Tax Atlas

Paraguay vs United States: tax comparison for expats

A sourced head-to-head on Paraguay and United States: tax-residency rules, income tax rates, special regimes, side by side. Income tax only, not tax advice.

Effective income tax by income

An effective-rate comparison for this pair isn’t available yet (one country’s full bracket table is still being verified). The sourced fact comparison below still applies — and the interactive tool covers every modelled country.

Paraguay vs United States, side by side

 ParaguayUnited States
Top income tax rate10%PwC Worldwide Tax Summaries“10% equal to or greater than PYG 150,000,001.”View source · accessed 2026-10-2637%PwC Worldwide Tax Summaries“For individuals, the top federal income tax rate for 2025 is 37%, except for long-term capital gains and qualified dividends”View source · accessed 2026-08-20
Tax-residency day threshold120 daysPwC Worldwide Tax Summaries“An individual is deemed to be tax-resident in Paraguay if one spends more than 120 days in a year in the country.”View source · accessed 2026-10-26183 daysInternal Revenue Service (IRS)“You will be considered a United States resident for tax purposes if you meet the substantial presence test for the calendar year. To meet this test, you must be physically present in the United States (U.S.) on at least:”View source · accessed 2026-08-20
Signature tax regime[source]PwC Worldwide Tax Summaries“Paraguay has signed Agreements to avoid Double Taxation with Chile, Qatar, Taiwan, United Arab Emirates, Uruguay and Spain.”View source · accessed 2026-10-26Foreign Earned Income Exclusion: USD 132,900 / yearInternal Revenue Service (IRS)“For tax year 2026, the foreign earned income exclusion is $132,900 up from $130,000 for tax year 2025.”View source · accessed 2026-08-20
Digital nomad visaNoNo
Nomad-visa income requirement——

Every figure links to its source and verification date. Full guides: Paraguay · United States.

Frequently asked questions

Is Paraguay or United States better for tax?

It depends on your income, residency status and which special regime you qualify for. Compare the residency rules, rates and regimes side by side below, and use the interactive tool for your own income.

Which has the lower tax-residency threshold, Paraguay or United States?

Paraguay treats you as tax resident after 120 days, and United States after 183 days. But ties like a home, family or economic centre can trigger residency on fewer days — never rely on a day count alone.

Does Paraguay or United States have a digital nomad visa?

Paraguay has no dedicated digital-nomad visa; United States has no dedicated digital-nomad visa. See the "Digital nomad visa" row below for the sourced detail.

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