Paraguay
Standard temp + Investor Pass routes.
Updated May 2026 · After NHR's end + Golden Visa changes
Last reviewed: Fact-checked against official sources
Paraguay vs Portugal
South America's quiet option and Europe's favourite, after the rules changed.
Portugal was the most-recommended second residency in the world from roughly 2017 to 2023, thanks to the Non-Habitual Resident (NHR) flat-tax regime and the open Golden Visa real-estate route. Both have changed. NHR for new residents ended on 31 December 2023, replaced by a narrower IFICI regime targeted at scientists and skilled professionals. The Golden Visa stopped accepting real-estate investments in October 2023. Portugal is still excellent for Schengen access and lifestyle; the tax case is no longer obvious. Paraguay's case has not changed: territorial tax, low cost, simple residency.
At a glance
| Parameter | Paraguay | Portugal | Edge |
|---|---|---|---|
| Residency cost (gov fees) | ~US$ 460 | D7 ~€500–1,000 + legal €2,000–5,000; Golden Visa €€€ | Paraguay |
| Investment requirement | None for standard route | D7: €820/mo proof. Golden Visa: €500,000 fund / €250,000 cultural / €350,000 R&D | Paraguay |
| Time to PR | Direct PR via Investor Pass | D7 / Golden Visa → 5 yrs to PR + citizenship eligibility | Paraguay |
| Tax for new residents | 0% on foreign income (territorial, permanent) | NHR ended Dec 2023. New residents pay normal Portuguese tax (worldwide income up to 48%). IFICI for some skilled categories. | Paraguay |
| Wealth tax | None | AIMI (Adicional ao IMI) on Portuguese real estate >€600K; no global wealth tax | Tie |
| Minimum stay to keep residency | None for PR | D7: 16 months in first 2 yrs + 28 in next 3 yrs; Golden Visa: 7 days/yr | Paraguay (D7) / Portugal (GV) |
| Citizenship clock | 3 yrs PR | 5 yrs legal residence (was reduced from 6 in 2018; current debates to extend) | Paraguay |
| Schengen / EU access | None | Full Schengen + EU freedom of movement once citizen | Portugal |
What does each residency actually require?
What does each residency actually require?
Portugal still has good residency routes but the tax sweetener that anchored the global pitch is gone.
Portugal
D7 Visa (passive income / pension): proof of €820/month income (1× Portuguese minimum wage), suitable for retirees and remote workers with stable income. D8 Visa (digital nomad, 2022): US$ 3,480/month income proof. Golden Visa: €250,000–500,000 investment in funds / cultural / scientific (real-estate option closed October 2023). All routes lead to PR after 5 years and citizenship eligibility at 5 years.
How is foreign income taxed in each?
How is foreign income taxed in each?
The big change. NHR is gone for new residents from 2024 onward.
Paraguay
Territorial. No expiry. Foreign-source permanently outside the IRP base.
Portugal
NHR ended 31 December 2023 for new residents. Existing NHR holders keep their 10-year regime to its expiry; anyone applying from 2024 onward pays normal Portuguese tax — worldwide income, brackets up to 48% personal. The replacement IFICI regime offers 20% flat tax for new residents in specific scientific / R&D / startup-related occupations, but most relocators don't qualify. The Portugal tax case for non-IFICI relocators is now substantially weaker than 2017-2023.
Cost of living — what daily life costs
Cost of living — what daily life costs
Lisbon rent inflation is one of the developed world's most extreme stories of the past five years.
Paraguay
Asunción ~US$ 1,082/month single all-in.
Portugal
Lisbon ~US$ 3,026/month single all-in (Príncipe Real 1-bed €2,400, utilities €169, groceries €380). Lisbon rent has tripled in 5 years. Porto ~25% cheaper than Lisbon; Algarve very seasonal. Lisbon is now genuinely expensive by any comparable measure.
How long until a passport?
How long until a passport?
5 years vs 3 years.
Paraguay
3 years PR + language test + Supreme Court.
Portugal
5 years legal residence + A2 Portuguese language test + civics + clean criminal record. Reduced from 6 to 5 in 2018. Active 2025 political discussion about extending back to 10 years for non-CPLP nationals — not yet enacted but a real risk if you start the 5-year clock now.
Which one fits your situation?
Which one fits your situation?
If you don't need Europe, Paraguay is cheaper, faster, and cleaner on tax. If you do, Portugal is still the best Schengen path for moderate-income relocators — but the math has changed.
Pick Paraguay
You're optimising for tax efficiency, low cost, and simple paperwork. You don't need EU access. You value the 3-year (vs 5-year, possibly 10-year) citizenship clock. You're comfortable that the trade-off is being further from Europe.
Pick Portugal
You actually want to live in Europe and value Schengen access. You qualify for the new IFICI regime (scientist, R&D-startup, specific listed professions) or you're OK paying normal Portuguese tax. You can stomach Lisbon's rent (or you go to Porto / Coimbra / Algarve to mitigate). You want eventual EU citizenship and 5 years feels manageable.
Frequently asked
Frequently asked
Is NHR really gone for everyone?
For new applicants, yes — gone since 2024-01-01. Existing NHR holders (registered before Dec 31, 2023) keep their 10-year regime to its scheduled expiry. The replacement IFICI regime (20% flat tax, no foreign-pension exemption) applies only to scientists, R&D personnel, qualified startup founders, and some teaching/research roles — most retirees and remote workers don't qualify.
Is the Portugal Golden Visa still a real path?
Yes, but it's a different programme now. Real-estate investments, which were the historical bulk of GV applications, stopped being accepted in October 2023. What's left: €500,000 in qualifying investment funds, €250,000 in cultural heritage, €500,000 in research, or €500,000 in scientific projects. The 7-day-a-year minimum stay still holds, and citizenship eligibility is unchanged at 5 years.
Why did Portugal change all this?
Housing affordability politics. Lisbon and Porto rent inflation became politically toxic. NHR was blamed for housing-demand pressure; Golden Visa real-estate was blamed for property-market distortion. The 2024 government chose to close both rather than restructure incrementally. From an IFICI applicant in May 2026: the AT (Autoridade Tributária) IFICI application portal is functional but the eligibility-decision letter takes 4–8 weeks in practice, and a startup founder with documented Portuguese-incorporated equity + a science-park lease was approved in ~10 weeks total. Whether the broader 5→10 year citizenship change happens is a 2026 political question.
Does Paraguay residency give Schengen access?
No — Paraguay sits outside any Schengen or EU agreement. A Paraguayan passport (after 3 years of PR) gets you visa-free into roughly 146 destinations, including most of Latin America, the UK, Russia, Israel, and several Southeast Asian countries, but Schengen still requires a visa for short stays. If Schengen access is the point, Portuguese citizenship is the better long-term play.
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.