Leave your country
fiscally. For real.
It is not about paying less. It is about rebuilding your life somewhere else.
A tax residency change means relocating your center of life: where you sleep, where you operate, where you consume. Paraguay works because its territorial system lets you consolidate the exit — provided you actually live there. This is not optimization — it is a relocation.
€100 assessment. Custom plan.
Every case is different: country of origin, tax treaty, type of income, timing. The initial assessment (€100) gets you a personalized plan with a fixed quote before you start. If you are already a Devil Club client on the Manager Plan ($3,600/year), you get preferential terms — mention it when you schedule. The assessment is hosted by our Paraguay Official Partner; Devil Club is the entry point.
In this guide you will find:
What it is and what it is not
✅ This IS
- A real residency change — actually moving.
- A corporate reorganization with substance.
- Legal optimization within the regulatory framework.
❌ This is NOT
- A tax trick or a magic recipe.
- Becoming a paper non-resident without moving your life.
- Carrying on the same lifestyle while paying less.
Asunción: much more than tax
Paraguay is not only a tax destination. It is a country where quality of life improves dramatically — at a cost that has no comparison with Europe or the US.
Premium housing at half the price
Top-tier neighborhoods with pool, gym, 24/7 security — for half of what you would pay in Madrid or Miami. A magazine-grade apartment for the cost of a studio elsewhere.
Outstanding food scene
First-class beef, international restaurants, local cuisine that surprises. Dining out is the norm, not a luxury. Full dinner: 8-15 USD per person.
Nature and climate
Warm climate year-round, no European winters. Parks, rivers and a city that breathes. An environment that invites outdoor living.
Cheap utilities, fast internet
Fiber optic, electricity and water at trivial prices. Uber/Bolt: 2-3 USD for short rides, 5-8 USD for medium ones. Your operating cost of living collapses.
Changing tax residency is not paperwork
If anything on this list does not fit, this process is not for you.
- A residency document is not enough. Your home tax authority looks at where you live, operate and consume.
- You will have to spend real time abroad. Coherence is proven by facts: housing, banks, consumption.
- Your banking will change. New accounts, local activity, progressive closure of origin accounts.
- The first year demands extra coherence. It is the year that can attract the most scrutiny.
- If your life stays the same — same home, same banks, same routines — fiscally you have not left.
Before you reach out: confirm you are willing
- I will live most of the year outside my current country.
- I do not need to return frequently for family, partner or business reasons.
- My business can operate without my physical presence in my origin country.
- I am willing to switch banks, routines and day-to-day operations.
- I understand that if I do this halfway, the risk is on me.
Two tax tracks that combine
Most founders do not use one or the other — they use both. The question is not "which one do I pick", but in what proportion does your activity split. Both require the same thing: actually living in Paraguay.
You invoice from Paraguay
How it works: You obtain your RUC (Paraguay's tax ID), invoice your clients (or your own LLC) from Paraguay, and pay IRP at 10% — deducting your regular living expenses: rent, food, leisure, healthcare.
Who it is for: Freelancers, consultants, creators who sell their time directly. If your income is born where you are, this is your track.
Paraguay's deductions system can significantly reduce the effective rate depending on your real spend in-country.
Your foreign company invoices
How it works: Your LLC (with real, independent substance) provides the services, invoices clients, generates profits. You receive distributions as the owner of a foreign business asset. In a territorial system, that income may not be taxable.
Who it is for: Operators with a real structure: brand, processes, contracts, assets. The business runs without you working every day.
Classification depends on operational reality. Without real business substance, the traditional track applies.
The key: your real proportion
The difference is not where you live. It is what generates your money — your personal labor or an independent business asset. Most founders have both.
A typical example: you bill 20% of your income through RUC (your hands-on services, direct consulting) and 80% is generated by your LLC autonomously (SaaS, automations, digital products). The first slice pays IRP with deductions. The second pays the 0% territorial.
You do not get to choose that ratio — your real operations determine it. If your business is 100% personal consulting, 100% goes through IRP. If you have a self-serve SaaS, that share can go through territorial.
The Manager Plan builds the business substance that allows you to defend the territorial slice. Without it, everything is personal work → everything pays IRP.
The third lever: deferral
There is one more layer of optimization that most people are unaware of. Your LLC has no obligation to distribute all profits the same year it earns them.
