Paraguay Citizenship by Investment: Expert Guide 2026

5 Advantages of Holding a Paraguayan Passport

For investors and expatriates looking for a “Plan B,” Paraguay’s passport has become one of the most underrated assets in the world of global mobility. While it may not yet have the brand recognition of European documents, it offers a strategic mix of travel freedom, favorable tax conditions, and regional advantages that are hard to ignore.

1. Broad Visa-Free Travel Access

A Paraguayan passport currently allows visa-free or visa-on-arrival access to more than 140 countries, including all of South America and Europe. Holders can travel freely across the Mercosur bloc (Argentina, Brazil, Uruguay, and others) with minimal bureaucracy, a key benefit for businesspeople operating in the region. At present, Paraguay continues to negotiate new agreements with different countries, steadily improving its ranking on the Global Passport Index.

2. A Strategic Base in South America

Paraguay’s passport isn’t just about travel, it’s also about positioning. As a Mercosur member, Paraguayan citizens have the right to live and work in other Mercosur countries, including economic powerhouses like Brazil and Argentina. For entrepreneurs or retirees, this opens doors to a region of more than 295 million consumers and diverse markets without additional residency hurdles.

3. Favorable Tax Environment

Unlike many Western countries, Paraguay operates under a territorial tax system. This means citizens are only taxed on income earned within Paraguay. For global entrepreneurs, digital nomads, or investors with income streams abroad, this translates into a 0% tax rate on foreign income. With Paraguay’s cost of living being among the lowest in South America, Numbeo ranks Asunción nearly 60% cheaper than New York, and citizenship offers both savings and financial flexibility.

4. Political Stability and Safety Net Value

While often overshadowed by its neighbors, Paraguay is considered one of the region’s more stable democracies. For many investors, a Paraguayan passport represents a reliable “insurance policy”, a second nationality that ensures access to residency and services in a relatively safe, affordable country. It is particularly attractive for families from regions facing political or economic turbulence, offering a long-term backup plan.

Meanwhile, in regional safety rankings, Paraguay is often cited among the safer destinations in South America. For example, World Population Review notes Paraguay’s GPI (Global Peace Index) score is 1.942, affirming its status as one of the continent’s more peaceful nations. 

5. Accessibility of Citizenship Compared to Other Countries

One of Paraguay’s greatest advantages is how attainable its passport is compared to other jurisdictions. Many countries require 5–10 years of continuous residence before citizenship becomes possible. Paraguay, in contrast, offers a clear and structured process that can lead to a passport in just four years, provided residency requirements are met. This makes it one of the fastest naturalization tracks in Latin America, second only to Argentina.

Paraguay Citizenship through Residency by Investment Explained

Paraguay offers a straightforward path to citizenship for foreign investors through its Residency by Investment framework. Unlike many countries that require large contributions, Paraguay sets relatively accessible thresholds and provides long-term benefits for those willing to establish genuine ties with the country.

The journey typically begins with securing permanent residency under the investment category. After maintaining residency and demonstrating integration, such as maintaining a local address, paying taxes, or showing business activity, applicants may qualify to apply for naturalization and Paraguayan citizenship. This process is facilitated by the SUACE program (Sistema Unificado de Apertura y Cierre de Empresas), which centralizes and accelerates investment procedures.

The SUACE program, created by the Ministry of Industry and Commerce, is Paraguay’s one-stop shop for company incorporation and investment registration. Its main purpose is to encourage foreign direct investment by reducing bureaucracy and offering legal security to investors. The key features of the program include:

• Fast-track incorporation – Businesses can be registered within weeks rather than months.
• Investment Certification – Investors receive official recognition of their status, which is essential for applying for residency under the investor category.
• Flexible investment options – The program covers a wide range of sectors, including real estate, agriculture, manufacturing, and services.
• Residency eligibility – Once certified, investors can apply for permanent residency, provided they meet the financial and legal requirements.

