Client profile: they've reduced their taxes by a factor of 10 thanks to Paraguay
Figures and theoretical guides are good. Real stories are better. In this article, we present three anonymized client portraits who took the leap and radically transformed their tax and financial situations thanks to Paraguay. Three different profiles, three different journeys — but the same result: their taxes were divided by 10, by 15, sometimes by 30. And their quality of life improved at the same time.
Names have been changed to protect our clients' confidentiality. The figures and situations are real and representative of the transformations we observe daily among French speakers moving to Paraguay in 2026.
Portrait #1: Thomas, 32, freelance web developer
Initial situation in France
Thomas is a freelance web developer, specializing in developing e-commerce platforms for European SMEs. Based in Lyon, married with no children, he invoices between €8,000 and €12,000 per month depending on the projects. Over the year, his income fluctuates around €120,000.
His structure: classic SASU, with salary and dividend payments. Here is the actual calculation of his tax and social security burden in France:
| Item | Annual amount |
|---|---|
| Turnover | €120,000 |
| Social security contributions (URSSAF, retirement, provident fund) | ~€28,000 |
| Corporate tax (15% then 25%) | ~€12,000 |
| Income tax (salary + dividends) | ~€14,000 |
| Social security levies on dividends (PFU) | ~€5,000 |
| CFE and other taxes | ~€2,000 |
| TOTAL levies | ~€61,000 |
| Net in pocket | ~€59,000 |
Thomas worked 200 days a year to keep less than half of what he invoiced. This realization prompted him to explore expatriation. "I felt like I was fighting all year for nothing. The more I earned, the more I paid. I wasn't getting ahead."
The trigger and the decision
Thomas discovered Paraguay through a YouTube video in 2024. He was initially skeptical — "it seemed too good to be true." He spent several months researching, reading forums, comparing it with Dubai and Georgia. Then he made a 10-day reconnaissance trip to Asunción in March 2025 — exactly as we recommend in our reconnaissance trip guide.
"The trip changed everything. Before, it was an abstract idea. On site, I met other French expatriates, I saw the neighborhoods, I tried the restaurants, I understood that it was a real possible life. And I met the team that would support me."
The action plan implemented
Upon his return, Thomas launched:
- Paraguayan tax residency (from €1,400) — started in April 2025
- US LLC in Wyoming — created in parallel to structure his international invoicing
- Mercury Bank US account — to receive payments from his clients
- Bi-currency bank account in Paraguay (USD + PYG)
- Paraguayan accounting at €30/month
Total cost of implementation: approximately €4,500 (residency + LLC + ancillary fees). Timeframe: 4 months between launch and full operability.
The situation today
Thomas lives in Asunción, in the Carmelitas neighborhood, in a two-bedroom apartment with a pool for 800 USD/month. He still invoices his European clients, but now through his US LLC. Here is his new tax calculation:
| Item | Annual amount |
|---|---|
| Turnover (US LLC) | €120,000 |
| US federal tax (non-resident, no US trade) | €0 |
| Paraguayan tax (foreign source income) | €0 |
| LLC fees + PY accounting | ~€1,500 |
| TOTAL levies and fees | ~€1,500 |
| Net in pocket | ~€118,500 |
Annual savings vs. France: ~€59,500. And Thomas has a cost of living 3 times lower than in Lyon — his total monthly budget in Asunción is about 2,200 USD for comfort equivalent to a Lyon two-bedroom apartment at €2,800/month. Over the year, the overall savings (taxation + cost of living) exceed €80,000 per year.
"I earn the same turnover as before, but I keep double. And I spend half as much. Mathematically, it's as if I had quadrupled my income. Except I work less because I no longer need to chase after every assignment."
Portrait #2: Caroline and Marco, 36 and 47, directors of a French SME
Initial situation in France
Caroline and Marc jointly run a B2B consulting firm based in Bordeaux, specializing in the digital transformation of industrial companies. Their company employs 6 people and generates a turnover of €850,000/year, with a net profit before executive remuneration of approximately €400,000.
Their asset situation:
- Main house in Bordeaux (value ~€1.2 M, paid off)
- Second home in Médoc (value ~€800,000, paid off)
- Rental investments (3 apartments in Bordeaux, cumulative value ~€900,000)
- Financial portfolio (~€600,000)
- Net real estate assets: ~€2.9 M → subject to IFI
Their annual tax burden:
| Item | Annual amount |
|---|---|
| Corporate tax (IS) (200,000 € profit after remuneration) | ~€50,000 |
| Self-employed social contributions (Caroline and Marc) | ~€80,000 |
| Income tax on their remuneration (200,000 € for both) | ~€55,000 |
| PFU on dividends and capital income | ~€25,000 |
| IFI (on 2.9 M€ of real estate) | ~€12,000 |
| Property and local taxes | ~€15,000 |
| TOTAL annual levies | ~€237,000 |
More than €230,000 in taxes per year. And their main concern was not even this figure — it was the inheritance for their two children. With French inheritance taxes, they knew that half of their assets would go to taxes upon their death.
The trigger and the decision
"We had always considered expatriation, but without knowing where. The Emirates seemed artificial, Switzerland too expensive, Portugal losing its tax appeal. When our advisor told us about Paraguay, we laughed at first. Then we did the math."
Caroline and Marc made two trips to Paraguay (one for reconnaissance, a second to finalize). They met our team, visited properties, and spoke with other French expatriates already settled there.