One example: Your LLC bills $100k USD this year. You receive:
- $20k through RUC — You invoice your LLC for your manager/operator work. Pays IRP with deductions (possibly exempt if your expenses are high).
- $50k at 0% — Distribution as LLC owner (foreign source, territoriality). You declare but you do not pay.
- $30k held inside the LLC — You do not distribute. It does not exist for DNIT (Paraguay's tax authority) until you decide to draw it down. The money stays in your Mercury/Wise account.
Those $30k retained inside the LLC are not idle. They can be invested in ETFs, crypto, or reinvested in the business — and any capital gain generated there is foreign investment income, also at 0%.
Deferral only works if DNIT accepts that the LLC is an opaque, independent entity. With the Manager Plan you have the substance that defends it. Without it, all capital enters your personal estate the day it is earned → immediate IRP.
How much would you actually pay? Simulate your personal tax mix with real numbers ▾
How your activity is classified
In Paraguay, tax treatment depends on whether a real business organization exists, independent of your personal work.
You invoice personally
If the activity relies entirely on your personal work and no distinct business structure exists...
Result: Paraguay treats the income as Paraguayan-sourced. Pays IRP (10%) — with deductions.
Your company invoices
If the LLC has real substance: brand, website, processes, assets, its own contracts, automated systems...
Result: Profits distributed by the foreign company may qualify as foreign-source capital income — potentially not taxable in Paraguay.
The 2024 Spain-Paraguay Treaty
If you are coming from Spain, there is something important you need to understand. The new bilateral treaty (Spanish source) includes a clause (Art. 26.5) designed to prevent double non-taxation — that is, where income is not taxed in either country.
The anti-abuse clause
Paraguay has a territorial tax system: it only taxes income generated within the country. The treaty introduces a specific rule to prevent income from going untaxed in both States.
If income is allocated exclusively to Paraguay under the treaty but Paraguay does not tax it because of its territorial system, Spain can tax it under domestic law when there is an economic connection with Spain.
What does "economic connection with Spain" mean in practice?
For example:
- Services physically provided from within Spain.
- An office, employee or commercial agent based in Spain.
- A permanent establishment or economic infrastructure in Spain.
What is generally NOT considered an economic connection?
For example:
- Having Spanish clients while you work and live outside Spain.
- Selling services online from Paraguay to clients in various countries.
- Invoicing from a foreign company with no operational presence in Spain.
This does not mean you cannot invoice Spanish clients. It means that, depending on the structure and type of activity, some income may require different tax treatment.
Hybrid strategy
A common approach is hybrid: income tied to Spanish clients is declared inside the Paraguayan IRP, while global income with no economic connection to Spain can remain under the territorial regime, provided residency and business operations back it up.
The rest of global income (US, LatAm, crypto, non-Spanish clients) can stay under the territorial regime, as long as your residency and operations support it.
Why does this split work?
Paraguay only taxes what is generated inside the country. Most founders combine both tracks — the question is what percentage of your activity truly runs without your daily involvement.
You provide consulting
A client hires you. You work from Asunción. The value is generated by you, with your time, from Paraguay.
IRP · with living-cost deductions
Where the value is generated
Wherever you are → Paraguay
Your LLC sells a product
The LLC has a brand, website, automated systems, its own contracts. It runs without your daily involvement. You receive distributions.
Potential · foreign capital income
Where the value is generated
The company, abroad → Not taxable
If everything depends on your personal work in Paraguay, there is no real split. Everything pays IRP — it does not matter that you invoice from an LLC. The structure does not change operational reality.
With the Manager Plan, the LLC already has real business substance. The split is a consequence of how the business works, not a setup.
B2B vs B2C: different exposure
Your visibility to a tax authority depends on who you invoice. The nature of your income is determined by your structure, not your client.
B2C — Sales to Individuals
Reduced exposure.
- Individuals have no duty to report or withhold.
- No automatic data cross-check with tax authorities.
- Invoice from your LLC, collect via WIRE or Stripe.
B2B — Sales to Spanish Companies
Manageable exposure, but requires strategy.
- Your client is required to report payments (Spanish Form 347).
- The treaty may allow Spain to tax you.
- Your client may be affected if you do not manage your structure properly.
How much do you actually pay?
If you decide to declare part of your income in Paraguay (traditional track or hybrid strategy for Spain), Paraguay's deductions system lets you reduce the taxable base with real day-to-day living expenses.
The deductions system
IRP allows you to deduct real expenses required for the taxpayer's day-to-day life in Paraguay.