After securing residency through SUACE, investors can pursue citizenship after maintaining ties with Paraguay. The general requirement is three years of permanent residency (with some variation depending on circumstances), along with proof of integration such as tax filings, property ownership, or local business operations.

Overall, the SUACE program provides not only a structured entry point for investors but also a clear legal pathway toward Paraguayan citizenship, making it an attractive option for entrepreneurs and global citizens seeking a second passport.

Investment Requirements for Paraguay Citizenship and Residency

Paraguay stands out in the global residency and citizenship landscape because of its low entry threshold and flexible investment structure. Through the SUACE program, foreign investors can establish permanent residency and eventually qualify for citizenship, provided they meet certain financial and operational requirements.

To qualify, investors must commit at least USD 70,000 into Paraguay’s economy. Compared with most residency and citizenship programs worldwide, this requirement is remarkably accessible, positioning Paraguay as one of the most cost-effective options for investors.

Unlike programs that require an upfront lump sum, Paraguay allows flexibility:

• The investment can be deployed gradually, spread out over a 10-year period, in line with a structured business plan.
• Many applicants prefer transferring the full amount early on to demonstrate financial capacity, but the system accommodates long-term strategies as well.

The SUACE framework provides considerable freedom in structuring a qualifying investment, provided it creates real economic value. The main routes include:

1. Establishing a new company. The most straightforward method is incorporating a Paraguayan corporation through SUACE. The sector can be chosen freely, ranging from agriculture, manufacturing, and technology to retail or services.
2. Real estate investment. While direct property purchases don’t automatically qualify, real estate can form part of your business plan. Typically, investors set up a company that acquires and manages property, making the real estate an operational asset.
3. Expanding an existing business. Investors may inject capital into an established Paraguayan enterprise, as long as it satisfies the USD 70,000 requirement and generates economic activity.

To ensure genuine commitment, investors are required to file a sworn declaration with the Ministry of Industry and Commerce (MIC), confirming their business plan and investment intent. They must also incorporate the company within 90 days of receiving permanent residency, as failure to do so may result in the revocation of residency status. As an alternative to the USD 70,000 capital investment, investors may instead qualify by creating at least five local jobs, demonstrating their contribution to Paraguay’s economic development. The detailed breakdown of the program’s requirements are outlined below. 

SUACE Program – Key Investment Requirements

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Documentation Requirements for Paraguay Citizenship and Residency

Documents Required for Residency

To obtain a residence permit in Paraguay, applicants must present a comprehensive set of documents that comply with local legal requirements. The package usually includes:

• Identification Documents:
  
  • Valid passport and/or national identity card.
  • Copies must be notarized and apostilled in the country of origin.
• Entry Documentation:
  
  • Entry visa (if required by nationality).
  • Entry stamp proving legal entry into Paraguay.
• Civil Status Documents:
  
  • Birth certificate.
  • Marriage, divorce, or widowhood certificate, if applicable.
  • All civil documents must be legalized or apostilled and translated into Spanish.
• Criminal Background Checks:
  
  • Certificate of clean criminal record from the applicant’s country of origin and from countries of residence in the last 3 years.
  • Interpol clearance certificate.
  • Certificate of foreigner’s personal data issued by the National Police of Paraguay.
• Additional Declarations and Certificates:
  
  • Medical certificate of good health.
  • Sworn declaration of commitment to respect Paraguayan laws and constitution.
• Special Case – Investors:
  
  • Certificate from the Ministry of Industry and Commerce confirming investor status under the SUACE program.
• Official Fees:
  
  • Government filing fees of approximately PYG 2.69 million (around USD 350), plus minor costs for documentation.

All documents in languages other than Spanish or Portuguese must be translated into Spanish by a certified translator in Paraguay. Apostille or consular legalization is mandatory. The complete application is submitted to the National Migration Directorate (Dirección Nacional de Migraciones) in Asunción.

