In Paraguay we do not have “digital nomad visas” per se, but territorial taxation allows foreign citizens that obtain the regular standard Paraguayan residence permit, to be deemed as a tax resident here, and to not pay taxes if the services they offer are provided to clients located abroad and not exploited in Paraguay.
Now, there are a few things to consider regarding the tax residency, for example:
(i) Some countries consider that you are a tax resident elsewhere (in Paraguay in this case) if you solely prove to have a residence permit there granted by the immigration authority.
(ii) Other countries require their taxpayers to submit a tax residence certificate to prove that they are a tax resident elsewhere. In Paraguay, in order to obtain the tax residence certificate, foreigners need to obtain their Paraguayan documents (residence permit granted by the immigration authority and ID card granted by the police) and stay in Paraguay for 120 days in a 365 days period.
For the latter, if you provide mostly online services to your customers, meaning if you really are a “Digital Nomad”, living in Paraguay for 120 days every year could be a very good and excessively cheap experience.
You can contact me to obtain your Paraguayan documents and stop paying huge amount of taxes wherever you are.
