Are you interested in obtaining residence in Paraguay? Paraguay is one of the most liberal countries in the world when it comes to obtaining a second passport or citizenship.

 

You too could join the band of globetrotters, business people and retirees seeking the numerous benefits of a second nationality, also known as dual citizenship. Carrying another passport opens up a new world of opportunities, particularly if your existing passport limits your right to travel or do business because of government restrictions, visa requirements and so on, or - worse still - makes you a target of discrimination or even hatred abroad. Your new passport can be a route to business in other countries, a way of improving banking secrecy... or simply an 'insurance policy' that helps you sleep better at night, knowing that the documentation is in place if you should ever need to make a move.

So-called economic citizenship programs are few and far between these days. There are only two countries in the world that still offer the chance to 'buy' a passport legally. They are St Kitts and Nevis , and the Commonwealth of Dominica . You will find articles about these economic citizenship programs on the linked pages here at Offshore World.

 

But for those who don't want to outlay so much capital but have time on their side, there is good news: a older and much cheaper way to obtain a similar result for just a fraction of the cost. That is through conventional naturalization - Naturalization is defined aoosely as acquiring citizenship of a foreign country by developing lasting ties with that country, usually through residence or family connections. Many would argue that obtaining a second passport by naturalization is really much better than buying your second citizenship from one of those two sinynations that are known worldwide for 'selling' passports.

The logical solution is to look for countries which have the most attractive conditions for residency, and liberal naturalization/citizenship requirements. A great one to start with is the Republic of Paraguay. (another attractive alternative to consider is also the Dominican Republic ) Paraguay and Dominican Republic both offer attractive advantages for those in search of naturalization, or even those seeking a more friendly tax environment:

• Both of these countries allow foreigners to qualify for residence relatively easily. One or two visits to the country, common documents like your existing passport and birth certificates, a simple medical test and a fee usually suffice. Note that here, I'm talking about residence on paper. Once you have qualified as a resident in one of these two countries, it gives you the right to live there but not the obligation to do so. This is a most important point. After all, the whole name of the game is increasing freedom, not being tied down to spending a certain number of days in a particular place. A Paraguay residence permit, once issued, is valid for life, automatically, by default. In this respect it's better than Dominican Republic, that requires residence permits to be renewed annually. 
• Many countries also impose taxes on theworldwide income of residents. This means that from the day you obtain your residentce permit, you'll have a new tax system to deal with. Not so with Paraguay. Paraguay does not tax any income earned outside the country. In fact, Paraguay does not have any income taxes at all, period. For this reason, one website on business in Paraguay has described the country as "the world's last forgotten tax haven." If your original citizenship does not tax non-residents (and remember that the USA is the only country in the world that taxes its non-resident citizens) then the moment you can flash your residence card  and cedula from Paraguay, you might well benefit from substantial tax advantages! Even Americans, when non-resident, qualify for a complete exemption from income taxes on their first $80,000 of earned income each year - not to be sniffed at!
• Paraguay permits you to submit your application for naturalization after as few as three years. Although in practical terms Paraguay's not-insignificant red tape might drag this out to maybe four or even five years, it's still a good deal. If you get your foot in the door now, those years will rush by and before you know it, you could be a citizen of the 'Republica del Paraguay.'

Of course, there is some work involved. You are expected to speak basicSpanish, and learn something about the history, culture and civics of the new homeland. An excellent book to learn about Paraguay's culture and history is called Atlas Paraguay, and is available by special order from the Offshore World / Expats Ebooks office.

How about other countries in South America you may wish to consider for residence and citizenship purposes? Brazil, Uruguay and Argentina are all attractive options, as are Peru and Ecuador. All these are slightly more complicated in terms of the actual process of acquiring a second citizenship, but are by no means impossible.

I regularly travel throughout this region. One thing you should be aware of are the number of unwritten rules. You will need to be prepared for a certain level of uncertainty. What you read on the internet may well not always be true! (In fact, that applies in any case) You will find you get different answers depending who you ask, and indeed depending how you ask. You will need a reputable and reliable guide, who speaks your language, to help you through the maze and teach you the ropes.

Fortunately, that's my job, and something I really enjoy doing. In my contributions to the Q Wealth Report, I regularly focus not just on residency and citizenship matters, but generally on doing business in Latin America - a region that is full of opportunity right now, if you know how to tackle it!

 

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