🇵🇾 Paraguay vs 🇨🇷 Costa Rica
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇾 Paraguay | 🇨🇷 Costa Rica |
|---|---|---|
| Tax System | Territorial | Territorial |
| Income Tax (Foreign) | 0% (foreign income) | 0% (foreign income) |
| Capital Gains Tax | 0% (foreign assets) | 0% (foreign) |
| Corporate Tax | 10% | 30% |
| Residency Requirement | $5,000 bank deposit | Rentista ($2,500/mo income) |
| Minimum Stay | None required | None required |
| Cost of Living | Very Low ($800-1,500/mo) | Moderate ($1,800-3,000/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
🇨🇷 Costa Rica
Highlights
- ✅Stable democracy
- ✅No army, peaceful
- ✅Beautiful nature
- ✅Good healthcare
- ✅Large expat community
Considerations
- ⚠️Higher cost than neighbors
- ⚠️Bureaucratic processes
- ⚠️Some areas touristy
Best For
- 👤Retirees
- 👤Nature lovers
- 👤Families
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 Costa Rica if: You prioritize stable democracy and no army, peaceful. Ideal for retirees, nature lovers, families.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.