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Tax residency in Paraguay: who pays income tax, and how much
Short answer
For the DNIT, the tax authority, a person is a tax resident of Paraguay if they hold permanent residency. Personal income tax (IRP) applies to income the law treats as Paraguayan-source: 8% to 10% on earned income once gross taxable earned income passes ₲80,000,000 (about 13,479 USD) in a year, and 8% on capital income. A non-resident’s taxable Paraguay-source income is subject to non-resident income tax (INR) at 15% of a base that depends on the income type. If the DNIT accepts the request, it issues the tax residency certificate within 10 business days of filing, for a treaty claim or another tax purpose.
Tax residency requirements in 2026
DNIT sources checked again on October 17, 2026. The steps below explain each requirement.
- Hold permanent residency. The DNIT treats as a tax resident any individual who holds it under the migration law (Decree 3181 of 2019, article 2), and its definition gives no number of days in the country.
- Hold an ID issued in Paraguay, a cédula or passport, to register with the RUC, the taxpayer registry.
- Register with the RUC within 30 business days once your gross taxable Paraguayan-source earned income passes ₲80,000,000 (about 13,479 USD) in the year.
- File a return each March once you are registered for earned income tax (IRP-RSP).
- For the tax residency certificate, add a copy of your cédula and your record of entries and exits from Migraciones for the year concerned.
The steps
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Get permanent residency
The DNIT treats as a tax resident any individual who holds permanent residency under the migration law (Decree 3181 of 2019, article 2). In an in-between situation, such as temporary residency, have your status confirmed by an accountant (contador) or through a written query to the DNIT.
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Get the cédula
Registering with the RUC, the taxpayer registry, requires an ID issued in Paraguay: a valid cédula or passport issued in Paraguay. For a foreigner with temporary or permanent residency, the RUC number is their cédula number.
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Register with the RUC
For earned income tax (IRP-RSP), register or update your RUC within 30 business days starting the day after your gross taxable Paraguayan-source earned income, counted from January 1, exceeds ₲80,000,000. The DNIT can register you itself if you miss the deadline. Apply online through Marangatu with both sides of your ID scanned as a PDF of up to 10 MB and a color photo of your face next to the ID; bring the original when the DNIT calls you in.
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File in March
Once registered for IRP-RSP, file each March for the previous year's income, even if it is below ₲80,000,000. If it stays at or below that amount for 2 consecutive tax years, the filing obligation ends from the following tax year; update your RUC with the DNIT. Capital income (IRP-RGC) is declared separately.
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Request the tax residency certificate
It proves your tax residency to another tax authority, for a double taxation treaty claim or another tax purpose. The request, on the DNIT form, includes a copy of your cédula and the constancia de movimiento migratorio from Migraciones (your record of entries and exits) for the year concerned; a taxpayer must also have a RUC and be up to date with their obligations. If the DNIT accepts the request, it issues the certificate within 10 business days of filing and sends its decision through the Marandu mailbox or by email. The certificate is valid for 1 year.
Tax rates
| Income | Rate |
|---|---|
| Earned income: net income up to ₲50,000,000 (about 8,425 USD) | 8% |
| Earned income: from ₲50,000,001 to ₲150,000,000 (about 25,274 USD) | 9% |
| Earned income: above ₲150,000,000 | 10% |
| Capital income and gains | 8% |
| Non-resident, Paraguayan-source income (INR) | 15% of a statutory base; for an asset located in Paraguay, excluding shares and equity interests, the base is 30% of the sale price before VAT |
The earned income rates apply bracket by bracket to net income once gross taxable earned income for the year passes ₲80,000,000 (about 13,479 USD); below that, no tax is due. Net income deducts, among other things, personal and family expenses made in Paraguay, such as food, clothing and rent, backed by invoices.
Exempt income includes interest on deposits in the country's banks, finance companies and cooperatives, exchange gains on foreign currency holdings, the 13th-month bonus (aguinaldo) and sales of movable goods of up to ₲20,000,000 a year. Amounts from Law 6380 of 2019, confirmed by the DNIT FAQ on October 17, 2026; dollar amounts use the Banco Central del Paraguay reference rate of September 22, 2026 (₲5,935 to 1 USD).
Income from abroad
The law subjects to IRP income from activities carried out in Paraguay, from assets located there or rights used there, and services provided from abroad to Paraguayan taxpayers.
In a formal ruling dated Dec 22, 2025, the DNIT treated independent services performed from Paraguay for foreign clients as Paraguayan-source income, including the portion done there when work spans countries. For employment income or a specific arrangement, ask an accountant (contador) or submit a written query to the DNIT before moving.