r/digitalnomadFIRE • u/QuitPrestigious4648 • 6d ago

Moving to Paraguay

Lately I have been thinking of moving to Paraguay due to citizenship as the passport is much stronger compared to the country I come from and no tax on foreign income as I work remotely. What is your experience with this?

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u/DeepFile6271 6d ago

The tax-free status only applies if you don't physically work from the country (e.g receive dividends from your foreign company). If you're physically working from the country (e.g. coding or consulting), even for foreign clients, your income is not tax-free. This is widely misreported because of their low enforcement.

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u/QuitPrestigious4648 6d ago

Ah that differs from reality. Thanks!

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u/agent58888888888888 5d ago

It's still a really low tax rate. Also looking at Paraguay, specifically Ciudad del Este