Tax procedures in Paraguay: the step-by-step checklist

If you are already clear that you want to invest or live in Paraguay, the next step is the tax procedures: the concrete paperwork that turns intent into something formal before the DNIT.

Step 1: get the RUC

The RUC (Single Taxpayer Registry) is the gateway to the entire Paraguayan tax system, the equivalent of the Spanish NIF. Without an active RUC you cannot issue invoices, open corporate bank accounts or, later on, apply for the tax residency certificate. It is processed before the DNIT, either in person or through a representative with power of attorney.

Step 2: stay up to date with Marangatu

The online Marangatu system is where VAT and personal/corporate income tax returns are filed periodically. An inactive RUC or one with pending returns blocks any further procedure, including the tax residency certificate — which is why it is worth handing this part to a local accountant from day one.

Step 3: the tax residency certificate

To obtain it, as detailed by Ferrere, at least two conditions are needed: being registered with the RUC and being up to date with tax obligations. The certificate is issued by the DNIT and is the document later presented to the tax authority in Spain (or wherever relevant) to prove the change of tax residency.

Can everything be done remotely?

Many of these steps can be handled through an apostilled power of attorney from Spain, without needing to travel for every step. However, some biometric procedures (the identity card) usually do require being physically present at least once.

Common mistakes that delay the process

Specialised firms cite three recurring mistakes: not apostilling documentation correctly at origin, letting the RUC become "frozen" without realising it and later losing time reactivating it, and underestimating the time needed to ship physical documentation between Spain and Paraguay.

Final recommendation

Given the volume of paperwork and the particularities of each case (company vs. individual, real-estate vs. productive investment), the most common practice among Spaniards is to hire a local accountant or law firm from the start, rather than trying to handle the tax procedures alone from a distance.