Why Paraguay is the Perfect Base in South America
Why this little known country is actually a digital nomad's paradise
Paraguay?
"What's that some African Country?" -(response from an American friend)
Paraguay is a little known country in the heart of South America that most people haven't ever heard of. Why would this quiet landlocked country be a remote workers Paradise?
Five Reasons
Low tax
It's cheap
Sustainable
Freedom
Safety
Tax
This little Latin country just so happens to be one of the world's best tax residencies.
It operates on a territorial tax system, meaning that you are only taxed based on income that is generated in Paraguay. So if you are a remote worker and or entrepreneur and have work with foreign clients for a foreign based entity, guess what your tax rate is....
0%!!
This essentially makes Paraguay a secret off-grid Dubai.
But Nick, what if I want to start a local business or get a job?
In that case the personal income tax caps out at a whopping 10%!
There are also things like an IVA tax and a social security system for employees, but if you are an independent business owner, freelancer, or work for a foreign company, then your effective tax rate is between 0% and 10%
And of course there are deductions.
On nearly everything you buy!
Just keep your receipts (called facturas) for just about anything that you buy and they can be used to reduce your already small amount of tax,
Bringing it closer to 5%-7%!
Who needs Monaco when you can have some of the world's best steak here for under $15, while also paying little to no tax. Which leads me to the next point.
It's Cheap
Paraguay has one of the lowest cost of living in the world.
You can live in a modern high rise apartment, eat out everyday, go to bars every weekend, have a cleaning lady, and even a personal driver all for under $2000/month. Most people get by on much less than that.
My personal expenses rarely exceed $1500/month here.
And if you really needed to bootstrap it, it's possible to live here for $500/month
It's actually hard to spend money here, because you get so much bang for your buck.
For example
Uber/Bolt: $2-$5 to get across town
Eating at one of the best steak houses in the country: $14
A modern apartment: $300-$1000 depending on which part of the city you live in
Healthy grilled chicken and rice lunch at the mall: $2.10
Phone plan $15-$30 depending how much data you want
Groceries: rarely exceeds $50 unless you are getting some very high end items
Going to the emergency room: ~$40 for a consultation, exam, bloodwork, and ekg with no insurance!
Utilities: $50/month
The list goes on and on.
Be careful though because like any poor country, the locals will absolutely try to rip off foreigners.
If you want local prices feel free to book a consultation and I'd be happy to help
Sustainable
What if I told you that Paraguay, one of the poorest countries in Latin America, also happens to be one of the world leaders in exporting clean, renewable energy.
How is that possible, one word...
Itaipu.
Paraguay shares ownership of the Itaipu Hydroelectric Dam.
This incredible engineering wonder of the world produces more than enough electricity to power all of Paraguay!
Making Paraguay 100% energy independent.
In fact Paraguay has so much extra energy that the government is able to make a small fortune selling excess energy to Brazil. This was part of the reason why Paraguay used to have no income tax
It also makes energy very affordable.
I rarely pay more than 50$/month and I have air conditioning running nearly 24/7
This energy surplus has also paved the way for EV adaptation and Bitcoin miners. Paraguay has a bright future.
And regarding food, Paraguay has more cows than humans and produces more than enough crops to feed the entire country several times over.
This makes Paraguay one of the few countries in the world that could completely isolate itself and still be just fine.
Freedom
If you aren't sold yet, allow me to present a word that is particularly powerful to my fellow Americans
Freedom
If you are more of the libertarian/conservative type who wants government to leave you alone, then boy oh boy!
You are going to LOVE Paraguay
The government here is very small and not very powerful.
Sure there are lots of rules like any government, but enforcing those rules is an entirely different matter.
You see, Paraguayans (for the most part) are very relaxed people, and don't take themselves too seriously.
It's the polar opposite of lawsuit happy places like the U.S.
Where you are worried about getting sued if the neighbor's kid trips on your mailbox.
Or having a small party and having the police called on you
Or not starting a business because of the bureaucracy and licensing requirements
Or not being able to build what you want on your own land due to permitting issues
Paraguay is the kind of place where you can be yourself, and live completely stress free.
No police state here!
Safety
One of the biggest objections on why people won't move to Latin America is safety concerns. Paraguay is without a doubt one of the safest countries in Latin America. In fact in many areas it is safer than the United States.
People here are not violently divided on politics.
School shootings simply do not happen.
The murder rate is very low.
Protests in Paraguay are peaceful
Just like any country there are some bad areas (chacarita, and near the Brazilian border), but if you are living in any major North American city, then chances are you'd actually be much safer by moving to Paraguay.
The only crimes that you realistically need to worry about down here is theft and fraud.
Be careful who you do business with and exercise common sense when it comes to your personal items.
The expat community here is also very tight knit.
On the off chance you run into a problem there will be someone who is able and willing to help.
Closing
There are many reasons to choose Paraguay as your base in Latin America and I've only just scratched the surface.
But good things don't last forever, so I'd encourage you to get residency asap if any of the above are important to you, because things can change at any time.
The trend is to make having options harder, not easier for the average person.
Just a little over a year ago you could get instant permanent residence with just a $5000 refundable bank deposit, now you'll have to wait two years for the privilege
Paraguay is one of the few countries where residency is accessible to nearly anyone in my audience.
One word of warning though...
Once you take this leap it will be hard to go back to your old life.
Paraguay is calling, will you answer?
Until next time,
-Gringo Nick
If you are interested in learning more feel free to book a call with me
And if you are ready to pull the trigger, contact me, and I'll help you get residency!