Documents Required for Citizenship

Once permanent residency is held and the required years of residence are completed, an applicant may proceed with naturalization. The documentation package generally includes:

• Identification and Residency Proof:
  
  • Valid passport.
  • Paraguayan permanent residence card and cedula (national ID).
• Civil Status Documents:
  
  • Birth certificate.
  • Marriage or divorce certificates, if applicable.
  • All documents duly apostilled/legalized and translated into Spanish.
• Criminal Background Checks:
  
  • Updated police clearance from Paraguay.
  • Confirmation of clean criminal record from the applicant’s country of origin.
• Residency Evidence:
  
  • Proof of continuous residence in Paraguay (utility bills, lease agreements, tax payments, or employment records).
• Good Conduct and Integration:
  
  • Certificate of good conduct issued locally.
  • Sworn affidavit confirming respect for Paraguayan laws.
  • Evidence of integration into Paraguayan society (e.g., Spanish language skills, community ties).
• Other Requirements:
  
  • Payment of judicial and administrative fees.
  • Formal application submitted to the Paraguayan judiciary for naturalization.

Both residency and citizenship applications in Paraguay require careful preparation of official documents, proper legalization or apostille, and certified Spanish translations. While the residency stage focuses on identity, civil, and criminal records to establish legal stay, the citizenship process builds on this foundation by adding proof of long-term residence, integration, and commitment to Paraguayan society.

Step-by-Step Application Process for Paraguay Citizenship and Residency by Investment

Obtaining Paraguayan citizenship through residency takes at least  four years. The process is divided into several stages, each requiring specific actions and documentation. Below is a detailed breakdown:

Step 1. Preparing the Documentation (around 1 month)

The process begins with paperwork. Birth and marriage certificates, criminal records, proof of income or investment, and health insurance all need to be carefully translated into Spanish by a certified translator. Depending on where they are issued, these documents must also be notarized and apostilled. This preparatory stage generally takes about a month, and accuracy is crucial, any mistakes here can ripple through the rest of the application.

Step 2. Applying for a Temporary Residence Permit (2–4 months)

Once the documents are ready, they are filed at Migraciones, Paraguay’s Immigration Office. Within three to four months, most applicants receive an approval letter by email, allowing them to collect their residence card. The permit is valid for two years, during which time the applicant will receive a permanent residency card.

Step 3. Receiving a Cédula and Submitting Biometric Data (45 days once filed)

After residency is approved, applicants move on to securing a Cédula, Paraguay’s national ID card. They have up to six months to complete this step, which involves submitting biometric data such as fingerprints and photographs, along with paying government fees. In practice, the Cédula is usually issued within about forty-five days. More than a document, it becomes an everyday necessity, used for everything from opening a bank account to signing rental contracts.

Step 4. Transitioning to Permanent Residency (3–4 months processing)

Afterwards, foreigners can apply for permanent resident status immediately. This requires updated paperwork, including a new police clearance and proof of continued residence. The Immigration Office typically takes three to four months to process the application. Once approved, the resident no longer has to worry about renewals and enjoys long-term security in Paraguay.

Step 5. Applying for Citizenship (after 3 years of permanent residency, plus at least 1 uninterrupted year in Paraguay)

The final step is naturalization. After holding permanent residency for at least three years, foreigners may apply for citizenship, provided they have lived in Paraguay without interruption for the year before applying. Applicants must also demonstrate basic Spanish, at least at the A1 level. The case is brought before the courts, and once approved, the new citizen gains full rights, including eligibility for a Paraguayan passport.

