Employer of Record & PEO — 8 min
Paraguay is increasingly becoming an attractive destination for foreign companies seeking to build a global remote workforce. With its relaxed regulations and competitive labor costs, Paraguay provides a great opportunity to hire talented individuals across a wide range of fields.
Paraguay provides several visas and permits for foreign workers. These include short-term work visas for specific skills and long-term residency for those planning to stay in the country for an extended period. Thus, an employer has a range of options for hiring international workers in Paraguay.
However, ensuring employees have the proper right-to-work authorization in Paraguay is crucial. But, understanding the complexity of obtaining work visas and permits in the country can be challenging.
This guide covers all the necessary information for hiring a candidate in Paraguay without an owned entity, bringing on a non-citizen, relocating an existing employee, or allowing a digital nomad to work compliantly.
To avoid legal risks, you’ll have to ensure you have all the necessary documents to provide employees with work visas and permits in Paraguay. This guide will walk you through important considerations to remain relocation compliant with Paraguay's work visa requirements and laws.
As more and more companies embrace remote work, it's becoming increasingly common for employees to work from anywhere in the world. However, if you're considering hiring someone who will be working remotely from Paraguay, it's important to understand the country's laws and regulations regarding work permits and visas.
Failing to obtain the correct documentation for an employee working in Paraguay can result in significant fines and penalties for both the employee and the employer. Additionally, working on a tourist visa is often illegal, and governments are starting to enforce this legislation as the remote work and digital nomad trend increases.
You must ensure that team members are legally authorized to work in Paraguay before they begin their jobs. You should also be aware that working remotely from Paraguay may require additional documentation.
Don't take any chances when it comes to employees' legal right to work in the country. Proper right-to-work entitlements will protect employees from potential legal consequences and allow them to enjoy the benefits of remote work.
In Paraguay, citizens do not need to undergo a right-to-work check according to local laws. However, non-citizens such as permanent residents, temporary residents, and work permit holders may be required to complete a right-to-work check to legally work in Paraguay.
To effectively manage the right-to-work check process for non-citizens, it is important to understand the specific requirements.
Permanent residents need proof of permanent residence status.
Temporary residents need proof of temporary residence status, such as a visa or employment authorization document.
Work permit holders need proof of the work permit, as well as any other documents that are required for any specific type of work permit.
Learn how to simplify your planned relocation with this walkthrough guide. We outline the key steps for you and your employer to enable a compliant, efficient, and hassle-free move.
Non-citizens need to obtain a Paraguay work visa or work permit to work legally in the country. The specific requirements may vary depending on the type of employment and the worker's nationality.
Generally speaking, most employers will need to apply for a Paraguay work visa or work permit at the immigration office. Employers also have to ensure that they are compliant with all other local labor regulations and provide appropriate documents such as proof of residence and identification documents.
Before hiring someone who will be working in the country, it's important to understand the Paraguay work visa requirements. Here is a summary of the eligibility requirements for a work visa in Paraguay:
A valid job offer
A clean criminal record
A valid passport with at least six months remaining before expiry
A valid Police clearance certificate
Degree or professional certificate in the field of work
Want to learn more about Paraguay's work permit and visa requirements? Contact Remote’s Mobility team and get expert guidance on how you can streamline the entire process.
If you're planning to hire someone in Paraguay for an extended period, different types of long-stay visas and permits are available. Each type of visa and permit has its set of requirements and can suit an employee's specific situation.
This type of visa is for foreign citizens who have a job offer or work permit in Paraguay. It is valid for the duration of the job contract, and it is not transferable to another employer or job. It allows the visa holder to work legally in Paraguay, but it does not grant permanent residency.
This permit is valid for two years. When an employee applies for settlement in Paraguay, they will become a temporary resident. After two years of temporary residency, employees can apply for permanent resident status or can extend their temporary residency in Paraguay for another two years.
This permit does not require renewal. This type of permit is for employees who want to relocate or live in Paraguay permanently. It grants the holder permanent residency in Paraguay and allows him/her to work and live in the country indefinitely. However, the permanent residency holder must visit Paraguay at least once every three years, or the residency may be canceled.
