Paraguay tax residency: territorial taxation

Paraguay taxes only locally-sourced income — source: Dirección Nacional de Ingresos Tributarios (DNIT) — IRP under Ley N° 6380/2019, last reviewed 2026-06-26.

Paraguay taxes only Paraguay-source income — foreign-source income is generally outside its tax net. So there is no day-count threshold that makes your worldwide income taxable here the way there is in a worldwide-tax country.

Reviewed by Quentin Dupard, founder · last reviewed 2026-06-26 · How we research

Income tax: Local-source only
Day-count rule: No threshold
Regime: Territorial
Last reviewed: 2026-06-26

Why is there no day count to track in Paraguay?

A "183-day rule" exists to decide when a country can tax your worldwide income. Paraguay doesn't tax worldwide income in the first place — it reaches only income arising in Paraguay — so crossing a day count doesn't expand what's taxable. That's why this page shows no threshold and Yuravia raises no residency alert for Paraguay.

The catch is the country you're leaving. Most worldwide-tax countries keep taxing you until you genuinely break residency there — and many use their own day count to decide. Time in Paraguay is only tax-free if you also stay under the threshold that still applies back home.

Paraguay at a glance

Tax year: Calendar year (1 January – 31 December).
How days are counted: Not applicable as a worldwide-income trigger — the IRP has no day-count test that taxes foreign income; what matters is the source of the income. A "120-day" figure sometimes cited by advisers concerns civil-law domicile / the residency permit, not any worldwide-income tax test.
What residency means: Even individuals tax-resident in Paraguay are taxed by the IRP ONLY on Paraguayan-source income. Foreign-source income — overseas clients, foreign dividends, offshore investments — is entirely outside the IRP. No number of days makes worldwide income taxable.
Notable regime: IRP (Impuesto a la Renta Personal) under Law 6380/2019: a strictly territorial personal income tax — progressive 8–10% on Paraguayan-source personal-services income (non-taxable threshold ~₲80,000,000 ≈ USD 12,000/yr), and 8% on Paraguayan-source capital gains/rents. Foreign-source income: 0%.

Official source

Dirección Nacional de Ingresos Tributarios (DNIT) — IRP under Ley N° 6380/2019. View the primary guidance ↗

Treatment last checked against this source on 2026-06-26.

Frequently asked questions

Do you pay income tax in Paraguay?

Paraguay operates a territorial system: residents are generally taxed only on income sourced in Paraguay, and foreign-source income is typically not taxed. Other taxes (social, property or indirect taxes) may still apply — confirm with the official source below.

Does a 183-day rule apply in Paraguay?

Day-counting drives tax residency where residents are taxed on worldwide income. Because Paraguay only taxes locally-sourced income, a day count is not an income-tax trigger here. Days can still matter for immigration status or for obtaining a tax-residency certificate (for treaty purposes), so check those rules separately.

Then why track my days in Paraguay?

Your days in Paraguay still count toward thresholds in OTHER places — the country you came from, the Schengen 90/180 limit, and anywhere else you spend time. A tax-free year somewhere only helps if you don't accidentally stay long enough to remain tax-resident back home. Yuravia tracks every country at once and warns you before you cross a line.

Other countries

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Not tax advice. This page summarises one jurisdiction's income-tax treatment from an official source. Other taxes, immigration rules and your home country's residency rules may still apply, and rules change. Always confirm with the official source above or a qualified adviser.

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