Paraguay Permanent Residency By Investment Program | An Incomplete Guide

Overview:

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

SAUCE is a conglomerate of Paraguayan companies. According to local laws, overseas managers of SAUCE member companies are eligible to directly apply for permanent residency in Paraguay. Therefore, the essence of Paraguay’s permanent residency by investment program is for foreigners to create a company, apply to join SAUCE, and thus obtain permanent residency.

Currently, to become a member of SAUCE, you need to prove a clean criminal record, establish a company in Paraguay, and invest no less than $70,000.

This minimum investment of $70,000 does not have to be completed in one go; you only need to provide a credible business plan that proves your company will develop positively in Paraguay within ten years and invest such an amount of money within that timeframe.

This is a South American investment immigration channel that allows for quick acquisition of permanent residency. Generally, from the time you create the company to obtaining permanent residency, the entire process does not exceed three months, with the fastest being 45 days.

There are two points to note about this project:

1. During the actual operation, if your company’s development deviates from the original business plan, a SAUCE representative will review it and may revoke your permanent residency.

However, if you obtain Paraguayan citizenship, you can reduce part of the committed investment amount.

2. Although the entire $70,000 investment amount does not need to be provided all at once, during the initial application for permanent residency, from filling out the application form, creating and registering the company, to obtaining the residence card, the whole process generally requires about $14,000 in government fees alone.

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.

Dependents:

In the Paraguayan permanent residency by investment program, the primary applicant’s spouse, unmarried siblings, minor children, and economically dependent children under of 30 can jointly obtain permanent residency as secondary applicants.

Citizenship:

Permanent residency in Paraguay does not require actual residence: you only need to enter Paraguay once every three years and renew your permanent residency card every ten years to maintain your residency status.

For investor program, if your company does not operate according to the submitted business plan, SAUCE may revoke your permanent residency.

Permanent residents of Paraguay who have resided in the country continuously for three years, spending at least 183 days each year, are at least 18 years old, have no criminal record, and engage in legitimate professional activities (such as business, work, research, etc.), can sing the Paraguayan national anthem, and pass a Spanish or Guarani language test and a test on Paraguayan politics and history, are eligible to apply for citizenship.