Practical result: although the nominal rate is 10%, deductions can significantly reduce the effective rate depending on your actual in-country spend.
⚠️ Illustrative example. Does not represent typical or guaranteed scenarios.
| Item | Annual amount (example) | Deductible? |
|---|---|---|
| Income declared in Paraguay | + $40,000 | — |
| Rent | - $24,000 | ✓ Yes |
| Food (supermarket / restaurants) | - $3,600 | ✓ Yes |
| Leisure & health (in Paraguay) | - $12,000 | ✓ Yes |
| Final taxable base | $400 | — |
| Tax due (10%) | $40 | Subject to applicable deductions |
* Actual result depends on your specific situation, spending level and current legislation.
Want to know which track applies to your case? Online assessment with our Paraguay Official Partner.
Request assessment · €100Tell them you come from Devil Club — it ensures preferential treatment from our Partner.
Worldwide income vs. territorial income
Most European countries tax your worldwide income: wherever you earn, you pay where you reside. Some countries — like Paraguay — only tax income generated within their borders. That is a territorial system. The difference is not a trick — it is a different tax architecture that only applies if you actually live there.
| Item | Worldwide income system | Territorial system * |
|---|---|---|
| Foreign-source income | 19% – 50% (depending on country) | Potentially not taxed if residency and source requirements are met |
| Mandatory social security | Up to €500/month | Optional |
| VAT on exported services | Up to 21% | 0% (export) |
| Tax scrutiny on self-employed | High | Low |
* The Paraguayan territorial regime only applies to real tax residents — with demonstrable presence, substance and coherence.
Why Paraguay is viable
Paraguay is not a tax haven. It is a country with a sovereign territorial system recognized by the OECD. It allows you to consolidate a real tax exit — but it requires that your life there is sustainable in practice.
- Accessible permanent residency.
- OECD-recognized territorial system — not a gray area.
- Sustainable cost of living.
- No Exit Tax.
- Spanish as the official language.
- Be willing to actually live there.
- Move your banking and economic activity.
- Dismantle your previous tax residency.
- Sustain your presence for at least 2-3 years.
How the system works in practice
| Topic | Theoretical framework | In practice |
|---|---|---|
| The US LLC | Can be considered transparent without real substance. | With a real business structure, the tax classification can be different. |
| The Treaty | Art. 26.5 lets Spain tax income not taxed in Paraguay. | Being subject to Paraguayan IRP strengthens defense against this clause. |
| Information exchange | Automatic exchange mechanisms exist. | Non-harmonized jurisdictions reduce automatic exchange — without removing obligations. |
| Residency | A certificate without substance is worthless. | With demonstrable real life (rent, consumption, bank), the certificate is solid. |
The US LLC
The Treaty
Information exchange
Residency
What our Paraguay Official Partner handles in Asunción
Devil Club has vetted and selected an Official Partner that has been helping Spanish-speaking founders settle in Paraguay for years. Their team speaks Spanish, English and Catalan. Every case is different. Devil Club is the entry point and quality check; the Partner delivers everything on the ground.
Residency + cédula + RUC
The Partner handles the full immigration filing — cédula (Paraguay national ID card) and RUC included. You can kick everything off in a single trip of about 48 in-person hours. You sign a power of attorney and the Partner finishes the rest. Express path: minimum 60 days. Standard path: ~5 months.
Bank Account Opening
The Partner coordinates with local banks to open accounts in guaraní and dollars. They advise on which bank fits your profile and operating volume.
Housing: Rent or Buy
The Partner runs a personalized search: from studios to family homes. Short-term rentals, long-term leases or outright purchase.
Real Estate Investment
Opportunity sourcing, analysis of areas with potential and full accompaniment — from the visit to the deed signing — all delivered by our Partner on the ground.
Door-to-Door Accompaniment
The Partner's local team picks you up at the airport. They take you to each appointment. They accompany you to property viewings. They handle unforeseen issues. The Partner takes care of the paperwork. The hard part — changing your life — is on you.
There is no fixed price because no two cases are alike. Tell us your situation and the Partner returns a concrete quote.
Step by step
Assessment
Online session with our Paraguay Official Partner. They review your case, answer every question and return a fixed quote.
Preparation
You prepare apostilled documents. The Partner sends you guides with video walkthroughs and coordinates everything before you travel.
Trip
The Partner picks you up. You start residency, cédula, RUC, bank. You sign a power of attorney so they can finish what is pending.
