🇵🇾 Paraguay vs 🇦🇩 Andorra
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇾 Paraguay | 🇦🇩 Andorra |
|---|---|---|
| Tax System | Territorial | Low Tax |
| Income Tax (Foreign) | 0% (foreign income) | 0-10% |
| Capital Gains Tax | 0% (foreign assets) | 0-10% |
| Corporate Tax | 10% | 10% |
| Residency Requirement | $5,000 bank deposit | €50k deposit + €400k investment |
| Minimum Stay | None required | 90 days |
| Cost of Living | Very Low ($800-1,500/mo) | Moderate ($2,000-3,500/mo) |
🇵🇾 Paraguay
Highlights
- ✅Zero tax on foreign income
- ✅Easy permanent residency
- ✅No minimum stay requirement
- ✅Low cost of living
- ✅Path to citizenship in 3 years
Considerations
- ⚠️Limited international banking
- ⚠️Spanish language barrier
- ⚠️Developing infrastructure
Best For
- 👤Digital nomads
- 👤Remote workers
- 👤Crypto investors
- 👤Retirees
🇦🇩 Andorra
Highlights
- ✅Very low taxes
- ✅Safe country
- ✅Mountain lifestyle
- ✅Near Spain/France
- ✅Growing crypto scene
Considerations
- ⚠️Not EU member
- ⚠️Small country
- ⚠️Limited services
Best For
- 👤Skiers
- 👤Low-tax EU access
- 👤Crypto
Which Should You Choose?
Choose Paraguay if: You prioritize zero tax on foreign income and easy permanent residency. Ideal for digital nomads, remote workers, crypto investors, retirees.
Choose Andorra if: You prioritize very low taxes and safe country. Ideal for skiers, low-tax eu access, crypto.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.