🇵🇾 Paraguay vs 🇺🇾 Uruguay
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇾 Paraguay | 🇺🇾 Uruguay |
|---|---|---|
| Tax System | Territorial | Territorial (with tax holiday) |
| Income Tax (Foreign) | 0% (foreign income) | 0% foreign (10 years) |
| Capital Gains Tax | 0% (foreign assets) | 0% foreign (10 years) |
| Corporate Tax | 10% | 25% |
| Residency Requirement | $5,000 bank deposit | $520k property OR income proof |
| Minimum Stay | None required | 183 days to activate |
| 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
🇺🇾 Uruguay
Highlights
- ✅10-year tax holiday on foreign income
- ✅Stable banking system
- ✅High quality of life
- ✅Safe country
- ✅Good infrastructure
Considerations
- ⚠️Higher residency requirements
- ⚠️Cold winters
- ⚠️Small market
Best For
- 👤Wealthy individuals
- 👤Argentines
- 👤Quality of life seekers
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 Uruguay if: You prioritize 10-year tax holiday on foreign income and stable banking system. Ideal for wealthy individuals, argentines, quality of life seekers.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.