Good morning, Nomads. Today I bring you a different blog, something a bit more personal. I’ll tell you why I’ve decided to live in Paraguay.
Many of you don’t know me. In the last ten years, I’ve lived in eight countries. Some for six months, others for two years. I’ve been to multiple places. In the last four years, I’ve chosen my residences not only seeking a better quality of life but also considering other factors like freedom and taxation. That’s how Nomad Tax was born.
For the past two and a half years, I’ve lived in Cyprus, a Mediterranean gem that enchanted me. I’ll probably return there in the future. So, if I love Cyprus so much, with its low taxes and great quality of life… what the hell am I doing living in Paraguay? Well, stay tuned, and I’ll give you 4 reasons why I decided to leave Europe and settle in this beautiful country…
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Reason #1 to Live in Paraguay: Freedom
Although European countries like Cyprus still breathe more freedom compared to others on the continent, Cyprus leaves me with a bittersweet feeling for the medium and long term.
Eventually, Cyprus will have to align with the European globalist agenda, just as Portugal did, and its Non-Dom system may be abolished. And if the European Union experiment does not collapse for some reason, Cyprus will also have to adapt to the new technocratic norms of Europe, where greater control over the citizen is the goal.
We saw this, for example, in 2020, when all of Europe was shut down; in Cyprus, you were also confined and had to follow the rules without complaint. So, what happens in Paraguay? Here, the situation was totally different. In 2020, life continued as normal. There were no quarantines, forced lockdowns, or mandatory jabs.
Moreover, putting aside the “conspiracy theories,” Paraguay is an ideal country for those who seek quick solutions, appreciate informality, tranquility, and the ease of getting things done simply.
If, for some reason, you get a fine, you can always offer 30 euros to the officer on duty, and he’ll be happy to waive it. If you need to renovate your house, you won’t need to request permits from the municipality; whether you want to build an upper floor on your villa. And if you want to maintain your residence visa in the country, you only have to visit Paraguay once a year. You don’t need to live in Paraguay permanently. Simple.
Reason #2 to Live in Paraguay: Taxes
Obviously, I’m not a charitable brother, nor do I run my businesses for the love of art; I’m a mercenary: I work for myself and my loved ones, live for myself and my loved ones, and above all, I pay taxes where I’m treated best. And that’s why Paraguay seems like an ideal destination to me.
Paraguay has a territorial taxation system. What does this mean? We have an extensive video on the topic on our channel, but to summarize, all income from abroad is not taxed in Paraguay. My company isn’t Paraguayan, and neither are my clients, so this country allows me not to pay taxes on those earnings, unlike other countries like Spain.
In Paraguay, all my income is mine to keep. But if, for some reason, I wanted to do business within Paraguay itself, don’t think they’d rob me of 50% of my income… Not at all! In Paraguay, I’d only have to pay a 10% corporate income tax and a 5% tax on dividends. Not bad at all.
Moreover, in Paraguay, you can deduct multiple expenses, unlike in other European countries. And if you want to engage in import and export businesses in the region, you’ll also enjoy great tax benefits… which brings me to point number 3.
Reason #3 to Live in Paraguay: Investment Opportunities
If you’re looking to invest in Europe, it can be terrifying. Buying an apartment with the intention of getting a medium-term return seems like an absurd gamble; it’s like playing hot potato, you never know when or to whom it will explode.
In most interesting places in Europe, you’ll need a lot of capital to make an investment. What happens in Paraguay? Well, whether you’re European or American, you’re in luck. Paraguay has just received the “Investment Grade”. But… you might be wondering, what is Investment Grade? Let me summarize it in 1 minute.
This term refers to a credit rating given to bonds and other debt instruments by rating agencies like Standard & Poor’s, Moody’s, and Fitch. Bonds that receive an “investment grade” rating are considered to have low risk of default, making them ideal for institutions and individuals seeking security and stability in their investments.
Now, what happens if a country like Paraguay doesn’t have an “investment grade” rating? Well, this means that its sovereign debt is seen as higher risk by the rating agencies.
In other words, bonds issued by this country are considered riskier. Countries without an investment grade rating often face higher financing costs. To attract investors, they must offer higher interest rates on their bonds. This can increase the debt burden and make it difficult to finance government projects and programs.
Additionally, there are investment restrictions. Many investment funds, pension funds, and other institutional investors have policies that prohibit them from investing in non-investment grade bonds. This limits the investor base and reduces demand for the country’s debt.
So, you might ask, what’s good about Paraguay just getting the “investment grade”? Simple. The country is very cheap. Today, you can invest to get your dream house, a small plot for your garden, an apartment for real estate investment, or even start your business at very competitive prices. Paraguay is affordable and has great growth potential.
Now that Paraguay has obtained the investment grade, large foreign investors will want to enter the market. If you bought your house, land, or apartment before that, your investment will appreciate. The country has only one way to go: up.
Moreover, Paraguay offers a tranquil quality of life, far from the stress and excessive regulations of other countries. The simplicity in procedures and the informality in business make entrepreneurship and daily life easier. Don’t worry about endless bureaucratic procedures; here, everything is simpler and more accessible.
Reason #4 to Live in Paraguay: Quality of Life
Paraguay offers a calm and relaxed quality of life, perfect for those looking to escape the frenetic pace of big cities. Here, life is simple and focused on community and nature. Small towns and rural areas provide a peaceful and welcoming environment, and even Asunción is a quiet city. If you’re European, work from home, and don’t need to navigate city traffic, you won’t experience stress here.
Living in Paraguay is significantly cheaper than in many countries in Europe and North America. If you’re coming from Europe, you should know that a family of four can live comfortably on about $2,500 a month, including rent, health insurance, transportation, etc., while a single person needs around $1,000 a month.
The prices of food, transportation, and public services are quite affordable, allowing you to live well without needing a large income.
Security in Paraguay is another topic I get asked about a lot. Although crime levels vary, the security index is relatively low in urban areas like Asunción.
But just like in Barcelona, Paris, or London, all you need to do is be a bit cautious, especially in large cities. However, rural communities and smaller towns tend to be safer and offer a more tranquil and secure environment.
Regarding Infrastructure and Services: Paraguay is a developing country, which means that infrastructure may be less reliable than in more developed countries. For example, while residential areas in Asunción look nice, it’s also true that other areas, like the historic center, are quite neglected… You’ll find broken sidewalks and some roads in poor condition…
Despite this, the government is investing in improving these infrastructures, and the situation is gradually improving, especially as it reaches the “Investment Grade”.
One of Paraguay’s greatest attractions is its abundant nature and clean air. Outside the cities, you’ll find miles of green fields, crystal-clear rivers, and rich wildlife. This makes it an ideal place for nature lovers and those who enjoy outdoor activities like hiking and exploring…
Besides the natural wealth, what I like most about Paraguay is the people. Paraguayans are known for their welcoming and relaxed nature. The local culture is rich and diverse, with numerous festivals and celebrations throughout the year. Expats usually find it easy to integrate into local communities and are welcomed with warmth and hospitality…
So in conclusion
Paraguay offers you an affordable quality of life and a peaceful environment with a low cost of living. The natural beauty and welcoming Paraguayan community make it well worth considering as a destination to live and invest in.
Tell me what you think about Paraguay, Nomad! Would you invest here? Would you live here? See you in the next blog! 😀
