๐Ÿ‡ต๐Ÿ‡พ Paraguay vs ๐Ÿ‡ต๐Ÿ‡น Portugal

Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs

Quick Comparison

Factor๐Ÿ‡ต๐Ÿ‡พ Paraguay๐Ÿ‡ต๐Ÿ‡น Portugal
Tax SystemTerritorialNHR (Non-Habitual Resident)
Income Tax (Foreign)0% (foreign income)20% flat (qualifying income)
Capital Gains Tax0% (foreign assets)0% (foreign gains)
Corporate Tax10%21%
Residency Requirement$5,000 bank depositD7 Visa (passive income proof)
Minimum StayNone required183 days/year
Cost of LivingVery Low ($800-1,500/mo)Moderate ($2,000-3,000/mo)

๐Ÿ‡ต๐Ÿ‡พ Paraguay

Highlights

  • โœ…Zero tax on foreign income
  • โœ…Easy permanent residency
  • โœ…No minimum stay requirement
  • โœ…Low cost of living
  • โœ…Path to citizenship in 3 years

Considerations

  • โš ๏ธLimited international banking
  • โš ๏ธSpanish language barrier
  • โš ๏ธDeveloping infrastructure

Best For

  • ๐Ÿ‘คDigital nomads
  • ๐Ÿ‘คRemote workers
  • ๐Ÿ‘คCrypto investors
  • ๐Ÿ‘คRetirees

๐Ÿ‡ต๐Ÿ‡น Portugal

Highlights

  • โœ…EU membership & passport path
  • โœ…NHR tax regime benefits
  • โœ…High quality of life
  • โœ…English widely spoken
  • โœ…Great weather

Considerations

  • โš ๏ธNHR being phased out for new applicants
  • โš ๏ธ183-day stay requirement
  • โš ๏ธHigher taxes after NHR ends

Best For

  • ๐Ÿ‘คEU access seekers
  • ๐Ÿ‘คRetirees
  • ๐Ÿ‘คQuality of life focus

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 Portugal if: You prioritize eu membership & passport path and nhr tax regime benefits. Ideal for eu access seekers, retirees, quality of life focus.

Not Sure Which is Right for You?

Take our free eligibility assessment to see which tax residency program fits your situation.