Our valued sponsor

Question I've a Paraguayan residency - What're my real advantages now ?

#21
Register now
You must login or register to view hidden content on this page.
Lol crypto7figs :-D
I'll be curious to hear some success stories of this kind as well.

I'm randomly spending a month or so to Paraguay so far. I'll be back there in the next few months (again) to look for the right property to use for my residency considering last time I saw many great ones but I didn't have enough available cash. Once done that and once I'll have gotten my passport (a long fight, hopefully I'll have it within the end of 2023), I'll look for new ways to take advantage of this residency.
It's a great place if you agree to pay 10% in taxes (nothing wrong about this) but probably I was looking for a tax free solution at least for part of the income generated abroad. Still working on this ...
 
#23
I've been told by a local tax accountant that as part of the compliance process for any incoming payment, banks asks for an invoice you've issued for such funds and in such way you'll be indirectly forced to declare them.
You may probably issue a fake invoice, I don't know but for sure I don't want to have any issues not knowing what will happen and with the risk to loose the right to get a passport so the best thing might be to open my account abroad.
For now I'm still using my old EU address for my accounts outside the country which's not a good strategy for sure but this will change once I'll have my own property and permanent address.
 
#25
OffshoreResearch said:
I've been told by a local tax accountant that as part of the compliance process for any incoming payment, banks asks for an invoice you've issued for such funds and in such way you'll be indirectly forced to declare them.
You may probably issue a fake invoice, I don't know but for sure I don't want to have any issues not knowing what will happen and with the risk to loose the right to get a passport so the best thing might be to open my account abroad.
For now I'm still using my old EU address for my accounts outside the country which's not a good strategy for sure but this will change once I'll have my own property and permanent address.
Click to expand...

Paraguayan banks are trash anyway. Maybe consider a visit to the US and open there.

Wells Fargo is very easy, although quality is kinda meh.
Chase is very nice imo. BoA too if you manage to get one.

Depending on your volume you might even make do with some EMI
 
#26
I am planing to go to Paraguay soon and I've spoken with locals (I speak spanish) and accountants. To put things short, if you don't bring income you will not be taxed on that. Also, if you really want to bring income to banks, you don't need to pay the 10% IVA tax, but you need to pay IRP (annual personal tax) at the end of the year. HOWEVER, the IRP is calculated based on your NET income. Basically if you only bring to paraguay what are you going to pay, as long as you spend everything (and has the receipts for that), you will barely pay any tax (8% on net income below $7k). However I understand how this may be a problem if you want to bring money in order to invest large sums here.

P.S. There are no CFC rules in Paraguay. So you can use an offshore to receive payments and pay yourself dividends without any tax if you want an extra layer of protection for the IVA (although you probably can't avoid the IRP if you bring income, even though it's a tax free dividends, because banks expect you to issue an invoice for payments). It's probably the weirdest system in the planet (a literal accountant told me I can invoice just the income that I need to spend). But there is no place more low-profile and that can be in practice 0 tax if you know how to play the system.

Edit: One curious thing you can think about it is that because Paraguay is Non-CRS and Non-Fatca, most people see Paraguay as a way to protect themselves from their local authorities, however if you become a resident there you should start being careful of the laws of the country, and the fact that they don't share info is a two-way street, where there is no way for Paraguay to see what you have abroad. Suddenly, a country like US or Germany become an offshore paradise from the POV of Paraguay.
 
Last edited:
#28
crypto7figs said:
Well, I mean, why put money into the country? Why not just get the tax and open a company and bank account elsewhere?
Click to expand...
Yes. basically if you dont want to bring money you will not pay any tax in practice. I think the only reason to bring a substantial amount of money is if you need to hide something from CRS/FATCA or if you really want to establish a life there and buy properties and stuff. Many people invest in lands / farming sector for example.
 
#30
OffshoreResearch said:
Hi All,
I'm a Paraguayan resident since 3 years and now I've submitted a demand for the local passport/citizenship.

In the past some noises moved me here with the belief this was an extraterritorial tax country (taf free for my foreign income) but this wasn't fully correct.
After having heard a couple of local tax advisors, I discovered that only income already taxed abroad will be exempted in Paraguay.

I worked a lot for my residency and I'm working to get the passport.
I've invested a lot in terms of time and money but what're the real advantages for my online activity ?
Now I'm buying/selling domain names ... but this income is taxed at 10% if carried to a Paraguayan bank.
I'll be also forced to issue an invoice for any incoming payment or the bank won't accept my funds.

