Tax Atlas

Am I a tax resident of Paraguay?

Short answer: usually yes once you cross 120 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 2026-10-26 in a year. But a day count is only the headline test — a home, family, or economic ties can pull you in sooner, and staying under it does not automatically keep you out.

Verified October 26, 2026 by Henning Stanger, Authorized Accountant (Autorisert regnskapsfører) · not tax advice

The residency test in Paraguay

The number that decides it: 120 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 2026-10-26. Cross that in a year, and Paraguay counts you as tax resident. PwC says an individual who spends more than 120 days in a year in Paraguay is tax resident, and Ley 125/1991 article 152 uses the same 120 days only to presume a habitual residence for fiscal domicile. The DNIT instead defines a resident individual by a permanent residence permit, so treat the day count as a presumption and not as a standalone test.

Tax year period
1 January to 31 December (as of 2026)PwC Worldwide Tax Summaries“Tax liability will be deemed to originate upon the close of the fiscal year, which will coincide with the calendar year.”View source · accessed 2026-10-26 — The Paraguayan fiscal year coincides with the calendar year, so the IRP tax year runs from 1 January to 31 December. The annual IRP return is due in March of the following year.
Residency test
The DNIT and Decreto 3181/2019 treat an individual as resident for tax purposes only with a permanent residence permit, and the decree still cites the replaced Ley 978/1996. A Paraguayan law firm argues that temporary residents with a cedula and RUC can also be treated as residents, which the DNIT texts reviewed here do not confirm. [source]DNIT (Direccion Nacional de Ingresos Tributarios), Preguntas Frecuentes“En el caso de la persona física, se considerará Residente a los efectos fiscales a aquel que cuente con residencia permanente en el territorio de la República conforme a la Ley N° 978/96 «De Migraciones» y sus modificaciones.”View source · accessed 2026-10-26

If you're close to the line

A day count only helps if the count is right. Travel that crosses midnight, short trips home, and which end of a stay counts as arrival or departure all change the total — and get miscounted constantly.

The free 183 Days residency tracker logs your actual travel and checks it against Paraguay’sverified threshold, so you are working from a real count instead of a guess.

What residency actually changes

Once you are tax resident, Paraguay generally taxes your worldwide income, topping out at 10%PwC Worldwide Tax Summaries“10% equal to or greater than PYG 150,000,001.”View source · accessed 2026-10-26. The top IRP rate on earned income is 10% on annual net income above PYG 150 million, and PwC reports no other income taxes such as a surcharge or local tax. The 9% employee IPS social security contribution is separate and is not included in the 10%. Stay a non-resident, and Paraguay typically taxes only income sourced there.

Full picture: Paraguay tax guide.

Frequently asked questions

How many days can I spend in Paraguay before becoming a tax resident?

120 days. PwC says an individual who spends more than 120 days in a year in Paraguay is tax resident, and Ley 125/1991 article 152 uses the same 120 days only to presume a habitual residence for fiscal domicile. The DNIT instead defines a resident individual by a permanent residence permit, so treat the day count as a presumption and not as a standalone test. Arrival and departure days are counted according to Paraguay’s own rule, not a universal convention — check the source below for the exact method.

Can I become a tax resident of Paraguay even under the day count?

Yes, in some cases. Paraguay also has rules beyond the simple day count — see the detail below. A permanent home, family, or economic ties can trigger residency independent of days spent.

What does tax residency in Paraguay actually cost me?

Paraguay’s income tax tops out at 10%. The top IRP rate on earned income is 10% on annual net income above PYG 150 million, and PwC reports no other income taxes such as a surcharge or local tax. The 9% employee IPS social security contribution is separate and is not included in the 10%. Residency is what makes you liable for it in the first place — non-residents are typically taxed only on Paraguay-source income, not worldwide income.

Sources

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When to talk to an advisor

This page maps Paraguay’s general residency test. It cannot weigh your treaty position, your specific ties, or the timing of a move. If meaningful money depends on the answer, have a qualified advisor in Paraguay (and in your home country) review your situation before you act.