Paraguay has long attracted the attention of foreign investors and expats thanks to its lenient tax system and relatively straightforward path to permanent residency. Paraguay citizenship provides visa-free access to approximately 148 countries worldwide (including the Schengen Area, the United Kingdom, Singapore, South Korea, and others).
The country has one of the lowest tax rates in the world — a maximum of 10%. Income earned outside of Paraguay is tax-exempt. The conditions are so attractive to investors that many scams have emerged, promising “passports in a month” or “citizenship without residency.”
Here’s an example of a forum post explaining how easy it is to obtain Paraguay citizenship:
“I have inside connections in the government. They issue a passport in a month for a gift of $40,000. No need to live in the country.”
That is, investors often expect to receive citizenship through a “pay money and get citizenship” scheme. However, Paraguay has no official citizenship-by-investment program of this kind.
Official Paths to Permanent Residence and Citizenship in Paraguay
Paraguay Citizenship by Birth
As in most countries in North and South America, anyone born in Paraguay becomes a citizen at birth. The citizenship of one’s parents is irrelevant. If you were born in Paraguay, you are a citizen. Foreign parents of a Paraguayan citizen can obtain a residence permit in Paraguay, and then citizenship after three years.
Paraguay Citizenship by Naturalization
First, you must obtain permanent resident status. Then, live in Paraguay for three years. See Constitution of the Republic of Paraguay, Article 148 (Ciudadanía por naturalización). Only then can you apply for naturalization (citizenship) in court. Requirements: age 18 or older; no criminal record; knowledge of Spanish and the basic principles of the Constitution; proof of legal income.
For stateless persons
A special law applies: Ley No. 6.149 “Protection and Facilidades for the Naturalization of Stateless Persons. It establishes simplified procedures and shortened deadlines.
Investment Residency in Paraguay (2025).
Paraguay offers permanent residence to foreigners willing to invest or contribute to the country’s economy. This is a legitimate permanent residence program, not a citizenship-by-investment program.
Main investment options:
Bank deposit. A minimum of approximately USD 5,000 in a government-owned or certified bank. This deposit serves as proof of financial solvency, not as a “fee” for residency.
Business or investment registration. Opening a company in Paraguay with a minimum authorized capital of approximately 70 million guaraníes (~10,000 USD). The business must be genuine—trade, agriculture, manufacturing, IT, etc.
Real estate or other assets. This asset alone does not automatically grant permanent residence, but can be used as proof of “economic activity” in the application.
Fraud, fake offers and fake passports cases in Paraguay
One of the most famous passport cases occurred in 2014. An article appeared in the local Paraguayan press about the arrest of German citizen Claudia Bettina Müller for document forgery. The article reported that federal police searched Müller’s home. They discovered high-tech printing and engraving machines, as well as boxes containing blank passports and counterfeit government forms.
Incidentally, in 2020, footballer Ronaldinho and his brother were caught entering the country with a fake Paraguayan passport. They appeared in court, where they were ordered to pay a fine of $200,000.
Another type of fraud: instead of a Paraguayan passport, the client receives only a temporary residence card (carnet). This is not even a national ID card (cédula), without which it is impossible, for example, to open a bank account. Some websites claim you can obtain citizenship without residency. The scammers demand upfront payment and then disappear.
Thus, obtaining Paraguay citizenship is a legal, but multi-step process. It requires time, compliance with residency requirements, and personal commitment. Any promises of “fast-track programs” or “citizenship by investment” are contrary to current law. APEX Capital Partners always offers only legitimate programs and does not recommend participation in any programs that are not included in the official list of options.