Am I doing something wrong ? Or am I missing some other advantages ?
Ok the local passport is a great thing but it won't beat the advantages of my European passport ...

So I spent months of hard work hoping to have found a tax-free country while now I see I should pay a net 10% but at that point it was much easier opening an European company taxed at 10% ...

I'm collecting some feedback having still the belief I'm missing some possible advantages related to my position.
Thank you.
Click to expand...
You can pay directly with crypto in most places in PY and do the same in Argentina, and no one would bat an eye! Enjoy your freedom! ;)

lukar said:
Won't they accept it even if it comes from a regulated and licensed exchange abroad?
Click to expand...
Why? You can pay with crypto in PY directly without converting it to fiat.
What you are suggesting is akin to getting a CASH ADVANCE from your credit card and then using that cash to pay for things, instead of paying directly with your credit card. Why would you do this? :rolleyes:
 
#31
For example to buy a property like a house. If it comes from a legit exchange the SoF should be already cleared, and for an early adopter with many trades along the years SoF may be difficult to prove.
 
  • Haha
Reactions: jafo
#32
lukar said:
For example to buy a property like a house. If it comes from a legit exchange the SoF should be already cleared, and for an early adopter with many trades along the years SoF may be difficult to prove.
Click to expand...
Nobody (except banks) asks for this in PY! smi(&%

Have you been there?

PS. Of course, if you ask banks, lawyers, accountants, etc etc, they'll recite every law you can imagine to shove themselves as a middleman for an extra 20 - 30% they do NOT deserve! Go hang out in Paraguay first and absorb the scenery. You should figure this out in about 2 to 3 months. Hard to explain with words!
 
  • Like
Reactions: lukar, cryptofriendly, ilke and 1 other person
#33
jafo said:
Nobody (except banks) asks for this in PY! smi(&%

Have you been there?

PS. Of course, if you ask banks, lawyers, accountants, etc etc, they'll recite every law you can imagine to shove themselves as a middleman for an extra 20 - 30% they do NOT deserve! Go hang out in Paraguay first and absorb the scenery. You should figure this out in about 2 to 3 months. Hard to explain with words!
Click to expand...

No I haven't. I'm just considering to move there from an EU tax hell.
A major obstacle that I am seeing is that I would lose my euro accounts with little certainties about the functionality of the local ones.
 
  • Like
Reactions: jafo
#35
lukar said:
No I haven't. I'm just considering to move there from an EU tax hell.
A major obstacle that I am seeing is that I would lose my euro accounts with little certainties about the functionality of the local ones.
Click to expand...
I suggest you join Mentor Gold and DM this vero gentiluomo, @JohnnyDoe, about how to deal with "banksters."
You can read more about it here: Heads up: just had my Wio account suspended

Everything he has said concerning this has been right on the money! You may need to get the unedited & uncoated version of banking reality from him. I am NOT competent in the least to explain it to others. I just follow what he says!

PS. Also, do NOT rely on banks in Paraguay. They are forced by the OECD and the US to do things that are NOT in your best interest. The average wage in Paraguay is a few hundred (300 - 400) Euros.

PSS. Also, for the uninitiated & gullible... the LARGEST and MOST staffed American Embassy in Latin America is in Asunción, Paraguay! Need I say more? :rolleyes:

PSSS. As long as you keep to yourself and quiet, NO ONE cares, and NO ONE will bother you! Don't start sh1t, and there will be NONE!
There are NO mutes in prison! Ever!
 
  • Like
  • Love
Reactions: Freetrade, ilke, 0xDEADBEEF and 2 others
#39
daniels27 said:
How much can you recommend Paraguay as a place to live?
Click to expand...
We haven't heard anything from @OffshoreResearch in almost one year.

1717871224418.webp


I think life must be good. No news = good news! ;)
 
#40
lukar said:
Won't they accept it even if it comes from a regulated and licensed exchange abroad?
Click to expand...
If they are transfered from a regular licensed exchange like binance or kraken you won't see big troubles, yet you need to have SOF!
lukar said:
A major obstacle that I am seeing is that I would lose my euro accounts with little certainties about the functionality of the local ones.
Click to expand...
Open a Wise account while you live in the EU and keep it when you move, You could also open a Revolut account as backup.
 
  • Like
Reactions: lukar and jafo
Register now
You must login or register to view hidden content on this page.
You must log in or register to reply here.

Forum Announcement

Latest Threads

Offshore Bank Accounts
Top Bottom
Back