🇵🇾 Paraguay vs 🇨🇾 Cyprus
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇾 Paraguay | 🇨🇾 Cyprus |
|---|---|---|
| Tax System | Territorial | Non-Dom Regime |
| Income Tax (Foreign) | 0% (foreign income) | 0% on dividends |
| Capital Gains Tax | 0% (foreign assets) | 0% (most cases) |
| Corporate Tax | 10% | 12.5% |
| Residency Requirement | $5,000 bank deposit | Category F permit (€50k deposit) |
| Minimum Stay | None required | 60 days (special regime) |
| 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
🇨🇾 Cyprus
Highlights
- ✅EU membership
- ✅English widely spoken
- ✅60-day rule for tax residency
- ✅Non-dom dividend exemption
- ✅Good weather
Considerations
- ⚠️Divided island
- ⚠️Hot summers
- ⚠️Limited winter activities
Best For
- 👤Non-dom status seekers
- 👤Holding companies
- 👤Yacht owners
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 Cyprus if: You prioritize eu membership and english widely spoken. Ideal for non-dom status seekers, holding companies, yacht owners.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.