Paraguay Expat Glossary

An international certification under the Hague Convention that authenticates public documents (birth certificates, criminal records, marriage certificates) for use in foreign countries. Paraguay requires all key documents to be apostilled in the country of issuance before residency filing. Non-Hague countries require consular legalization instead.

Traditional South American barbecue and a cornerstone of Paraguayan social culture. Typically features beef ribs, chorizo, and morcilla (blood sausage) grilled over wood or charcoal. Asados are communal events — accepting an invitation is one of the best ways to integrate with locals.

The most popular ride-hailing app in Paraguay (more widely used than Uber in Asunción). Rides within the city typically cost $2-$5. Airport to city center is approximately $14. Accepts cash and card payment.

Paraguay's national biometric identity card. The "golden ticket" to the Paraguayan economy — required for opening bank accounts, signing long-term rental contracts, registering vehicles, getting phone plans, and applying for the RUC (tax ID). Foreign residents receive a cédula after their temporary residency is approved by the DGM, typically 2-3 months after filing.

Traditional Paraguayan cheese bread made from mandioca (cassava) starch, eggs, and cheese. Sold by street vendors and bakeries everywhere, especially in the morning. A staple snack and cultural icon — trying chipa is an essential first-week experience.

Public bus/minibus in Paraguay. Fares are approximately $0.48 per ride, paid via the Jaha card (rechargeable transit card). Routes cover most of Asunción but can be slow and crowded. Most expats prefer Bolt/Uber for convenience.

Paraguay's immigration authority, headquartered on Eligio Ayala street in Asunción. Responsible for processing all residency applications (temporary and permanent), issuing residency permits, and managing migration records. The DGM is your first government stop after arriving in Paraguay.

Paraguay's simplified stock company structure — the 2026 gold standard for expat businesses. Features: 100% digital incorporation, no minimum capital requirement, 100% foreign ownership allowed, 10% corporate tax (IRE) on local income. Requires a local resident (cédula holder) as legal representative.

A Paraguayan notary office (escribanía) and the notary professional (escribano). Unlike a US/UK notary who merely witnesses signatures, a Paraguayan escribano is a licensed legal professional who drafts legal documents, verifies their legality, and provides official certification. Required for property transactions, business formation, vehicle transfers, and powers of attorney.

US federal law requiring American citizens to report foreign financial accounts and assets to the IRS. Applies to accounts exceeding $200,000 (single) or $400,000 (married) at year-end. Filed via Form 8938 with your annual tax return. Separate from FBAR reporting.

US Treasury filing requirement for any American citizen with combined foreign financial account balances exceeding $10,000 at any point during the calendar year. Filed electronically through the BSA E-Filing System. Deadline: April 15 (auto-extended to October 15). Penalties for non-filing can reach $10,000+ per violation.

US tax provision allowing qualifying Americans living abroad to exclude up to $132,900 (2026) of foreign earned income from US federal income tax. Requires meeting either the 330-day physical presence test or the bona fide residence test. Does not apply to passive income (dividends, capital gains, rental income).

Paraguay's official currency, denoted as PYG or ₲. One of the most stable currencies in South America — over 80 years without hyperinflation or confiscation. Exchange rate approximately 7,300 PYG = 1 USD (2026). ATMs dispense both PYG and USD. Wise and local exchange houses offer better rates than banks.

One of Paraguay's two official languages alongside Spanish. Paraguay is unique in South America as most of the population speaks an indigenous language. Many Paraguayans speak Jopará — a mix of Spanish and Guaraní — in daily conversation. Basic Guaraní is helpful for cultural integration and required for citizenship.

Paraguay's national identification department, responsible for issuing the cédula de identidad (national ID card). Located at Campos Cervera 6162 in Asunción. You visit Identificaciones after your temporary residency is approved by the DGM to complete biometric registration and receive your cédula.

A verification step in the Paraguay residency process confirming the applicant has no active international warrants. Conducted at the Interpol office in Asunción. Required as part of the DGM filing and typically completed in the same week as other Month 1 administrative tasks.

Paraguay's corporate income tax, set at 10% on locally-sourced business income. One of the lowest corporate tax rates in the Americas. Applies to businesses registered in Paraguay (including EAS structures). Foreign-sourced corporate income is 0% under the territorial tax system.

Paraguay's personal income tax on locally-sourced income. Rates: 8% on income up to ~$50,000/year, 10% above that threshold. Only applies to income generated within Paraguay — foreign-sourced income (remote work for foreign clients) is 0% under the territorial tax system.

Paraguay's value-added tax (VAT). Standard rate: 10% on most goods and services. Reduced rate: 5% on essential items (basic food, pharmaceuticals, public transportation). Included in displayed prices. Businesses with a RUC can reclaim IVA on business expenses.

