Moving to Paraguay from United States
Complete guide for Americans relocating to Paraguay. 90-day visa-free entry, territorial tax benefits, and everything you need to know.
Why Americans Move to Paraguay
Getting to Paraguay from United States
Flight Routes
Direct Routes
- • Miami (MIA) → Asunción (ASU) - American Airlines, ~7 hours
Connecting Routes
- • Panama City (PTY) via COPA
- • São Paulo (GRU) via LATAM
- • Lima (LIM) via LATAM
Flight Time
7-12 hours depending on routing
Typical Cost
$400-800 one-way, $600-1,200 round-trip
Timezone for Remote Work
Excellent - nearly identical business hours with US East Coast. West Coast teams have 4-hour overlap.
Document Requirements for Americans
Background Check: FBI Identity History Summary
Agency: FBI Criminal Justice Information Services (CJIS)
Cost: $18 FBI fee + $50-100 apostille
Processing Time: 8-18 weeks (plan ahead!)
Apostille: Apostilled by US Department of State in Washington DC. Can use expediting services ($100-200 extra) to speed up.
Complete Document Checklist
Valid Passport
At least 6 months validity remaining
FBI Identity History Summary
Apostilled and translated to Spanish
Birth Certificate
Apostilled and translated to Spanish
Marriage Certificate (if applicable)
Apostilled and translated
Health Certificate
Obtained in Paraguay (~$50)
Proof of Address in Paraguay
Rental contract or letter from host
See our complete Paraguay residency guide for detailed requirements, or learn about temporary residency options. Need help? Check our immigration lawyer cost guide.
Tax Implications for Americans
Key Tax Points for Americans
- US taxes citizens on worldwide income regardless of residence
- Foreign Earned Income Exclusion (FEIE): Exclude up to $126,500 (2024) of foreign earned income
- Must pass Physical Presence Test (330 days abroad) or Bona Fide Residence Test
- Self-employment tax (15.3%) may still apply unless using foreign corporation structure
- FBAR filing required if foreign accounts exceed $10,000 total
- Form 8938 (FATCA) required for specified foreign financial assets
- Paraguay has 0% tax on foreign income - combined with FEIE, many Americans pay $0
Learn more about Paraguay's territorial tax system and use our tax savings calculator to estimate your benefits. Paraguay is one of the top territorial tax countries for expats.
Cost Savings: United States vs Paraguay
Rent Savings
70-80% cheaper than major US cities
Compared to major cities in United States
Overall Cost of Living
50-70% lower cost of living overall
Lower than United States
Specific Examples
- →Austin rent $2,500 → Asunción $600 (76% savings)
- →US health insurance $500/mo → Paraguay $100/mo (80% savings)
- →Dinner out $60 → Asunción $20 (67% savings)
- →Monthly living $5,000 → Asunción $1,500 (70% savings)
American Expat Community in Paraguay
Community Size
5,000-10,000 Americans living in Paraguay
Growing community with active Facebook groups, regular meetups in Villa Morra, US Embassy events (July 4th, Thanksgiving)
Where Americans Live
- Asunción (Villa Morra, Recoleta)
- Encarnación
- San Bernardino
Community Resources
- Facebook: "Americans in Paraguay"
- Facebook: "Expats in Paraguay"
- US Embassy Asunción events
- American Society of Asunción
Challenges for Americans
- Language barrier - Spanish essential for daily life
- Must still file US taxes annually
- Banking can be difficult - keep US accounts
- Hot summers (40°C+) take adjustment
- Less developed infrastructure than US
- Far from family (7+ hour flights)
- Limited Amazon/online shopping options
Frequently Asked Questions
Do Americans need a visa to move to Paraguay?
Americans can enter Paraguay visa-free for 90 days. To stay longer, you apply for temporary residency while in Paraguay. No visa is needed beforehand - you arrive as a tourist and begin the residency process with an immigration lawyer.
Do I still pay US taxes if I move to Paraguay?
Yes, US citizens must file taxes annually regardless of where they live. However, the Foreign Earned Income Exclusion (FEIE) allows you to exclude up to $126,500 (2024) of foreign earned income. Combined with Paraguay's 0% tax on foreign income, many Americans pay zero income tax. Self-employment tax may still apply. Consult an expat tax professional.
How long does the FBI background check take?
The FBI Identity History Summary takes 8-18 weeks to process. You must submit fingerprints (can do at local police station or use a channeler). After receiving the report, it needs to be apostilled by the US State Department (add 2-4 weeks or pay for expediting). Start this process before leaving the US.
Can I keep my US bank accounts in Paraguay?
Yes, and you should. Many Americans maintain Charles Schwab (no foreign ATM fees), Fidelity, or online banks like Wise. Use a US mailing address (family or virtual mailbox service). Paraguayan banks are difficult to open for new residents - most Americans use US accounts for the first 1-2 years.
Is the timezone good for working with US clients?
Yes, Paraguay is ideal for US remote work. It's only 1 hour ahead of Eastern Time (EST-1), meaning nearly identical business hours. West Coast teams have a 4-hour overlap. This is much better than Europe or Asia for US client work.
How many Americans live in Paraguay?
Estimates suggest 5,000-10,000 Americans live in Paraguay, concentrated in Asunción (especially Villa Morra and Recoleta), Encarnación, and San Bernardino. The community is growing rapidly due to tax benefits and cost savings. Active Facebook groups and regular meetups make it easy to connect.
What is the biggest challenge for Americans in Paraguay?
The biggest challenge is the language barrier. While you can survive in expat areas with English, daily life, bureaucracy, and making local friends requires Spanish. Most Americans recommend taking intensive Spanish classes in the first 3-6 months. The second challenge is the hot summers (38-42°C).
Can Americans buy property in Paraguay?
Yes, Americans can buy property in Paraguay with the same rights as locals. No restrictions on foreign ownership. Property is affordable: $80,000-150,000 buys a nice apartment in Villa Morra. Many Americans rent for 6-12 months first to find the right neighborhood.
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Moving from Other Countries
Essential Paraguay Guides
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