You should carefully evaluate the employee's situation and choose the visa or permit that best suits their needs. Read our article on how you can help employees relocate internationally.
The main advantage of sponsoring an employee work visa in Paraguay is that it allows companies to hire and keep skilled foreign employees. Below is an overview of the process for sponsoring an employee work visa in Paraguay:
An employer must provide a valid job offer for the employee. The job offer must include the employee's job title, salary, and duration of the job contract.
You must apply for a work permit for the employee at the Paraguayan Ministry of Labor, Employment, and Social Security (MTESS). The application should include the employee's personal information, job offer, and a copy of the employee's passport and degree or professional certification.
You must pay the fees associated with the application for a work permit. This includes the fees for the work permit, the health certificate, and the police clearance certificate.
The employee must obtain a valid health certificate from a physician accredited by the Paraguayan authority.
The employee must obtain a police clearance certificate from their country of origin.
An overseas employee must attend an interview at the Paraguay embassy or consulate. The interview is to verify the employee's qualifications and the job offer and make sure that the applicant is not inadmissible to the country.
Once the work visa is issued, the employee can enter Paraguay and begin working. The employer will need to continue to meet certain obligations, such as paying the employee the agreed-upon salary and complying with other labor laws.
Sponsoring an employee work visa in Paraguay involves several steps. The time required to process the visa may vary, but it usually takes several weeks.
Paraguay has become an attractive destination for digital nomads because it’s easier to obtain permanent resident status and there are no taxes on income earned outside the country. There are also tax incentives offered to digital nomads.
Paraguay does not have a specific visa category for digital nomads or remote workers. Instead, the visa depends on the specific situation and the type of work.
To work in Paraguay, a digital nomad needs to apply for a work visa through the Paraguayan embassy or consulate. Different options for Paraguayan work visas or permits, requirements, and the process to obtain those are discussed in the previous sections.
If you want to hire an employee or relocate a team member to Paraguay, you’ll have to open a new entity in the country. From establishing a local physical presence and managing compliance to dealing with taxes and admin operations — this is usually a long-winded and complex process for many companies which can be expensive and time-consuming.
Alternatively, you could partner with an employer of record (EOR) who takes on the legal responsibility of hiring in Paraguay or any other country. An employer of record is a company that acts as the official employer for employees working in other countries. It handles legal compliance, payroll, benefits, taxes, and other HR-related tasks on behalf of the client company. EOR services allow businesses to expand operations into other countries without setting up a local entity, making it a cost-effective and efficient solution for hiring employees in multiple countries.
Remote takes care of the complexity of hiring and onboarding, allowing you to focus on recruiting and retaining the best talent. Understand more about relocation for international employees through this webinar.
Staying compliant with immigration laws is essential for your team and your business. It is important to have a thorough understanding of the relevant immigration rules and requirements to ensure employees can work legally in another country. Noncompliance can result in significant fines and penalties, especially for misclassifying workers.
Navigating the complex world of visas, immigration, and compliance can be overwhelming, but it is crucial to stay compliant. Additionally, taxes can become complicated when a business operates in multiple countries. Employers should also consider the risk of permanent establishment. Therefore, businesses must regularly evaluate the risk factors, as a permanent establishment is not a one-time issue.
Remote can help make it less stressful while ensuring that you and your team remain compliant with all relevant laws and regulations. Remote has the expertise to assist with every aspect of relocation, from visas and immigration to global payroll and benefits.
Learn more about relocating your international employees by downloading Remote's Relocation Guide. You can also contact Remote's Mobility team with your specific case to see how we can help you with your international hiring or relocation needs.
Create an account with G2’s top-ranked multi-country payroll software and start onboarding your first employees in minutes.
Subscribe to receive the latest
Remote blog posts and updates in your inbox.
Employer of Record & PEO — 8 min
Employer of Record & PEO — 10 min
Remote & Async Work — 8 min
Visas and Work Permits — 7 min