🇵🇾 Paraguay vs 🇪🇨 Ecuador
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇾 Paraguay | 🇪🇨 Ecuador |
|---|---|---|
| Tax System | Territorial | Territorial (improving) |
| Income Tax (Foreign) | 0% (foreign income) | 0% (foreign pension) |
| Capital Gains Tax | 0% (foreign assets) | 0% (foreign) |
| Corporate Tax | 10% | 25% |
| Residency Requirement | $5,000 bank deposit | $1,400/mo pension |
| Minimum Stay | None required | None required |
| Cost of Living | Very Low ($800-1,500/mo) | Very Low ($1,000-1,800/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
🇪🇨 Ecuador
Highlights
- ✅Dollar-based economy
- ✅Very low cost of living
- ✅Great climate options
- ✅Excellent retiree benefits
- ✅Beautiful landscapes
Considerations
- ⚠️Political instability
- ⚠️Limited banking
- ⚠️Infrastructure varies
Best For
- 👤Retirees
- 👤Budget-conscious
- 👤Nature lovers
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 Ecuador if: You prioritize dollar-based economy and very low cost of living. Ideal for retirees, budget-conscious, nature lovers.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.