So, I recently headed to the tax office in Paraguay to sort out getting a tax ID number. I wanted to do the right thing and pay my taxes, you know, to make life easier for banking stuff. But guess what? The tax official there dropped a bombshell on me – he said I didn’t need a tax ID because I don’t have an employer in Paraguay and my clients aren’t there either. So basically, if your work is all digital and your clients and boss are outside Paraguay, you’re off the hook tax-wise.
The only downside to this setup is the banking restrictions. Paraguayan banks have this cap of $1000 per month per bank for deposits. But hey, here’s a workaround – Western Union to the rescue! They let you send larger sums, with just a 2% charge. So, banking problem? Solved!
Now, onto the juicy part – buying real estate in Paraguay. Turns out, it’s a breeze. There’s a minor 2% tax on real estate deals, and you can easily pay for it through a wire transfer from a foreign bank. The only hiccup is this anti-money laundering rule that asks for a “contrato de compra venta,” which is basically a purchase agreement. Any escribana (notary) can whip that up for you.
So, how does it work practically? You just get the purchase agreement, the seller takes it to their bank, and voilà, the wire transfer is good to go. And the cherry on top? No more tax ID headaches!