The number of Brazilians applying for temporary or permanent residency in Paraguay has more than doubled in the last five years, according to official data from the National Directorate of Migration. In 2020, the year of the pandemic, 10,039 requests were recorded. In 2025, the total reached 23,526 — 18,903 temporary and 4,623 permanent. In the first quarter of 2026 alone, 9,195 applications have already been counted.
The movement, once limited to occasional shopping trips to Ciudad del Este or Pedro Juan Caballero, now constitutes a larger-scale demographic phenomenon with a tendency to consolidate. According to a report by the British broadcaster BBC, Brazilians who choose Paraguay are motivated by “political stances and the search for a more comfortable life with lower taxes.” Influencers from the neighboring country highlight the advantages of residing in Paraguayan territory.
“99% of those who come are right-wing,” said Roberta Viegas, a native of Rio de Janeiro who has lived in Paraguay for a year, in an interview with the BBC. Identification with the political stance of President Santiago Peña, who took office in August 2023, is one of the cited factors.
The main attraction, however, is the reduced tax burden. While in Paraguay the Value Added Tax (IVA), the Business Income Tax (IRE), and the Personal Income Tax (IRP) are all 10%, in Brazil the IVA is expected to exceed 25% by 2033, and income tax ranges from 7.5% to 27.5%. The maquila regime is also cited as a relevant factor, allowing the import of raw materials with benefits, local value addition, and export with exemptions.