Paraguay has changed how foreigners with temporary residency can convert to permanent residency. Under Resolution 407, issued on May 28, 2026, economic solvency can no longer be treated as a formality. Applicants must now prove an adequate, sufficient, and verifiable economic connection to Paraguay.
What changed
Since temporary residency was introduced at the end of 2022, many applicants could move from temporary to permanent residency with limited evidence of actual economic activity.
Previously, proof of solvency could often be satisfied with documents such as:
- an apostilled and translated university degree;
- a Paraguayan RUC, the local tax identification number;
- a constancia de RUC;
- a tax compliance certificate showing that required filings were up to date.
The issue was that these documents did not necessarily prove income, business activity, invoices, employment, local revenue, or any real contribution to the Paraguayan economy.
Resolution 407 replaces the previous patchwork of rules issued between 2022 and 2024 with a unified framework. The key change is that solvency must now be proven, not presumed.
Applicant categories under the new rules
The resolution establishes 12 categories of applicants:
- professionals;
- technicians;
- employees;
- independent workers;
- digital nomads;
- property owners;
- shareholders;
- religious workers;
- farmers;
- retirees;
- dependents;
- students.
Each category has its own documentation requirements.
Professionals and technicians
A university degree or professional certificate is no longer enough by itself.
This category includes regulated professions such as doctors, engineers, electricians, plumbers, and others whose work requires a specific degree or professional qualification.
Applicants now need to show that they actually exercised their profession in Paraguay during temporary residence. The transcript identifies three possible ways:
- IPS contributions, if employed by a Paraguayan company;
- VAT filings from the last three months;
- the latest IRP filing from the previous year.
IRP refers to personal income tax. According to the transcript, it applies when yearly local revenue in Paraguay exceeds 80 million guaraníes, stated as around $13,000 at the cited exchange rate. For many applicants, the practical route will likely be showing the last three months of VAT filings.
Independent workers, commerce, and services
This is presented as the most common category for foreigners in Paraguay, especially those who declared “commerce” as their profession when applying for temporary residency.
Applicants in this category need:
- a personal RUC, issued to the applicant as an individual rather than a company or separate legal entity;
- either the latest three months of VAT filings or the latest IRP filing.
The VAT filings must cover the three months before applying to convert from temporary to permanent residency.
The practical implication is that many foreigners will need to open a RUC, issue invoices, file taxes, and pay tax in Paraguay before applying for permanent residency.
The resolution does not specify a minimum revenue amount. The transcript suggests that declaring at least one minimum salary per month may be a reasonable working assumption, but this is not stated as a formal rule in the resolution.
Digital nomads
Digital nomads are one of the new categories introduced by Resolution 407.
The transcript states that digital nomad applicants need a certificate or proof of employment relationship showing:
- income;
- how the income is regularly paid.
If the document is issued abroad, it must be apostilled and translated.
This route may be straightforward for a remote employee with an apostilled employment contract. It is less clear for someone who owns a foreign company, such as a US LLC, and effectively works for their own business.
The transcript flags a practical problem: the digital nomad category did not exist when many people applied for temporary residency, so their declared profession may instead be professional, technician, independent worker, or commerce. How such applicants can switch into the digital nomad route at conversion is unclear.
Real estate owners
Property ownership is another new route under Resolution 407.
Applicants may use Paraguayan real estate ownership as proof of economic solvency, but there is an important caveat: they may be required to show invoices or additional documentation proving that the property generates income.
This means that simply owning property may not be enough if the property is not producing rent or another form of income.
The transcript suggests that someone buying property worth more than $200,000 may prefer to consider applying directly for permanent residency through an investor path instead, though this is presented as practical commentary rather than a rule in the resolution.
Retirees and pensioners
Retirees may qualify by showing an official apostilled document from their country of origin proving that they receive a pension and stating the pension amount.
The transcript notes that the resolution does not specify clear numerical thresholds for pension income.
Dependents
A spouse, child, or other qualifying dependent may be included under another resident who satisfies the solvency criteria.
This may be useful for families where one person can prove income, employment, business activity, pension income, or another accepted basis, while other family members cannot independently satisfy the requirement.
Less common routes
The transcript also mentions other possible categories, including:
- investor in a Paraguayan company;
- farmer or rancher;
- religious worker;
- student over 18 still enrolled in school.
These are described as less relevant for most foreign applicants.
Practical steps for temporary residents
For many temporary residents, the main practical step is to open a personal RUC and begin creating a record of declared activity before applying for permanent residency.
This is especially important for applicants converting under:
- commerce;
- services;
- independent work;
- professional or technical activity without Paraguayan employment;
- income-producing real estate.
The transcript suggests keeping regular monthly revenue above the minimum salary level, issuing invoices, filing taxes, and paying taxes legally in Paraguay for at least three months before applying for conversion.
For applicants with foreign-source income, the transcript suggests that it may not be necessary to localize all income, but that at least a portion should be declared through the Paraguayan RUC. One example given is invoicing a foreign company, such as a US LLC, from the local Paraguayan RUC.
Why the change matters
The change mainly affects people who obtained temporary residency as a backup plan but did not build economic or tax ties to Paraguay.
For people using Paraguay as a serious tax residence, the transcript argues that the change may not alter much, because they already needed to maintain real ties, file taxes, and show economic substance.
The larger issue is the distinction between legal tax planning and holding a residence document with no economic reality behind it. The transcript emphasizes that tax authorities in countries such as Germany, Italy, the UK, Canada, and Australia increasingly look beyond tax residence certificates and examine real ties, including:
- where economic interests are centered;
- where the person has a permanent address;
- whether the person has local filings;
- whether the person pays tax locally;
- whether there are bank accounts, phone numbers, and other practical connections.
A Paraguayan RUC with zero activity, or no meaningful filings, may not be enough to support a serious tax residency position.
Resolution 407 does not make permanent residency impossible. It makes the conversion process more dependent on documented economic activity, tax filings, income, employment, pension income, property income, or another verifiable connection to Paraguay.
