Paraguay
Standard temp residency + Investor Pass.
Updated May 2026 · Two of the cheapest residencies on earth
Last reviewed: Fact-checked against official sources
Paraguay vs Georgia
two of the cheapest residencies on earth, sitting on very different geopolitical ground.
Georgia (the Caucasus country) and Paraguay are the two cheapest residencies on earth for low-friction relocators in 2026. Georgia gives you 1-year visa-free entry to 90+ nationalities and a famously low-bureaucracy 1% small-business tax regime. Paraguay gives you real territorial taxation, a 3-year citizenship clock, and 6,000 km of distance from active conflict. The trade is concrete: pick Georgia for the lowest immediate friction and best small-business rate; pick Paraguay for the long-term passport and geopolitical insulation.
At a glance
| Parameter | Paraguay | Georgia | Edge |
|---|---|---|---|
| Residency cost (gov fees) | ~US$ 460 | ~US$ 200–600 | Georgia |
| Visa-free entry / scout window | 90 days visa-free for ~90 nationalities | **365 days visa-free for 95+ nationalities** — the longest in the world | Georgia |
| Personal income tax (local income) | 8–10% progressive (IRP) | **1% flat for IE turnover up to ₾500,000 (~US$ 185,000)**; 20% above; 20% standard PIT | Georgia (small biz) |
| Foreign-income tax | 0% (territorial, permanent) | 0% (territorial) | Tie |
| Time to permanent residency | Direct via Investor Pass; standard 2 yrs | Long-term residence permit after 6 yrs of legal residence | Paraguay |
| Citizenship clock | 3 yrs PR | 10 yrs of legal residence + Georgian language test (rarely granted to non-CIS) | Paraguay |
| Cost of living (Asunción vs Tbilisi) | ~US$ 1,082/mo single | ~US$ 950/mo single | Georgia |
| Geopolitical stability | Stable; ~6,000 km from Russia/Ukraine conflict | Geographically next to Russia; 2008 war legacy; political volatility | Paraguay |
What does each residency actually require?
What does each residency actually require?
Georgia leads on residency cost; Paraguay leads on path-to-citizenship and stability.
Georgia
Short-term residence permit (1-year) based on Individual Entrepreneur (IE) registration, real estate ownership, work contract, or family ties. Renewable annually. Long-term residence permit after 6 years of legal residence. Real-estate investment of US$ 100,000+ qualifies for residency; lower bars for IE registration.
How is foreign income taxed in each?
How is foreign income taxed in each?
Both territorial in practice. Georgia adds a notable small-business rate.
Paraguay
Territorial. Foreign-source income outside IRP base permanently. IRP 8–10% on Paraguay-source income.
Georgia
Territorial in practice for non-tax-resident individuals (residence permit ≠ tax residency in Georgia; the 183-day test applies separately). For Georgian tax residents: Individual Entrepreneur (IE) status allows 1% on turnover up to ₾500,000 (~US$ 185,000) per year for most service businesses — one of the lowest small-business rates in the world. Above that threshold, 3% rate to ₾30 M; above that, 20% on profit. Standard personal income tax 20% flat. No wealth tax. No inheritance tax. Practical note from a May 2026 IE applicant: registration at the Tbilisi Revenue Service is genuinely walk-in (no appointment), takes about 90 minutes when you have a Georgian bank account already, and the Small Business Status opt-in is a separate online filing through rs.ge — both completed inside one business day, no agent required.
Cost of living — what daily life costs
Cost of living — what daily life costs
Tbilisi is slightly cheaper than Asunción for housing; slightly more expensive for groceries.
Paraguay
Asunción ~US$ 1,082/month single all-in.
Georgia
Tbilisi ~US$ 950/month single all-in (Vake 1-bed US$ 500–800 furnished, groceries US$ 300, utilities US$ 70, internet US$ 15, transit US$ 12). Cheaper than Asunción on rent, similar on utilities, more expensive on imported goods. Outside Tbilisi much cheaper.
How long until a passport?
How long until a passport?
Paraguay's clock is structurally far shorter.
Paraguay
3 years PR + language test + Supreme Court.
Georgia
10 years of legal residence + Georgian language test + history exam + clean record. Naturalisation is rarely granted to non-CIS nationals; practical citizenship via investment route (US$ 300,000+ in government bonds) is no longer available since 2018. For most foreigners, Georgia is a residency-only play.
Which one fits your situation?
Which one fits your situation?
Pick Georgia for short-term tax efficiency and the 1-year visa-free runway. Pick Paraguay for the long-term play (citizenship, stability, territorial-tax certainty).
Pick Paraguay
You want a real second passport in 4-7 years. You value geopolitical insulation from Russia/Ukraine dynamics. You want true territorial taxation regardless of how much time you spend in country. You prefer the Latin-American cultural setting.
Pick Georgia
You want the lowest-cost residency on earth and the longest visa-free scout window (365 days for many nationalities). You run a small business and want the 1% Individual Entrepreneur regime. You're not looking for citizenship — just a base. You're comfortable with the geopolitical situation.
Frequently asked
Frequently asked
Is Georgia's 1% IE tax really that simple?
For service businesses, largely yes. You register as an Individual Entrepreneur with the Revenue Service, opt into the Small Business Status, and turnover up to ₾500,000 (~US$ 185,000) a year is taxed at 1%. The catches: it needs real Georgian tax residency (183+ days/year), no employees on payroll under the IE itself (sub-contracting is fine), and no inventory-heavy retail. Some business types are excluded outright, financial services among them. For a freelance consultant or a remote developer, though, it's a genuine 1% regime.
Does Georgia have a digital-nomad visa?
No dedicated visa — and it doesn't need one. 95+ nationalities get 365 days visa-free on arrival. That's longer than most countries' nomad visas. Just enter, work remotely, leave once a year (or get a residence permit). Paraguay's standard residency is more substantive for long-term commitment but Georgia's visa-free runway is unique.
What's the political risk of choosing Georgia in 2026?
Georgia shares a border with Russia; the 2008 war left ~20% of its territory under Russian occupation (Abkhazia, South Ossetia). The current Georgian Dream government has moved closer to Russia, which has slowed EU accession talks. The country is not at war but the situation can shift fast. Paraguay's geographic and political distance from active conflict zones is a structural advantage for the same use-case.
Can I become Georgian by investment?
No — Georgia closed its citizenship-by-investment programme in 2018. Naturalisation now means 10 years of legal residence plus a Georgian language and history exam, and it's rarely granted to non-CIS nationals. Treat Georgia as a residency play, not a passport play. Paraguay's 3-year route to a real passport is a fundamentally different proposition.
Next steps
Next steps
Confirm Paraguay is your fit on the eligibility quiz, see the actual numbers on the cost calculator, then walk the full process on the residency guide.