The order that avoids redoing paperwork is: a documented legal and fiscal address, temporary residency at the DGM, the cédula, a RUC with the DNIT, a bank account, and only then a decision about renting a home or buying. Each step gives the next one something to stand on.
Short answer: the order that avoids redoing paperwork
Many people who move to Paraguay lose time because they start with the visible, emotional decisions: where to live, what to buy. The documents come later and then don't match. A cleaner sequence is the reverse: establish a documented address, then the immigration file, then the ID, then the tax number, then the bank, then housing.
- Address: lease agreement plus certificate of domicile.
- Temporary residency at the Dirección General de Migraciones (DGM).
- Cédula from the Identificaciones department of the National Police.
- RUC with the DNIT.
- Bank account.
- Housing: rent a home to live in, or buy.
For the detail of the immigration track alone, see our guide to temporary and permanent residency and the cédula. This article covers the whole order.
Why Paraguay is drawing more interest
Remote workers, online founders and plan-B seekers have been paying closer attention to Paraguay. The reasons people cite are mostly practical: a residency route that is relatively accessible, a low cost of living, and a tax system built on a territorial approach.
That approach comes from Law 6380/2019, in force since 2020. As a general rule, income tax applies to Paraguayan-source income. It is not an absolute: certain capital income from foreign sources can have specific treatment under the personal income tax (IRP), whose scale is progressive up to 10%. The general business income tax (IRE) is 10%.
On the macro side, Moody's raised Paraguay's sovereign rating to Baa3, investment grade, in July 2024. None of this replaces advice for your own situation, but it explains why the question "what do I do first?" is being asked more often.
Step 1: a documented legal and fiscal address
An address is the document most other steps quietly depend on. Banks, fintechs and agencies want a place that appears consistently across your papers. Establishing it first means every later form carries the same details.
Real lease agreement vs. borrowed address
A mail drop or a registered-agent-style address is not the same thing as a lease agreement over a real apartment. Banks and payment processors increasingly look for coherent, verifiable data, and many ask for documents less than six months old. A 12-month lease agreement on a real unit, together with a signed certificate of domicile, gives you a consistent paper trail. Our service works this way: the unit is assigned by us within Asunción's Eje Corporativo, you don't choose the neighborhood, and the documents are signed electronically.
Lease agreements and certificates of domicile are commonly used as proof of address for banks, fintechs and formalities. Acceptance always depends on each institution. For how this plays out with KYC, read proof of address for banks and fintechs.
You don't need to live there; ANDE utility bills are usually in the owner's name
The address is a legal and fiscal domicile, not a place you occupy. You don't need to live in the apartment or travel there beforehand. It does not include residential use rights or keys.
One point surprises newcomers: in Paraguay it is not customary for ANDE (electricity) or Essap (water) bills on a rented apartment to be in the tenant's name. They usually remain with the owner or the administrator. Don't build your plan around a utility bill in your name.
Steps 2 and 3: temporary residency at the DGM (Law 6984/2022), then the cédula
Immigration is governed by Law 6984/2022, which replaced Law 978/1996. The scheme is temporary residency, up to two years, followed by permanent residency. The competent body is the DGM.
Once residency is granted, you apply for the cédula, the national ID card, issued by the Identificaciones department of the National Police. Local counterparties usually ask for it, which is why it comes before the tax and banking steps. Exact document lists change, so confirm current requirements with the DGM or a local lawyer. If you want the immigration file handled for you, a custom quote is available through the residency request form.
Steps 4 and 5: RUC with the DNIT and a bank account
The RUC is Paraguay's taxpayer ID. The tax authority is the DNIT, created by Law 7143/2023, which merged the former SET and the customs directorate. Its management system is Marangatu.
In practice, the RUC does not require an ANDE bill in your name, so the utility-bill issue above does not block you. With a RUC and cédula in hand, a local bank account becomes much more realistic. Each bank sets its own onboarding rules and decides on its own; nothing here promises approval.
If you plan to set up a company later, the EAS (Empresa por Acciones Simplificada, Law 6480/2020) allows a single shareholder and simplified incorporation through SUACE. That is a separate step, worth planning once the personal basics are in place.
Step 6: only then choose between renting a home and buying in Asunción
Housing comes last because it is the easiest decision to get wrong from abroad. Distinguish two things: the documented legal and fiscal address, which should be resolved first, and a costly monthly rental to actually live in, or buying property sight unseen, which are better decided after you have spent time in the city.
Once you are there, you can compare areas, commute, noise and building quality with your own eyes. For practical context on renting, see moving to Paraguay: renting and your address in Asunción.
The sequence at a glance
| Step | What it solves | Agency / document | Must you be in Paraguay? | What it unlocks |
|---|---|---|---|---|
| 1. Address | A documented, consistent domicile | Lease agreement + certificate of domicile | No | Proof of address for later forms and KYC (acceptance per institution) |
| 2. Temporary residency | Legal immigration status | DGM, Law 6984/2022 | Confirm with the DGM or a local lawyer | The cédula |
| 3. Cédula | National ID | Identificaciones, National Police | Confirm with a local professional | RUC and banking |
| 4. RUC | Taxpayer registration | DNIT, Marangatu | Confirm with the DNIT | Invoicing, tax filings, bank onboarding |
| 5. Bank account | Local banking | Bank of your choice | Depends on the bank | Everyday operations in Paraguay |
| 6. Housing | Where you actually live | Rental or purchase contract | Advisable to see it first | A residential base, chosen with local knowledge |
Immigration residency is not tax residency
Getting residency from the DGM is an immigration status. Tax residency is a separate question, decided by tax rules in Paraguay and in the country you come from. Moving does not automatically end obligations at home.
- United States: US citizens are taxed on citizenship, so moving abroad does not end US filing. Depending on your situation, the FEIE and FBAR and FATCA reporting may still be relevant. Work with a US tax professional.
- Canada: departure rules and residential ties matter. Check them with a Canadian adviser before you leave.
- United Kingdom: the statutory residence test and any recent regime changes should be checked with a UK adviser.
The territorial approach under Law 6380/2019 is a general rule, not a promise about your total tax position.
Common mistakes when rushing
- Starting with housing: signing a long rental to live in or buying before the documents are in order.
- Using a borrowed or mail-drop address that banks flag, then having to redo forms.
- Waiting on a utility bill in your name that will likely never exist.
- Confusing residency types and assuming immigration status changes your home-country tax duties.
- Assuming a bank will accept a given document set without asking the bank.
This content is informational and does not constitute legal or tax advice; consult a licensed professional in Paraguay and in your home country.