Paraguay for Software Developers
Code from South America, pay 0% tax on your remote salary
Paraguay has emerged as an unexpected gem for software developers seeking tax optimization and a low cost of living. While it lacks the tech hub status of Austin or Lisbon, Paraguay offers something more valuable for remote developers: territorial taxation that means 0% tax on your US, EU, or international salary.
For developers earning $100K-200K remotely, Paraguay can mean $30-50K in annual tax savings compared to working from the US. Combined with living costs under $1,500/month, you can save or invest the majority of your income while enjoying a comfortable lifestyle in Asunción.
The trade-off? Paraguay isn't a tech hub. You won't find Google offices or major tech meetups. But for developers who work remotely and value financial optimization over networking scenes, Paraguay delivers exceptional value.
Tax Benefits for Software Developers
Income & Savings Potential
Why Paraguay for Software Developers?
Territorial Taxation
Only Paraguay-sourced income is taxed. Your remote salary from a US or EU company? 0% tax. This is the primary draw for most developer expats.
Low Cost of Living
A comfortable lifestyle in Asunción costs $1,200-1,800/month. Nice apartment in Villa Morra ($400-600), food, entertainment, and healthcare included.
Reliable Internet
Fiber optic (100-300 Mbps) available in expat neighborhoods like Villa Morra. Tigo, Personal, and Copaco offer reliable service. Most developers report no issues.
US Time Zone Friendly
Paraguay is UTC-4/-3, aligning well with US Eastern Time. Perfect for standups and meetings with US-based teams.
Easy Residency
No income requirements for residency. The process takes 2-3 months and costs under $2,000 with a lawyer. Permanent residency available in 3 years.
Political Stability
Unlike some neighbors, Paraguay has maintained economic stability with low inflation and a currency pegged to the USD.
Challenges & Solutions
A Day in the Life
A typical day for a remote developer in Asunción starts around 8-9 AM with coffee at home or a local café. Many developers work from their apartments in Villa Morra, which typically have fiber internet and air conditioning (essential in summer).
By 9 AM, you're online and synced with your US team for standups. The time zone alignment means normal working hours without late nights. Lunch might be at a local restaurant ($5-8 for a full meal) or delivered via PedidosYa.
Afternoons continue with focused coding time. The lack of a bustling tech scene can actually be a productivity advantage—fewer distractions, more deep work. By 5-6 PM, you're done for the day.
Evenings offer gym time ($30-50/month), dinner at restaurants in Villa Morra ($15-25), or socializing at expat meetups. The low cost of living means you can enjoy a comfortable lifestyle without the financial stress common in tech hubs.
Essential Tools & Availability
| Tool/Service | Available? | Notes |
|---|---|---|
| High-speed internet | Fiber 100-300 Mbps available in Villa Morra | |
| Reliable power | Get a UPS as backup; outages are rare in premium areas | |
| Coworking spaces | Several options in Villa Morra: Urban Cowork, Koga, etc. | |
| GitHub/GitLab | No issues accessing any dev tools | |
| AWS/GCP/Azure | Full access, latency to US-east acceptable | |
| Video conferencing | Zoom, Meet, Teams all work fine | |
| VPN services | No restrictions on VPN usage | |
| International payments | Wise, Payoneer work; local bank account helpful |
Workspace Options
- •Urban Cowork (Villa Morra) - Modern space, fast internet, $100-150/month
- •Koga Coworking (Carmelitas) - Creative vibe, community events
- •WeWork (Villa Morra) - International standard, higher price
- •Various café options for occasional work
Community (Small but growing)
The tech community in Asunción is small but welcoming. Most developer expats are remote workers rather than local startup founders. You'll find a mix of nationalities—Americans, Europeans, and Latin Americans—connected through expat groups.
Where to Connect:
- • Expats in Paraguay Facebook group
- • Digital Nomads Asunción WhatsApp groups
- • Local tech meetups (occasional)
- • Villa Morra coworking communities
- • Online: Remote work Slack communities
Monthly Budget Breakdown
| Rent (1BR Villa Morra) | $450-600 |
| Utilities & Internet | $80-120 |
| Groceries | $200-300 |
| Dining out (15 meals) | $150-250 |
| Coworking (optional) | $0-150 |
| Health insurance | $100-150 |
| Transportation (Uber/taxi) | $50-100 |
| Entertainment | $100-200 |
| Total | $1,130-1,870 |
Getting Started: Step by Step
Research and prepare
Confirm your employment allows remote work from Paraguay. Review your tax situation with a professional. Join expat groups to connect with developers already there.
Visit for 2-4 weeks
Enter visa-free (90 days for most nationalities). Test internet, explore neighborhoods, and visit coworking spaces. Villa Morra is the recommended starting point.
Start residency process
Hire an immigration lawyer ($1,000-1,500). Gather documents: FBI background check (US), birth certificate, passport. Process takes 2-3 months.
Set up banking
Open a local bank account (Banco Itaú or Atlas are expat-friendly). Set up Wise for receiving payments. Get a Paraguayan phone number.
Establish your base
Sign a rental lease (typically 1-2 years), set up fiber internet, and create your home office. Most developers work from home with occasional coworking.
Frequently Asked Questions
Do I really pay 0% tax on my developer salary in Paraguay?
Yes, if you work remotely for a company outside Paraguay. Paraguay uses territorial taxation—only income sourced within Paraguay is taxed. Your salary from a US or EU company is foreign-sourced and therefore untaxed. You still need to file in your home country (Americans have worldwide taxation obligations) but can use Foreign Earned Income Exclusion (FEIE) to offset.
Is the internet fast enough for development work?
Yes, in expat neighborhoods like Villa Morra. Fiber optic internet (100-300 Mbps) is available and reliable. I recommend Tigo or Personal for fiber. Video calls, git operations, and cloud development all work fine. Get a backup mobile hotspot for redundancy.
Can I keep working for my US company from Paraguay?
Usually yes, but check your employment contract. Most remote-first companies allow international work. Some larger companies have restrictions due to tax/legal complexity. Many developers transition to contractor status (1099) which gives more location flexibility.
What about US taxes as an American developer?
Americans are taxed on worldwide income regardless of residence. However, you can use the Foreign Earned Income Exclusion (FEIE) to exclude up to $126,500 (2024) of foreign earned income. Combined with the Foreign Tax Credit (for any Paraguay taxes, minimal) and housing exclusion, most developers significantly reduce their US tax burden.
How is the tech community in Asunción?
Small but growing. There are no major tech hubs or accelerators. Most developer expats work remotely for international companies rather than local startups. You'll find community through expat groups, coworking spaces, and online communities. If tech networking is crucial to you, Medellín or Lisbon might be better fits.
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