If you do the immigration process by yourself, then you need to rent an apartment. If you use a good consultant they'll arrange for an address (don't ask me how) which can be used for official purposes, and for which the government will issue a Life & Residence Certificate which is the best proof of address in the country, though you can't use it for mail or anything (you can rent a PO Box for that)
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[FOR EU CITIZENS] Problems when going Offshore - List
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If you do the immigration process by yourself, then you need to rent an apartment. If you use a good consultant they'll arrange for an address (don't ask me how) which can be used for official purposes, and for which the government will issue a Life & Residence Certificate which is the best proof of address in the country, though you can't use it for mail or anything (you can rent a PO Box for that)
I'm an EU citizen too so this tax residency is very appealing. The address they arrange will be ONLY used to get the life & residence certificate right? This is the address you'll show to banks when opening an account with them? With that tax residence certificate how is difficult to open a bank account in a different jurisdiction?
The Life & Residence certificate only says that you live in a certain address, it has nothing to do with tax residency. I never had any problems opening bank accounts in Paraguay and abroad (including the US), offshore companies, brokerage accounts and crypto-exchange accounts using the LR certificate in conjunction with the national ID.
The certificate is issued with a validity of 3 months (if you need a new one, just ask your agent).
As for tax residency, it's mostly self-declaratory and you can tick the "Country doesn't mandate citizens to have a TIN" checkbox. If you don't spend 183 days in Paraguay, still, who can claim you aren't a tax resident there if you are not living permanently elsewhere? And if you happen to be living permanently elsewhere - how would your bank report to that jurisdiction anyway?
@Martin Everson , in Germany there are banks where you can open a bank account without a residence/base. A Bank which does this would be DKB, i have a bank account there and can confirm. Maybe I am just lucky to be a German, because I can't confirm if they will open bank accounts for non-Germans.
/Edit: and by the way, I also never encountered any problems financing my lifestyle with my US business bank account. IRS doesn't want to see bills/invoices and my accountant just wants to have my banking export at the end of the year and he always said it's fine, 0% tax. I finance 95% of my lifestyle with my US company.
DKB only open accounts to Germans, Austrian and Swiss citizens.
So you probably are using an LLC with a US bank account? Have you had any problems opening a US bank account for your LLC as a non resident? Also, do you sell to US people and your accountant confirmed you are tax free because you are not US citizend and you don't live there, right?
@marzio opening the bank account in the US is only possible with personal visits. For non-US business the tax is 0%, if you want to do business within the US then you have to pay tax of course. (I also have one US business with which I do Tax Liens investments and with this I also make some US profits, so i regularly pay taxes for this entity.)
Ok, so being German is a big advantage if you want to be a PT I guess.
Ok, so being German is a big advantage if you want to be a PT I guess.
Yes, i know you have to go there to open a bank account, i was asking if you had hard times opening a business account for your LLC without being a US resident. So you showed your german passport, your permanent residence in Paraguay, the LLC formation documents and they openend the account? Do you also have a personal bank account separate from your LLC?
How much it cost the whole process?
I'm planning to you the permanent residency and ID Card, among other things, avoid CRS and mainly as a gateway to access Mercosul market, Brazil in particular.
About $2500 in fees + a $5,000 deposit which you can redeem at the end of the process. It's for proving you having "financial means", quite funny if you ask me how one could establish somewhere and live off $5,000. Regardless, you must pay the deposit in cash and only you may redeem it later on, so for that reason alone a second visit to Asuncion is needed. I used the second visit to open a bank account.
I had quoted with another company around $2,000 but they didn't seem so engaged and only gave me automated responses.
Did you brought $5000 in cash and exchanged there or used ATM machines to withdraw the money?
I brought cash. It was a better decision because as I discovered later, ATMs in Paraguay only disburse $300 per operation, and you pay a fixed fee in each withdrawal.
@marzio Can only tell for me of course. I didn't have a hard time to open a business bank account. However, during the time I was coding risk management software for a German bank I got some investment banker friends. One of them is my US bank account manager now. I don't know if this is a reason why I didn't had a hard time.
No, you do not rent an apartment. You just need to find a quiet house in a transient neighborhood that serves your purpose and note the address. Then locate closest comisaria for an application. Usually there are civilians hanging around the police station that are more than willing to co-sign your application for you. You turn the application and get your life residence for free. Procedure tested 2x for residence and drivers license. Some mid-range hotels downtown provide the same service for small gratuity. Agree PO Box is very useful
You wont get any preferential access to Mercusor market with residency. You will need citizenship, and that you will never get.
Are you sure about that? I think Paraguay ID Card is enough to do business as entrepeneur in Brazil without investment.
Hi @Outlander My question here comes (as I am new to forum but reading for hours): even if you manage to take a residency paper from Paraguay or anywhere in the world , you need to get the tax residency certificate, yes? So are they giving if you are not actually staying there 183 days? And assuming that your answer is YES, how you can manage it in the country that you really stay? I mean you probably live in your citizenship country but they think you are not there.. .can't this be seen with other ways by them?
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