Plain-English tax-residency terms

Annual document issued by Paraguay's tax authority (SET) confirming you are tax-resident. Required for double-tax-treaty benefits and for opening or maintaining bank accounts that ask for proof of residency. Renewed each calendar year.

See: Paraguay tax residency guide

Paraguay's tax number. Equivalent to a national tax ID. Issued after residency and cedula are in hand. Required to open a Paraguayan bank account and to be issued a TRC.

See: Paraguay tax residency guide

Paraguay national identity card. Issued after the residency application is approved and biometrics are taken. Your local proof of identity for banking, leases, contracts, and tax filings.

A tax system where only locally-sourced income is taxed; foreign-source income is exempt. Paraguay, Panama, Costa Rica, Hong Kong (mostly), and Georgia operate on this principle. The opposite of "renta mundial" (worldwide taxation), which is what most of Europe uses.

See: Paraguay tax residency guide

Paraguay first issues a 2-year temporary residency. Conversion to permanent residency happens before the 2-year mark. Permanent residency renews every 10 years and only requires physical presence in Paraguay every 3 years to remain valid.

The UK's framework (in force since 6 April 2013) for determining tax residency. Combines automatic non-resident tests (e.g. fewer than 16 days in the UK if you were resident any of the prior 3 years) with the "sufficient ties" test counting UK home, family, accommodation, 40-day work, and 90+-day patterns. Specific, mechanical, and well-litigated.

See: European nomad tax playbook

Germany's deemed-disposal tax. Triggered when a German tax resident with a 1%-or-greater holding in any corporation (German or foreign) emigrates. The state treats your shares as sold at fair market value on departure and taxes the gain. Forces careful planning for founders and equity holders before leaving Germany.

See: European nomad tax playbook

Spanish principle that tax residents are taxed on worldwide income, not just income earned in Spain. Combined with Beckham Law restrictions and Modelo 720 reporting, the Spanish exit framework is one of the more onerous in Europe.

See: European nomad tax playbook

Spanish special tax regime for inbound expats and certain returnees. Caps personal income tax at a flat 24% for the first 6 years, in lieu of progressive rates that hit 47%+. Restrictive eligibility: primarily employed inbounds, with capped income and narrowing rules in 2024-26.

Common shorthand for the 183-day rule that many countries use as one (not the only) test of tax residency. Spending 183+ days in country X usually triggers residency in X. Falling under doesn't automatically make you non-resident; countries also look at family, home, business control, and centre of vital interests.

Civil-law concept used in OECD tie-breaker rules to identify the country where your "centre of vital interests" (family, economic activity, social bonds) is located. When two countries both claim you as resident, this is one of the tests used to break the tie.

Article 4 of OECD-model double-tax treaties. When two states both claim you as a tax resident, this hierarchy decides which one wins: (1) permanent home, (2) centre of vital interests, (3) habitual abode, (4) nationality, (5) mutual agreement between the two tax authorities.

Bilateral agreement between two countries to prevent the same income being taxed twice. Includes a tie-breaker article, withholding-tax reductions, and information-exchange provisions. Paraguay has DTAs only with Chile, Taiwan, Qatar and Uruguay, which is narrow, but it does not matter for territorial residents whose foreign income is already exempt under domestic law.

Spain's municipal residency registry (Padrón Municipal). Registering or deregistering matters for proving where you actually live. The Spanish tax authority looks at padrón, utility bills and physical presence together, not any single signal.

Automatic exchange of financial-account information between participating countries. Banks worldwide ask account holders for tax residency and report account balances and income to that country's tax authority annually. Paraguay joined CRS in 2021. CRS is how legitimate residency works: banks confirm the structure rather than blow it up.

See: Is Paraguay tax residency legit?

US-specific reporting framework that requires non-US financial institutions to report on US persons' accounts. Doesn't apply to non-US persons. NomadTaxHelp does not serve US persons.

EU's "tax havens blacklist" of countries deemed uncooperative on transparency. Listed jurisdictions face penalties (higher withholding, reporting). Paraguay is NOT listed, and has not been. Currently includes American Samoa, Anguilla, Fiji, Guam, Palau, Russia, Samoa, Trinidad and Tobago, US Virgin Islands and Vanuatu.

See: Is Paraguay tax residency legit?

Intergovernmental body that monitors anti-money-laundering compliance. Maintains a "grey list" (jurisdictions under monitoring) and a "black list". Paraguay exited the FATF grey list in 2022 and is currently in good standing.

Certified verification of a public document for international use, under the 1961 Hague Convention. Paraguay accepts apostilled documents from any signatory country. NomadTaxHelp-required apostilles: birth certificate, criminal record certificate, marriage or divorce certificate (if applicable).

Portugal's special tax regime for inbound residents, in force from 2009 to end-2023. Flat 20% tax on Portuguese-source professional income for 10 years; 0% on most foreign passive income. Closed to new applicants from 1 January 2024. Existing holders keep their 10-year window.

See: Portugal NHR is dead, what replaces it

Portugal's narrower replacement for NHR, in force since 2024. Targets specific roles in tech, scientific research, teaching, and certain industries. Excludes most independent freelancers and entrepreneurs that NHR previously attracted.

See: Portugal NHR is dead, what replaces it

Cyprus's regime for inbound nomads. Tax residency triggers if you spend at least 60 days in Cyprus, are not tax-resident anywhere else for that year, have ties (rented or owned home, business or employment), and don't spend more than 183 days in any other country. Combined with non-dom status, foreign dividend and interest income is taxed only via the 2.65% GHS levy.

See: Portugal NHR is dead, what replaces it

UAE introduced a 9% federal corporate tax in June 2023, with small-business relief up to AED 3M revenue. Personal income remains 0%. The real cost of UAE residency is the cost of living plus banking complexity, not the headline tax rate.