Tax Residency & Special Tax Regimes

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Paraguay uses a territorial tax system: it taxes only local income at 10% progressive rate, while foreign-earned income remains exempt . Becoming a tax resident requires 183 days present per year, though many maintain non-resident status to preserve tax neutrality.

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No wealth, inheritance, or capital gains taxed on foreign income. This appeals strongly to HNWIs seeking low-tax frameworks tied to global mobility.

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