Overview
When considering a Plan B residency in Latin America, Mexico and Paraguay stand out due to their attractive residency options, ease of process, and favorable tax regimes. This guide compares the two countries in terms of residency requirements, real estate investment opportunities, physical presence obligations, and other essential factors for digital nomads and retirees.
Residency Requirements
Mexico
Temporary Resident Visa:
Self-Sufficiency Proof: Demonstrate passive income of at least USD 4,000 per month or savings between USD 55,000 and USD 75,000, depending on the consulate.
Real Estate Investment: Not recommended for residency purposes.
Physical Presence: Required to be in Mexico once in the first year and again in the third year to transition to permanent residency.
Permanent Residency for Retirees:
Income Proof: Monthly income between USD 5,000 and USD 7,000.
Savings Proof: Savings between USD 220,000 and USD 300,000.
Physical Presence: Required as stated above for temporary residency.
Paraguay
Temporary Residency:
Income Proof: Not required to prove income for temporary residency.
Real Estate Investment: Recommended investment is around USD 70,000.
Physical Presence: Must be in Paraguay at least once a year.
Permanent Residency:
Investment Proof: Requires an investment of USD 70,000.
Physical Presence: Similar to temporary residency, requires annual visits.
Real Estate Investment
Paraguay: Investing in real estate is a practical route for obtaining residency. The recommended investment is around USD 70,000.
Mexico: Real estate investment is not an ideal route for obtaining residency due to the lack of specific incentives for property buyers.
Physical Presence Requirements
Mexico: Physical presence is more flexible with an initial visit in the first year and another in the third year to obtain permanent residency.
Paraguay: Requires annual visits to maintain residency status.
Path to Citizenship
Both Countries: Offer the possibility of citizenship after five years of residency.
Tax System
Mexico: Mandatory tax ID and a territorial tax system, meaning only income generated within Mexico is taxed.
Paraguay: Also operates a territorial tax system, taxing only local income. No tax ID is required for non-residents.
Expat Lifestyle
Mexico: Known for its vibrant tourism industry, beautiful beaches, rich culture, and diverse expat community. More tourist-centric compared to Paraguay.
Paraguay: Offers a quieter lifestyle with less tourism but still provides a welcoming environment for expats. It is ideal for those looking for a more laid-back and less commercialized living experience.
Conclusion
Both Mexico and Paraguay offer appealing options for those seeking a Plan B residency in Latin America. The choice between the two largely depends on individual preferences regarding income proof requirements, physical presence obligations, investment opportunities, and lifestyle.
Mexico: Suitable for those looking for a more tourist-friendly environment with easier initial residency requirements.
Paraguay: Ideal for those preferring fewer income proof requirements, favorable real estate investments, and a quieter lifestyle.
Before making a decision, it is advisable to consult with immigration experts or legal advisors to ensure all specific requirements and personal circumstances are thoroughly considered.
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