Timeline for Paraguay Citizenship by Investment

Paraguay stands out for offering one of the fastest naturalization routes in South America, with the overall journey from residency to passport usually taking between four and five years (Article 148 of the Constitution of Paraguay) (De la Nacionalidad por Naturalización)). The process starts with obtaining permanent residency, which can often be completed within a few months once the required documents are submitted and background checks are cleared. Residency must then be maintained for at least three years before an application for citizenship becomes eligible. When the application is filed, it is reviewed by the civil court system rather than an administrative body, which adds formality but also influences the timeline. Courts typically take six to twelve months to consider an application, though in some cases this can extend to eighteen months or more if there are backlogs or additional documentation is requested. During this stage, applicants may be called for an interview or asked to demonstrate basic Spanish language ability and knowledge of Paraguayan history and culture. After the court grants a naturalization letter, the Ministry of Interior and National Police complete the registration and issue the national identity documents, followed by the passport. In practice, the period between filing for citizenship and receiving final approval can add one to two years, which is why although the legal minimum is three years of residency, most applicants realistically obtain citizenship within four to five years. The result is still one of the most efficient and flexible timelines available for investors seeking a second passport.

FAQ

Can I Buy Paraguay Citizenship?

Paraguay does not sell citizenship directly, meaning there is no option to simply pay a fee and instantly receive a passport. Instead, the country follows a residency-to-citizenship model, where foreign nationals first obtain permanent residency and later qualify for naturalization. This system is designed to ensure that applicants establish genuine ties to Paraguay, such as living in the country, contributing economically, or integrating socially, before being considered for citizenship.

Can I Become a Citizen of Paraguay by Investment?

Yes, Paraguay allows investors to start their path to citizenship through the SUACE program, which grants permanent residency in exchange for investment. By committing capital into the Paraguayan economy or creating jobs locally, foreign investors can secure residency rights. After maintaining this residency and meeting requirements such as time spent in the country and integration, they may apply for citizenship, making investment a practical gateway rather than a direct purchase.

How Much Do I Need to Invest to Get a Paraguayan Passport?

The minimum threshold for investors under the SUACE program is USD 70,000, which must be directed into a productive business or economic activity in Paraguay. This relatively low figure makes it one of the most affordable options globally for residency leading to citizenship. An alternative route exists for those who prefer not to make a large financial commitment: creating at least five local jobs, which also satisfies the program’s criteria and supports the country’s economy.

How Easy is It to Become a Citizen of Paraguay by Investment?

While the program is considered one of the most accessible in Latin America due to its low investment cost and straightforward application process, becoming a Paraguayan citizen is not automatic, but requires at least three years of holding residency. Applicants must still demonstrate residency and integration, including ties such as living in the country, potentially learning Spanish, and proving economic or social contributions. Compared to European programs, the path is less bureaucratic and less expensive, but patience and compliance are still required.

How Long Does it Take to Get Citizenship in Paraguay by Investment?

The timeline to citizenship is typically between 3 and 5 years after securing permanent residency, depending on the applicant’s personal situation and how well they meet residency obligations. 

What Are Other Popular Citizenships by Investment Options in Latin America?

Alongside Paraguay, several Latin American countries are emerging as attractive destinations for investors seeking alternative citizenship routes. Argentina recently became the first country in South America to formally launch a Citizenship by Investment program under Decree 524/2025. This framework allows foreign investors to apply directly for Argentine citizenship without prior residence, provided they make a “relevant” investment in strategic sectors such as technology, agribusiness, renewable energy, or tourism infrastructure. Another option, Uruguay offers investor residency through real estate purchases or economic projects starting at USD 575,000, with citizenship eligibility after 3 years for families or 5 years for singles. Colombia provides investment visas starting at about USD 120,000 for real estate or USD 35,000 for businesses, leading to citizenship after 5 years of permanent residency. Chile, while not offering direct citizenship by investment, has an Investor Visa that grants temporary residence to foreigners investing at least USD 500,000 in approved projects; after holding residency for  5 years and showing integration, applicants may naturalize as citizens. Together, these countries illustrate the diverse opportunities in Latin America for investors seeking cost-effective and flexible routes to residency and, eventually, citizenship.