Say Goodbye to Crypto Taxes
A Guide For Those Who Value Financial Freedom
Today, I'm thrilled to delve into a topic close to my heart and crucial for our freedom and privacy. In this era, having the flexibility to call multiple places home is akin to a vital insurance policy for our adventurous lives. Guess what? I'm going to talk about securing permanent residency in Paraguay.
With my digital nomad lifestyle, I decided two years ago to establish my permanent residency in this stunning country, which has since become one of my homes. There are so many benefits to having permanent residency in Paraguay, and I can't wait to share them with you. To catch your attention from the beginning, Paraguay is a cryptocurrency tax-free country.
This place is a gem for those eager to escape the ordinary and embrace something entirely new. So, let's dive into the details of making Paraguay your new base.
Step 1: Dive Into Paraguayan Life
The first step to becoming a tax resident of Paraguay starts with applying for permanent residency. Many agencies can assist you in this process, simplifying your journey to financial freedom. It's not free, but it's cheaper than taxes.
Paraguay taxes local income at 10% and unlike many other countries, doesn't require property ownership for obtain residency.
Once you have permanent or temporary residency in Paraguay, obtain their ID. You'll remain a citizen of your home country but enjoy the benefits of Paraguayan residency. The benefits are the same for both temporary and permanent residents, except if you're temporary, you have more responsibilities.
What are the conditions for permanent residency in Paraguay? Since November 2022, you now need to apply for 2-year temporary residency first. You must visit Paraguay annually during this period. After 2 years, you can apply for permanent residency, which then requires a visit only once every three years.
If you want to make Paraguay your new home, you've got to do more than just show up. Consider setting up a local bank account, getting a local phone number, and even snagging a driver's license. It's like marking your territory but in a cool, legal way. The more you're tied to Paraguay, the more it becomes the seat of your permanent interests, affecting your tax residency.
Step 2: Say Goodbye to Your Old Stuff
Here's where it gets real. To truly embrace the nomad life, consider cutting ties with your old place. Selling your flat or car in your previous home country? Yep, it sounds drastic, but it's liberating! The main reason to cut ties with your native country is that the less you associate with it, the less you consider it your seat of life interests, bringing Paraguay to the forefront. However, your citizenship in your country of origin remains, allowing you to enjoy the benefits of both countries simultaneously!
Step 3: Play It Smart with Taxes
As a resident, register with the SET, Paraguay's tax office. After this step, you're already a Paraguayan tax resident, even during your temporary residency. There's a catch, though; it's certainly not that simple. That's why this step isn't for everyone.
Residency alone doesn't make you a Paraguayan tax resident. You must limit your stay in other countries to less than 186 days per year. In most countries, staying over 186 days triggers tax liability there. Below that, tax is due in your country of residence.
In Paraguay, submit monthly tax declarations. As a tax resident with no local income, your declarations will consistently show zero income, keeping you tax-free. Use your tax savings for adventures or to help those in need.
Step 4: Embrace the Paraguayan Vibes
Paraguay offers more than just tax perks. I'm talking about killer steaks, breathtaking sunsets, and streets filled with the friendliest dogs you'll ever meet. Plus, you're right next door to Brazil, Argentina, and Bolivia. Adventure is always just a hop, skip, and a jump away.
Why Paraguay?
Sure, it's not everyone's cup of tea, but for us web3 friends, it's pretty much a dream. It's all about living freely, exploring new places, and, yes, enjoying some financial benefits along the way.
If you're digging this idea, spread the word. It's about sharing the love and maybe, just maybe, convincing more friends to join this crazy ride.
So, what do you say? Ready to explore what Paraguay and this lifestyle have to offer? It's all about taking that leap, chasing freedom, and maybe finding a new place to call home.
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Not financial or tax advice. This article is for informational purposes only and should not be construed as tax or financial advice.