🇵🇾 Paraguay vs 🇵🇷 Puerto Rico
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇾 Paraguay | 🇵🇷 Puerto Rico |
|---|---|---|
| Tax System | Territorial | Act 60 Incentives |
| Income Tax (Foreign) | 0% (foreign income) | 0% (export services) |
| Capital Gains Tax | 0% (foreign assets) | 0% (post-move gains) |
| Corporate Tax | 10% | 4% (export services) |
| Residency Requirement | $5,000 bank deposit | US citizens only |
| Minimum Stay | None required | 183 days |
| Cost of Living | Very Low ($800-1,500/mo) | Moderate ($2,500-4,000/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
🇵🇷 Puerto Rico
Highlights
- ✅US territory - no FEIE needed
- ✅Act 60 tax incentives
- ✅Zero capital gains post-move
- ✅4% corporate tax
- ✅Beach lifestyle
Considerations
- ⚠️Only for US citizens
- ⚠️Must meet presence tests
- ⚠️Hurricane risk
Best For
- 👤US citizens
- 👤Crypto investors
- 👤Export service businesses
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 Puerto Rico if: You prioritize us territory - no feie needed and act 60 tax incentives. Ideal for us citizens, crypto investors, export service businesses.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.