Applying for the Paraguay Bitcoin Residency

The Paraguay Bitcoin Residency has been discussed ad-nauseum over the past year. However, you are about to discover it actually doesn’t exist!
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Gaining residency in another country is one of the, well worn, pathways to personal freedom. Subsequently, for many decades freedom seeking entrepreneurs have clamored to South American countries that provided a laissez faire faire experience. In recent years, this space has been dominated by Bitcoin enthusiasts and the Paraguay Bitcoin Residency is often discussed.

Subsequently, let’s dig in and see what Paraguay has to offer as far as residency options.

Paraguay Bitcoin Residency is not real
Paraguay is Bitcoin and Crypto Friendly

What is the Paraguay Bitcoin Residency Program?

Firstly, it’s important to understand that the internet is fantastically good at conflating two issues together. In this case, it’s the concept of a Paraguayan residency and their increasingly levels of crypto and bitcoin acceptance.

Unfortunately, there really is no such thing as a Bitcoin residency program in Paraguay. Seemingly, the concept was invented by an inept media who have little understanding of anything other than sensationalism.

Wait…I heard Paraguay is Bitcoin Friendly?

energy crypto paraguay
Recent Decisions are Energy Consumption by Miners in Paraguay Have Been Raised

This is largely true, and, like their other South American brethren, they have taken actions to increase the awareness and use of crypto related digital currencies. Subsequently, you can do many things with crypto in Paraguay that even I struggle doing in the West.

Unfortunately, this level of crypto acceptance does not, yet, extend to residency and immigration applications. Subsequently, you will still need to go through the normal procedures, and pay in fiat currency, to obtain your residency permit.

Is Paraguay Worth Obtaining a Residency in?

Obviously, this will very much depend on your personal circumstances, but the reality is that, for most people, it makes sense to have a South American bolt hole. Paraguay certainly fits the bill for this one as the country is relatively easy to obtain a residency permit for and provides a reasonable standard of living for westerners.

Additionally, you don’t actually need to reside permanently in the country to maintain your residency. Simply spending a single day every three years is enough to continue reaping the benefits of the program.

What Do I Need to Provide to Obtain a Permanent Residency Permit?

paraguay residency options
Residency is Easy to Obtain in Paraguay

You have a couple of different pathways for application for a residency permit. In short, you can make a bank deposit, make an investment, or apply as a retiree.

Making a Bank Deposit

  • Simply make a deposit to a local Paraguayan bank in the amount of Gs30,817,850 (around US$4,500) and immigration will process a residency permit for you. However, you will only be able to access this pathway if you are from one of the nations that can enter Paraguay without a visa (visa on arrival or visa waiver scheme).

Residency Via Investment

  • You can also receive residency through the nations investment program which requires the investment of US$70k. This money can be invested in a range of different asset classes with everything from property, engaging in commerce, agricultural, and a range of other activities which comply with the requirements.

Residency Via Retirement

  • Retirement is also a valid route for those seeking residency in Paraguay and the best thing is that there is no age restriction or requirement for retirement. This means that you can ‘retire’ at any age as long as you can show a monthly retirement income of at least US$1,000 a month.

What Documents Will I Need to Provide – Paraguay Bitcoin Residency

Paraguay Residency Documentation Requirements
Expect the Typical Document Requirements

You should expect to provide a standard raft of documents that is fairly typical for any immigration process. However, be aware that Paraguayan immigration can ask for anything they wish and, lately, they have been requesting quite a bit of information around your business and source of funds.

Typical Documents:

  • Passport
  • Birth Certificate
  • Police Record Check
  • Medical Certificate and Check from a Paraguayan Doctor
  • Proof of Residence in Paraguay
  • An Executed Affidavit in Paraguay

The hardest part about all of this is that you will need to have the documents formally translated into Spanish. I don’t know about you…but I do not speak Spanish and I’m always wary about translations, so I often get it checked by a third party just to be sure!

How Long Does it Take?

Expect the whole application process to take around 90-days from the point that you submit everything that is required. In many cases, it can be quite a bit quicker, but it very much depends on your nationality and the ability of the authorities to undertake appropriate checks.

Is Citizenship an Option?

Yes. You can absolutely obtain Paraguayan citizenship after three years as a permanent resident. However, there are definitely some caveats to this that you should be aware of. Firstly, despite the country having almost no requirement to live there…you will need to demonstrate that you are resident at least 183 days per year to apply for citizenship.

Additionally, dual citizenship may also be a problem for you if your country is not one of the few that have an agreement on the issue with Paraguay. Unless your home nation is on this exceedingly small list than you will be expected to renounce your home citizenship.

On the benefits side to citizenship, probably the biggest advantage is that you can settle in any MERCOSUR country (Brazil, Argentina, Uruguay) without the need for a visa. This may work quite well for you if you like to move around and/or change countries within South America often.

Finally, the taxation arrangement is also quite attractive with Paraguay having a territorial tax system. This means that you will only be expected to pay tax on locally sourced income and not on your worldwide income. This is very attractive to many crypto entrepreneurs and those looking to legally minimize their tax obligations.

Conclusion – Paraguay Bitcoin Residency

In short, there really is no such residency program in Paraguay and you will not be able to obtain residency solely based on Bitcoin. You will still be expected to go through the standard program of applying and paying in good old Uncle Sam Greenbacks.

However, Paraguay is relatively crypto friendly, and it would appear as if this trend were likely to continue in the medium term. Subsequently, given all the other benefits of Paraguayan residency, it might not be a bad idea to maintain tax residency in the country especially if most of your business is crypto denominated.

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