Closing
The Partner completes the paperwork. They let you know when everything is operational.
Is a single trip enough?
For the administrative paperwork, yes — everything can be set in motion in ~48 in-person hours.
But effective tax residency is something else. It is determined by your real life: where you spend your time, where you operate, where you consume. The first year is critical if you come from Spain or other countries with aggressive tax authorities.
The trip kicks off the legal process. Tax residency you build with your day-to-day decisions.
- Birth certificate — your civil registry (often available online with digital signature).
- Criminal background check — your justice ministry (online). No older than 3 months.
- Valid passport — minimum 6 months of validity.
- Selfie — recent photo, white background (no ID photos required).
Online apostille typically runs ~€12/doc (the criminal record one is roughly €3-4 in Spain). The Partner sends step-by-step guides once you confirm.
Ready to take the first step?
Request assessmentTell our Partner you come from Devil Club to receive preferential treatment.
LLC + tax exit: the two pieces
If you already operate an LLC through Devil Club, a tax exit to Paraguay is the natural complement. An LLC with real substance + effective territorial tax residency — both pieces together, when reality backs them up, is where the system works.
- LLC formed and maintained in the US.
- Annual tax and bookkeeping compliance.
- Community, resources and continuous education.
- Permanent technical and strategic support.
- Tax residency + cédula + RUC.
- Bank accounts in USD and PYG.
- Real housing (rent or buy).
- Door-to-door accompaniment, delivered by the Partner on the ground.
Do you need a manager in the US?
A manager does not give you the 0%. But it is what makes the 0% defendable.
The Manager Plan only makes sense when the business does not depend on you — SaaS, team, real delegation. In that context, it is the piece that reinforces the defense of territorial income in Paraguay. Without delegation, defending the 0% is nearly impossible. With delegation but no governance, the position is weak. With delegation + real governance, your position is strong.
Self-managed. You are the administrator. Designed for billing the LLC with your Paraguayan RUC.
How it works: You obtain your RUC in Paraguay and invoice professional services to your own LLC. The LLC pays your invoices as a deductible operating expense. You pay IRP at 10% nominal — with deductions for living expenses (rent, food, healthcare, leisure).
Obligations: Annual IRP filing, keeping a log of issued invoices and expenses, keeping your RUC active. You do not access the territorial track — but your effective tax burden is significantly lower than in Europe.
Real delegation + documented governance. What makes the territorial track defendable.
How it works: Devil Club acts as the executive Manager of your LLC from the US. You are the Operational Scout — you propose opportunities and execute the productive work. But no decision is binding without Manager ratification through the Governance Ledger.
What it includes: Operating Agreement with separated roles, Governance Ledger with SHA-256 verification, professional bookkeeping synced with your bank, signing contracts on behalf of the LLC, intermediation with the IRS, and a Corporate Evidence Dossier ready for your advisor.
Result: Your LLC has documented and verifiable operational activity. This alone does not determine your tax treatment — but it is the solid documentary basis your advisor needs to defend any position before the Paraguayan administration.
When to choose each plan?
Do you sell B2B to Spain? — MANAGER PLAN STRONGLY RECOMMENDED. Without real delegation, defending the territorial track against the treaty is nearly impossible. The Manager Plan brings the governance that holds it up.
Do you sell B2C and want to defend the territorial track? — MANAGER PLAN RECOMMENDED. With delegation but no governance, the position is weak. The Manager Plan brings both.
Low revenue, still testing? — STANDARD PLAN. You can upgrade once volume justifies it.
What exactly does the manager do?
It is not a figurehead. It is the corporate infrastructure that makes the 0% territorial defendable — real delegation + documented governance.
Coordinates with the registered agent, handles legal correspondence and operational requirements from the US.
Your face before US banks and vendors. Real presence where the LLC operates.
Formal document that defines who makes operational decisions and where they are made.
Bylaws that reflect that operational power sits with the external manager.
Every panel login logs your geolocated IP. The system tallies days per country and alerts when you approach the 183-day threshold — passive evidence that generates itself.
Analyzes bookkeeping, compliance and presence every week. Generates a Health Score and proactive alerts. If something drifts, it catches it before it becomes a problem.
Real governance, not cosmetic
The difference between "having a manager" and having real delegation + governance with full traceability.
Chronological record of decisions, contracts and resolutions. Full traceability for any audit.
