Working Remotely

Remote Work in Paraguay

Paraguay has become a top destination for digital nomads and remote workers, primarily due to its territorial tax system that exempts foreign-sourced income from taxation.

Why Digital Nomads Choose Paraguay

Tax Benefits:

• 0% tax on foreign income (legally)
• Only Paraguayan-source income is taxed
• Remote work for non-Paraguayan companies = tax-free
• No need for complex structures or offshore accounts

Cost Efficiency:

• Monthly costs: $1,000-1,500 for comfortable living
• Earnings of $3,000+/month means significant savings
• Same lifestyle costs 3-4x more in US/Europe

Internet Infrastructure

Speeds in Asuncion:

• Average: 50 Mbps
• Fiber available in good neighborhoods: 100+ Mbps
• Cost: $30-50/month for reliable connection
• Main providers: Tigo, Personal, Claro

Reliability:

• Generally stable in Asuncion
• Power outages occasional during storms
• Backup: mobile data plans ($15-25/month unlimited)

Coworking Spaces

Asuncion has a growing coworking scene:

• Hive Coworking - modern, good community
• La Cofi - cafe-style, casual atmosphere
• Loffice - professional environment

Costs: $100-200/month for dedicated desk, day passes available

Coffee Shops:

Many cafes in Villa Morra and Las Carmelitas are laptop-friendly with reliable WiFi.

Time Zone Advantage

Paraguay is UTC-4 (UTC-3 in summer):

• 1-2 hours ahead of US Eastern
• Overlaps well with US business hours
• Morning = US morning/previous night
• Good for Americas-based clients

Legal Considerations

Important: Paraguay doesn't have a digital nomad visa. Your options:

1. Tourist status (90 days): Technically can work remotely as income is foreign-sourced, but not ideal long-term

1. Temporary residency (recommended):

• Legal status to live and work
• Path to permanent residency
• Access to banking, Cedula, etc.
• Still 0% tax on foreign income

Tax Residency:

• Spending 120+ days/year makes you tax resident
• But territorial system means still no tax on foreign income
• May need to file returns showing no local income

Best Setup for Remote Workers

1. Get temporary residency for legal status
2. Open local bank account for expenses
3. Keep foreign income in foreign accounts
4. Use Wise or similar for transfers to Paraguay
5. Maintain records of foreign client relationships

Challenges

• Limited English: Prepare to use Spanish or Google Translate
• Bureaucracy: Residency process requires patience
• Internet outside cities: Much slower and less reliable
• Heat: Summer months (Nov-Mar) can be oppressive without AC

Remote Work Community

Growing expat community, especially:

• Crypto/Web3 enthusiasts
• Location-independent entrepreneurs
• Retirees with passive income

Facebook groups and expat meetups help with connections.