Wave of Brazilians seeks 'right-wing dream' in Paraguay with low taxes and accessible residency

Thousands of Brazilians line up at the border in Ciudad del Este, drawn by the 10-10-10 tax model and the promise of an economic and ideological 'paradise.' In 2025, more than half of the 40,600 residency permits granted to foreigners went to Brazilians, and the flow continues to grow in 2026.

A long line of Brazilians forms daily under the intense sun at the border in Ciudad del Este, Alto Paraná. They camp for hours, sometimes days, on the red earth, waiting for documents that will open the doors to what many call the 'right-wing dream' or the 'Switzerland of South America.'

The migratory movement, fueled by social media and digital influencers, reflects dissatisfaction with the tax burden and political landscape in Brazil. The Paraguayan '10-10-10' model — flat rates of 10% for Value Added Tax (IVA), Corporate Income Tax (IRE), and Personal Income Tax (IRP) — is cited as the main economic draw.

'Business owners are leaving Brazil to come to Paraguay. Here, the tax burden is much lower and labor laws are far more accessible,' said Dilberto Wegrnen, a 63-year-old businessman from Cascavel, Paraná. He criticized the government of President Luiz Inácio Lula da Silva and stated: 'Paraguay will soon be the greatest country in Latin America.'

Delly Fragola, a hairdresser, left Brazil because it 'no longer offers opportunities' for her business. 'They told me that here I would have easier access to labor. In Brazil, nobody wants to work,' she said.

Retiree Zena Cheraze, 68, traveled 'blindly' from Rio de Janeiro after seeing 'a lot of advertising on YouTube.' 'Everyone says something different. I came to see for myself,' she explained. She believes she will get cheaper health insurance in Paraguay. 'We on the right feel like the most oppressed people. We have no freedom,' she added, referring to the Lula government.

Retired architect Marcelo Mendes, 70, was also influenced by internet videos. 'We saw accounts from people who had already come, explaining how to get the documents,' he said. He gave up on moving to Portugal and chose Paraguay.

In 2025, Paraguay granted about 40,600 residency permits to foreigners. More than half — 23,500 — went to Brazilians, far ahead of Argentines, with 4,300. In the first three months of 2026, 9,200 new documents have already been issued to Brazilian citizens.

Cornelio Melgarejo, immigration director for Alto Paraná, estimates that up to two years ago, 80% of applications were from medical students seeking cheaper universities. Now, he notes the arrival of many business owners interested in Paraguayan labor conditions.

To handle the saturated demand, the National Directorate of Migration runs the MigraMóvil program, which brings documentation services to locations with limited access. A new edition is scheduled between May 18 and 22.

President Santiago Peña, questioned by a Brazilian journalist during independence celebrations on May 14, replied: 'What I say is friendship, great affection, brotherhood, and historical ties. I have worked hard on the relationship with Brazil. We are seeing a very large population of Brazilian immigrants in Paraguay.'