🇵🇾 Paraguay vs 🇳🇮 Nicaragua
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇾 Paraguay | 🇳🇮 Nicaragua |
|---|---|---|
| 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 | $750/mo income proof |
| Minimum Stay | None required | None required |
| Cost of Living | Very Low ($800-1,500/mo) | Very Low ($600-1,200/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
🇳🇮 Nicaragua
Highlights
- ✅Lowest cost in Americas
- ✅Beautiful beaches
- ✅Easy residency
- ✅Territorial taxation
- ✅Growing expat community
Considerations
- ⚠️Political concerns
- ⚠️Basic infrastructure
- ⚠️Limited banking
Best For
- 👤Budget nomads
- 👤Beach lovers
- 👤Adventurous types
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 Nicaragua if: You prioritize lowest cost in americas and beautiful beaches. Ideal for budget nomads, beach lovers, adventurous types.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.