Paraguay Permanent Residency By Investment Program | An Incomplete Guide

Overview:

In 2013, the Paraguayan government established the Unified System for Opening and Closing Companies (SAUCE), an overseas investment regulatory agency designed to stimulate domestic business development.

SAUCE functions as a consortium of Paraguayan companies. Under local statutes, foreign managers of SAUCE member companies are directly eligible to apply for permanent residency in Paraguay. Consequently, the core mechanism of Paraguay’s permanent residency by investment program involves foreign nationals establishing a company, applying for SAUCE membership, and thereby securing permanent residency.

Currently, eligibility for SAUCE membership requires a demonstrable clean criminal record, the establishment of a company in Paraguay, and a commitment to invest no less than $70,000.

This minimum investment of $70,000 is not required as an upfront lump sum. Instead, applicants must furnish a credible business plan demonstrating the company’s projected positive development in Paraguay over a ten-year period, alongside a commitment to invest the stipulated amount within that timeframe.

This program represents a notable South American investment immigration pathway, facilitating the expedited acquisition of permanent residency. Typically, the entire process, from company formation to the issuance of the permanent residency card, does not exceed three months, with some cases concluding in as little as 45 days.

There are two points to note about this project:

1. During the operational phase, should a company’s development significantly diverge from its original business plan, a SAUCE representative will conduct a review, which may lead to the revocation of permanent residency.

However, it is noteworthy that obtaining Paraguayan citizenship can potentially reduce a portion of the committed investment amount.

2. While the full $70,000 investment is not required upfront, the initial application phase for permanent residency—encompassing form submission, company formation and registration, and the issuance of the residency card—typically entails government fees alone amounting to approximately $14,000.

Application Process:

The first step of this program is to prepare all the necessary materials involving personal information and company establishment.

Generally, you need to apply for an investment residency entry visa at the Paraguayan consulate or embassy, enter Paraguay to prepare for setting up a company, complete preliminary work such as perfecting the business plan, and submit the business plan to SAUCE, applying to become its member (constancia de inversionista).

Required documents for this program include:

• Applicant’s personal identification documents: including valid passports and copies of all main and secondary applicants; six passport-sized photos; birth certificates, marriage certificates, and other relationship proof documents for main and secondary applicants.

• Business plan.

• SAUCE membership proof: you need to be certified as a member by SAUCE.

• Proof of financial resources: your personal or company account must have a deposit of at least $70,000.

• Medical examination report: all main and secondary applicants must undergo a medical examination.

• Criminal record certificate: all adult main and secondary applicants must provide a criminal record certificate issued by the local law enforcement agency and the Paraguayan police.

All documents outside of Paraguay must be notarized, and all non-Spanish documents need to be translated into Spanish.

After preparing all the documents, there are two ways to apply for permanent residency in Paraguay through investment: submit the application at an overseas Paraguayan consulate or embassy, or entrust an immigration lawyer in Paraguay to submit the application to the immigration department on your behalf.

Generally, after the visa is issued, you need to set up the company according to the steps of the business plan within 45 days in Paraguay with the assistance of a SAUCE representative and start local business activities.