Paraguay does not have a standalone "retiree visa" the way Panama has its famous Pensionado program. Instead, retirees apply through the standard temporary residency process and declare their profession as "Jubilado" (retiree).
This distinction matters because it means the pathway is simpler than many people expect. You are not applying for a special program with unique requirements. You are applying for temporary residency like everyone else, just with pension documentation as your proof of solvency.
How the Jubilado Pathway Works
When you apply for Paraguay temporary residency, you must declare your profession or activity. Retirees declare as "Jubilado" (retiree) or "Pensionado" (pensioner).
Your proof of solvency is your pension, retirement, or annuity certificate. This document must be issued by the relevant authority in your home country, properly apostilled, and clearly state the amount you receive.
That is the only difference between a retiree application and any other temporary residency application. The process, timeline, and requirements are otherwise identical.
After 2 years of temporary residency, you convert to permanent. After 3 years of permanent residency (with physical presence requirements), you become eligible for citizenship.
Income Requirements
The government requires proof of monthly income equivalent to approximately 100 minimum wages. At current rates, this works out to roughly $1,300 USD per month.
This income must come from external sources, meaning sources outside Paraguay. Your pension, Social Security, military retirement, or annuity payments all qualify.
Important: This is a solvency demonstration, not a deposit or investment. You are proving you can support yourself without becoming a burden on Paraguay's social systems. The money stays yours - it is not locked up or held by the government.
What Counts as Qualifying Income
Clearly qualifies:
May qualify (verify during consultation):
Does not qualify:
The key is that income must be regular, ongoing, and documentable through official certificates or statements.
Required Documents
Standard temporary residency documents (all applicants):
Jubilado-specific document:
This certificate must come from the issuing authority (Social Security Administration, pension fund, annuity provider, etc.) and must be apostilled in your home country before you travel to Paraguay.
If your pension documentation is not in Spanish, you will also need a certified translation done by a licensed public translator in Paraguay.
The Process
Step 1: Obtain your pension certificate
Request an official certificate or letter from your pension provider stating your monthly benefit amount. In the US, you can request a Social Security benefit verification letter online.
Step 2: Apostille all documents
Get apostilles on your birth certificate, criminal background check, marriage certificate (if applicable), and pension certificate.
Step 3: Travel to Paraguay
Plan for 3-5 business days minimum. You must be physically present to submit your application.
Step 4: Obtain local documents
Get your INTERPOL certificate and Paraguay police background check. Complete sworn declarations with a local notary.
Step 5: Submit application
Your application is submitted to Migraciones. You declare your profession as "Jubilado" and submit your pension certificate as proof of solvency.
Step 6: Receive temporary residency
Processing takes 4-8 weeks. Upon approval, you receive your temporary residency card valid for 2 years.
Step 7: Convert to permanent (after ~21 months)
Before your temporary card expires, apply to convert to permanent residency. You will need updated pension documentation showing your income is still active.
Tax Benefits for Retirees
This is where Paraguay becomes especially attractive for retirees. The territorial tax system means Paraguay only taxes income generated within its borders. Your pension, Social Security, investment income, rental income from properties abroad - none of it is taxed by Paraguay. Period.
This is not a special exemption or a temporary incentive program. It is the fundamental structure of Paraguay's tax code. Foreign-sourced income is simply not subject to Paraguayan taxation.
What this means practically:
You may still owe taxes to your home country depending on your citizenship and tax residency status. U.S. citizens are taxed on worldwide income regardless of where they live. But Paraguay itself will not add another layer of taxation on your foreign income.
Path to Permanent and Citizenship
Temporary to permanent: 2 years
After approximately 21 months of temporary residency, you can apply to convert to permanent. The conversion requires updated documentation including fresh background checks and proof that your pension income is still active.
Permanent residency maintenance
Once permanent, you only need to visit Paraguay once every 3 years. You can live anywhere in the world.
Citizenship: 3 years after permanent
After holding permanent residency for 3 years, you become eligible to apply for Paraguayan citizenship. This requires approximately 183 days per year physical presence during those 3 years, plus basic Spanish proficiency and a civics exam.
Paraguay allows dual citizenship, so you would not need to renounce your original nationality.
Why Paraguay Over Other Retiree Destinations
Lower income threshold - Panama's Pensionado requires $1,000/month but the country is significantly more expensive to live in. Other popular destinations have higher thresholds or require substantial investments.
Territorial taxation - Many retiree destinations offer tax incentives, but few have a pure territorial system. In Paraguay, foreign income simply is not taxed, no exemptions to apply for, no special status to maintain.
Minimal presence requirements - Visit once every 3 years to maintain permanent residency. Most comparable programs require visits every 6 months or annually.
Path to second citizenship - Three years to citizenship eligibility is among the shortest in the world. A Paraguayan passport provides visa-free access to 140+ countries including the EU.
Lower cost of living - Your retirement income stretches further. Quality apartments in Asuncion rent for a fraction of comparable units in Panama City or popular Mexican destinations.
The trade-offs: Paraguay is not Panama or Costa Rica. The expat infrastructure is less developed. English is not widely spoken. Banking is functional but basic compared to major financial centers. You will need some willingness to adapt and learn basic Spanish.
Common Questions
Can my spouse be included?
Yes. Your spouse applies for their own temporary residency. They can use your pension income as proof of solvency for the household.
What if my pension is below $1,300/month?
Consult with us. If you have multiple income sources that together exceed the threshold, or if you have substantial savings that demonstrate solvency, there may be options.
Do I need to actually retire in Paraguay?
No. You can obtain residency, maintain it with minimal visits, and continue living wherever you want. Many retirees use Paraguay as a Plan B, a second residency and potential path to citizenship, while living elsewhere.
Can I work in Paraguay as a retiree?
The traditional jubilado designation restricts paid employment unless specifically authorized by the migration authority. If you want to work, you may want to declare a different profession and use alternative solvency documentation.
What about healthcare?
Paraguay has both public and private healthcare systems. Most expats use private facilities, which offer good quality care at lower costs than the US. Private health insurance is available and affordable.
Ready to Start?
If you have pension income of approximately $1,300/month or more, the Paraguay jubilado pathway is one of the most accessible and tax-efficient retiree residency options available.
The process is straightforward, the costs are low, and the territorial tax system means your retirement income stays yours.
Ready to find out if you qualify? We will verify your income meets the threshold, confirm the exact documents needed from your country, and walk you through the timeline. Book Your Free Consultation
*This guide reflects requirements under Ley 6984/2022. Immigration rules change. Verify current requirements before making decisions. Plan B Expat provides residency consulting - we are not a law firm.*
