-cleared by courier
- Best for: laptops, phones, online purchases
Maritime Freight (Furniture/Bulk)
- Takes 60-90 days
- Requires dedicated customs broker
- Plan well ahead and get multiple quotes
Tax Residency Certificate
For those from high-tax European jurisdictions, the Tax Residency Certificate is the final step in establishing your new fiscal domicile.
Requirements:
- Active RUC registration
- Proof of physical presence (183+ days)
- Local economic activity on record
Applied for through the SET. Provides legal evidence to home-country tax authorities of your change in fiscal domicile.
US Citizens: 6-Month Compliance Check
- Track days in-country for FEIE qualification (need 330 days in a 12-month period)
- Prepare FBAR filing if combined foreign account balances exceeded $10,000 at any point
- FATCA reporting via Form 8938 if accounts exceed $200,000 (single) at year-end
- Continue using bank wires/Wise for transfers to avoid the 1% remittance tax on cash
6-Month Cost Summary
| Category | Single Nomad | Family of Four | Premium |
|---|---|---|---|
| Rent (Modern Apartment) | $350-$550/mo | $900-$1,400/mo | $2,000-$3,500/mo |
| Utilities | $40-$65/mo | $120-$180/mo | $250-$400/mo |
| Internet (Fiber) | $15-$25/mo | $30-$50/mo | $60-$100/mo |
| Groceries | $250-$350/mo | $700-$1,000/mo | $1,200+/mo |
| Health Insurance | $40-$80/mo | $160-$350/mo | $500-$800/mo |
| Transport | $120-$200/mo | $350-$500/mo | $600-$1,000/mo |
| Dining & Social | $200-$400/mo | $500-$900/mo | $1,500+/mo |
| Monthly Total | $1,015-$1,670 | $2,760-$4,380 | $6,110+ |
One-time costs: Residency fees and legal counsel ($2,000-$3,500), document apostille and translations ($500-$1,000), security deposit on rental ($350-$1,400). These are separate from ongoing monthly expenses.
After 6 Months: The Path to Permanence
Transition is nearly automatic if you haven't been absent for 12+ consecutive months
3 years of permanent residency. Requires basic Spanish proficiency and proof of integration
Paraguayan passport strength with dual citizenship allowed
Frequently Asked Questions
How long does the full Paraguay residency process take?+
The standard temporary residency (Residencia Temporal) takes 30-90 days for DGM approval after filing. You receive "Precarious Residence" status immediately upon filing, allowing you to stay legally. The temporary permit is valid for 2 years, after which you can transition to permanent residency. Total timeline from arrival to permanent residency: approximately 2 years.
What documents do I need before flying to Paraguay?+
Essential documents (all apostilled): birth certificate (long-form original), criminal background check from national authority (FBI for US, ACRO for UK), marriage/divorce certificates if applicable, and proof of income ($1,300+/month for Independent Means Visa). Critical: the criminal background check must be dated within 3 months of your DGM filing, so get it last.
When can I open a bank account in Paraguay?+
You need your cédula (Paraguayan national ID) to open a full bank account, which typically arrives in Month 3. Banks like Sudameris, Banco Atlas, and Itaú offer accounts in both Guaraníes and US Dollars. Until then, use digital wallets like Tigo Money (works with just a passport) and international services like Wise for transfers.
What is the cédula and why is it so important?+
The cédula de identidad is Paraguay's national ID card. It's the "golden ticket" to the Paraguayan economy — required for opening bank accounts, signing long-term rental contracts, registering a vehicle, getting a phone plan, and registering for the RUC (tax ID). You apply for it after your temporary residency is approved, typically in Month 3.
How much does it cost to settle in Paraguay for the first 6 months?+
Budget approximately $8,000-$15,000 for your first 6 months including: residency fees and legal counsel ($2,000-$3,500), rent and deposit ($2,100-$3,300 for 6 months), health insurance ($240-$480), living expenses ($6,000-$10,000), and miscellaneous admin costs ($500-$1,000). A single digital nomad can live comfortably on $1,015-$1,670/month ongoing.
Do I need a lawyer for Paraguay residency?+
While it's technically possible to navigate the DGM process independently, most professional expatriates use legal counsel ($1,500-$2,500). A lawyer ensures documents are correctly translated by licensed Paraguayan translators, files the "Precarious Residence" immediately, and navigates the multiple government offices (DGM, Interpol, Police Informática, Identificaciones) efficiently.
What is the RUC and when should I register?+
The Registro Único de Contribuyentes (RUC) is Paraguay's tax identification number, issued by the SET (tax authority). You need it to work locally, open a business (EAS), invoice clients, or apply for a Tax Residency Certificate. Register immediately after receiving your cédula (typically Month 3-4). Processing takes about 2 business days.
Can I get a Paraguayan driver's license?+
Yes. After receiving your cédula (Month 3+), you can get a Paraguayan license through OPACI and your local municipality. Requirements: cédula, blood type certificate from a local lab, and basic vision/hearing test. Many municipalities now issue the license same-day. Until then, drive on your home license plus an International Driving Permit (IDP).
What are the best neighborhoods for expats in Asunción?+
Villa Morra is the commercial and social heart — best for digital nomads with coworking spaces, cafés, and fast internet. Recoleta/San Blas offers a quieter, tree-lined residential feel favored by European expats. Las Lomas/Carmelitas is the high-net-worth enclave with luxury high-rises. Rent ranges from $350-$550/month (single) to $900-$1,400 (family) depending on area.
How do I ship personal belongings to Paraguay?+
Wait until Month 5-6 when you have permanent housing. Air freight consolidators (Saspy, SendIt, Globalbox) provide a Miami/Madrid locker — items are flown to Asunción and customs-cleared for $21.50-$23/kg. For furniture and bulk items, maritime freight takes 60-90 days and requires a customs broker. Paraguayan customs is complex, so always use an established courier service.
What about US tax obligations while living in Paraguay?+
US citizens must still file taxes globally. Key considerations: the FEIE excludes up to $132,900 of foreign earnings (2026), FBAR filing required if foreign accounts exceed $10,000 at any point, and the new 2026 1% remittance tax applies to physical cash transfers (bank wires and digital transfers are exempt). Use bank-to-bank wire transfers or Wise to avoid the remittance tax.
How do I get a Tax Residency Certificate in Paraguay?+
Apply after Month 6 through the SET (tax authority). Requirements: active RUC registration, proof of physical presence (183+ days recommended), and local economic activity. The certificate proves your fiscal domicile to home-country tax authorities. Essential for Europeans leaving high-tax jurisdictions, as it provides legal evidence of your tax residency change.
Related Guides
Disclaimer: This guide is for informational purposes only and does not constitute legal, tax, or immigration advice. Timelines, costs, and requirements may change. Always consult with qualified Paraguayan legal counsel and licensed tax professionals for your specific situation. Information is current as of February 2026.