The informal blend of Spanish and Guaraní spoken by most Paraguayans in everyday conversation. Understanding Jopará helps with cultural integration — you'll hear Guaraní words mixed into Spanish sentences, especially in markets, taxis, and social settings outside of formal business contexts.

Paraguay's 2019 tax modernization law that formally established the territorial tax system. Under this law, only income generated within Paraguay is subject to local taxation — foreign-sourced income is taxed at 0%. This is the legal foundation for Paraguay's appeal to digital nomads and remote entrepreneurs.

Paraguay's 2022 migration law that restructured the residency pathway. Establishes the current framework: 2-year temporary residency (Residencia Temporal), followed by permanent residency, and citizenship eligibility after 5 total years. Modernized the DGM process and document requirements.

Cassava root — the staple food of Paraguay. Served boiled as a side dish with nearly every meal (replacing bread or potatoes). Also the base ingredient for chipa (cheese bread) and many traditional recipes. Inexpensive and available at every market and restaurant.

South American trade bloc comprising Argentina, Brazil, Paraguay, and Uruguay (with associate members). MERCOSUR citizens benefit from simplified residency pathways in Paraguay — reduced documentation, faster processing, and lower costs compared to non-MERCOSUR nationals.

Paraguay's inter-municipal organization that oversees driver's license issuance (among other functions). To get a Paraguayan driver's license, you apply through OPACI and your local municipality (Asunción, Luque, Lambaré). Requires cédula, blood type certificate, and basic vision/hearing test.

The national police department's digital records division in Asunción. Part of the residency application process — provides a local criminal background check to complement your foreign criminal record. Visited during Month 1 of the settlement process, typically on the same day as Interpol clearance.

A temporary legal status granted immediately upon filing your residency application at the DGM. Allows you to remain in Paraguay legally while your temporary residency permit is processed (30-90 days). Despite the concerning name, this is a normal and official part of the immigration process.

Paraguay's private healthcare membership system. A monthly subscription providing access to private hospitals and clinics. Plans range from $40/month (basic: consultations and emergency) to $150+/month (premium: international coverage). Separate from the public IPS system and strongly recommended for expats.

Paraguay's permanent residency status, available after completing 2 years of temporary residency (or immediately via the SUACE investor program). Transition is nearly automatic if you haven't been absent for 12+ consecutive months. Permanent residents can work, own businesses, and access all services without restrictions.

A 2-year renewable residency permit — the standard entry pathway for most foreign nationals under Migration Law N° 6984/22. Filed at the DGM in Asunción within the first month of arrival. Grants full legal residency, the right to a cédula, and access to the Paraguayan banking system.

Paraguay's tax identification number, issued by the SET (tax authority). Required for anyone working locally, operating a business, invoicing clients, or applying for a Tax Residency Certificate. Register immediately after receiving your cédula. Processing takes approximately 2 business days.

Paraguay's tax authority — equivalent to the IRS (US) or HMRC (UK). Responsible for tax registration (RUC), collection, and issuing Tax Residency Certificates. Located in Asunción. Where you go to register for the RUC after receiving your cédula.

Paraguay's instant interbank payment system, allowing free 24/7 transfers between bank accounts. Available in most banking apps. The Paraguayan equivalent of Zelle (US) or Faster Payments (UK). Makes local payments fast and free once you have a bank account.

Paraguay's one-stop business registration system, also used as shorthand for the SUACE investor visa program. The investor pathway allows foreigners to obtain permanent residency through a business investment of approximately $70,000. Faster than the standard 2-year temporary residency route — grants permanent residency directly.

An official document from the SET proving your fiscal domicile is in Paraguay. Essential for Europeans leaving high-tax jurisdictions — provides legal evidence to home-country tax authorities of your change in tax residency. Requirements: active RUC, proof of 183+ days physical presence, and local economic activity.

Paraguay's national drink — cold herbal tea made from yerba mate steeped in ice water, often mixed with medicinal herbs (yuyos). Shared communally from a single cup (guampa) using a metal straw (bombilla). Tereré is a social ritual — being offered tereré by Paraguayans is a sign of friendship and acceptance.

A tax framework where only income generated within the country's borders is subject to local taxation. Paraguay's system (Law 6380/2019) means foreign-sourced income — remote work for overseas clients, foreign investments, overseas rental income — is taxed at 0%. This is Paraguay's primary draw for digital nomads and international entrepreneurs.

Paraguay's most widely used digital wallet, operated by mobile carrier Tigo. Accepts bill payments, transfers, and QR code payments at thousands of merchants. Can be registered with just a passport (no cédula needed initially) — making it the go-to payment solution for new arrivals before they receive their cédula.