The manager can block operations that put compliance at risk. Real power, not decorative.
Formal validation of commercial agreements by the executive authority in the US.
For Paraguay this is the key: real delegation + documented governance = strong position to defend the territorial track. Without both, the administration can reclassify your income.
Sign up and contract the Manager Plan directly from your private dashboard.
When this does NOT work
If your situation looks like any of these profiles, moving to Paraguay will not change the nature of your income — and you will pay tax all the same.
- Freelancer selling their time directly. The income is born where you are — if you are in Paraguay, it is taxed there at 10%.
- Consultant with no team or processes. Without an independent structure, there is no asset generating capital income.
- Personal content creator. If the content is you, the income is personal work.
- Agency that depends on the founder. If the company cannot operate without you, real substance does not exist.
- Business that stops if you stop. The definitive test — without you, there is no company, no asset.
But note: these profiles CAN still relocate to Paraguay and use the traditional track (RUC + 10% IRP with deductions). You will not access the territorial regime, but your tax burden will be significantly lower than in Europe. And if you build real business substance over time, the territorial track opens up.
Necessary conditions
Everything above only applies if you meet these conditions. Without them, the process makes no sense.
- Live abroad most of the year. Paraguay has to be your real base.
- Center of life outside your current country. Home, consumption, banks — everything moves.
- Independent business operations (for the territorial track). Your LLC with real substance.
- Willingness to change habits and banks. New accounts, progressive closure in your origin country.
- Real horizon ≤ 6 months. If you are not moving soon, this is not the time.
“I was billing $120K to US clients while paying 40% in Colombia. With the Manager Plan + residency in Paraguay I am at 3% effective. The system handles everything — I just approve decisions on Telegram. The move itself was hard the first few months; the tax side, from day one, has been impeccable.”
What you need to know
For the administrative paperwork, yes — ~48 in-person hours and a notarized power of attorney. But tax residency you build with your life: real presence, housing, consumption, coherence. The trip kicks off the paperwork. The real relocation is on you.
There is no magic number. Paraguayan rules indicate that stepping foot in the country once a year keeps residency alive. But your previous country looks at the real break of ties: where you live, operate, consume. During the first year coherence matters far more than counting days.
It depends on what you need. The initial assessment is online · €100 directly with our Paraguay Official Partner. From there, a fixed quote without surprises.
Express: minimum 60 days. Standard: ~5 months. The ~48h trip kicks everything off. The Partner completes what is pending with your power of attorney.
The Spain-Paraguay treaty kicks in. The typical strategy: declare that income inside the IRP, deduct living expenses, obtain the Tax Residency Certificate. The rest of global income can stay under the territorial regime.
With the territorial track and real substance, foreign-source income may not be taxable. With the traditional track (IRP), you pay 10% nominal — but deductions (rent, food, leisure) can significantly reduce the effective rate. Both require real residency.
The LLC is on us at Devil Club — formation, maintenance, compliance and support. Our Paraguay Official Partner handles the relocation: residency, banks, housing. Two complementary pieces of a single structure.
No. Spanish is the official language alongside Guarani. In Asunción you will move around like in any capital, with the bonus that people are extremely friendly.
Yes. Preferential terms with our Paraguay Official Partner. And the LLC + territorial residency combination is where the system works best — when reality backs it up.
Is your tax exit viable?
Find out if your case is viable before taking any step
Write to us with your situation — revenue, current country, timing, ties — and we connect you with our Paraguay Official Partner in Asunción for a direct viability assessment.
It only makes sense if you plan to move in the next 6 months. If your horizon is "someday", bookmark this page and come back when you have a date.
Request viability assessmentDevil Club clients receive preferential terms. Tell our Partner you come from Devil Club.
If you only want general information, this is not the right channel.
This content is for informational purposes only and does not constitute legal or tax advice. Tax residency does not depend on a single document but on the taxpayer's actual life — including physical presence, economic ties, family life and banking operations. Income classification depends on the existence of a real business organization independent of personal work. Final classification is always determined by the tax administration based on the specific facts. Each case requires individual analysis by qualified professionals. The residency service in Paraguay is delivered by an independent specialized Official Partner. Devil Club acts as facilitator, quality check and point of contact, not as the direct provider. The contract for relocation services is between you and the Partner. Information about the Spain-Paraguay treaty, IRP, deductions and corporate structure is indicative and may change with current legislation. Do not make decisions based solely on this content.