The action plan implemented
Their transition was more complex than a freelancer's, as it involved the sale or restructuring of their French business. The plan:
- Sale of the French company to their two executive associates (takeover over 5 years with earn-out)
- Sale of the second home and 2 rental apartments before departure
- Rental of the main residence and the last apartment
- Paraguayan tax residence for both (€5,000 for the couple)
- Creation of a Paraguayan holding company to structure their financial assets
- Paraguayan SRL for their new international consulting activities
- US LLC for invoicing European clients
- Purchase of an apartment in Asunción (200,000 USD for a large three-bedroom in Villa Morra)
The situation today
18 months after their move, Caroline and Marc continue their consulting assignments — reduced in volume but well-paid — from Paraguay. Their current annual income is approximately €250,000 (a little less than in France because they voluntarily eased off).
| Item | Annual amount |
|---|---|
| Consulting income (US LLC) | €0 tax (foreign source) |
| Rental income Paraguay | 10% IRACIS on small amount |
| Rental income France (main residence rented out) | ~€22,000 (French non-resident tax) |
| Dividends from international portfolio | €0 in Paraguay |
| LLC + SRL + PY accounting fees | ~€3,000 |
| TOTAL levies | ~€25,000 |
Annual savings vs. France: ~€210,000. And the cost of living in Asunción for a couple with no dependent children is approximately 3,500 USD/month for a premium lifestyle — less than half of their Bordeaux budget.
But the real gain is not annual. It is asset-related. Their total assets (estimated at €4 M with the financial portfolio that continued to grow) are now beyond the reach of French inheritance taxes. Upon their death, their two children will inherit almost all of it — versus approximately 50% they would have received if they had stayed in France. This is an asset saving of approximately 1.5 to 2 million euros for the next generation.
"We divided our annual taxes by 10. But the most important thing is that we secured the future of our children. When you see what France takes on successions, you wonder why we waited so long."
Portrait #3: Étienne, 29, content creator and crypto trader
Initial situation in Belgium
Étienne is a young Belgian entrepreneur with a hybrid profile: a YouTube/Twitch content creator focusing on cryptocurrencies (45,000 YouTube subscribers, monetized Twitch partnerships) and an active crypto trader managing his personal portfolio.
His income in Belgium was a fiscal and declarative nightmare:
- Content income (AdSense, sponsorships): ~€60,000/year, declared as professional income
- Crypto trading capital gains: ~€80,000/year, in a tax grey area (risk of reclassification as professional income taxed at 50%)
- Self-employed social security contributions: ~€12,000/year
- Income tax (IPP): ~€35,000/year
- Constant stress about the tax qualification of his crypto gains
Total annual levies: ~€47,000. But above all, Étienne lived in constant fear of a tax audit that would reclassify his crypto gains as professional income, which would have increased the total to over €80,000 per year.
The trigger and the decision
Étienne discovered Paraguay through the French-speaking crypto community. Several creators he followed had already made the move. "The trigger was not so much the tax savings as the stress. I wanted to stop being afraid of the Belgian tax authorities at the end of each year."
Being young and single, with no children, no real estate, no heavy ties, Étienne had the simplest profile to expatriate. A month after his reconnaissance trip, he had made his decision.
The action plan implemented
- Deregistration from the Belgian national register at his municipality
- Paraguayan tax residency (from €1,400)
- US LLC (Wyoming) to structure his content income
- Mercury US account to receive AdSense and sponsorships
- Paraguayan bank account for local expenses
- Crypto trading in his own name (Paraguayan resident, foreign capital gains = 0%)
- Paraguayan accounting at €30/month including crypto reporting (Resolution 47/2026)
The situation today
One year after settling in, Étienne lives in a modern studio in Villa Morra for 600 USD/month. He continues his YouTube channel and trading activity. His income has even increased thanks to the absence of stress and the time freed up by tax simplification.
| Item | Annual amount |
|---|---|
| YouTube income (US LLC) | ~€70,000, 0% tax |
| Crypto capital gains (own name) | ~€100,000, 0% tax |
| Structure fees (LLC + accounting) | ~€1,800 |
| TOTAL levies and fees | ~€1,800 |
| Net in pocket | ~€168,200 |
Tax division ratio: ~26x. Étienne now pays €1,800 in structural fees compared to €47,000 in annual levies in Belgium — on an income that has increased in the meantime. And the risk of tax reclassification has completely disappeared.
"In the morning, I trade peacefully with my coffee by the pool. In the afternoon, I shoot my videos. In the evening, I go out with other French expatriates. I earn more, I pay less, I live better, and I sleep better. My only regret is not having left two years earlier."
Commonalities of the three portraits
Three very different profiles — a 38-year-old freelancer, a couple of entrepreneurs over 50, a young 29-year-old content creator. But striking commonalities:
1. A rational, not impulsive decision
None of our clients made a decision on a whim. All spent several months researching, reading guides, making comparative calculations and — above all — taking a reconnaissance trip before starting. Expatriation to Paraguay is a project that needs preparation, not an improvised escape.
2. Professional support
All sought help from our team to structure their transition. They could have tried to do everything themselves — it's technically possible — but they chose the path of efficiency and legal security. As explained in our guide to fatal errors, improvisation in this type of project is costly.
3. A real change in lifestyle
None of our clients live as "fictitious residents" in Paraguay. All are genuinely settled there — permanent housing, local social life, gradual integration. This is what makes their tax status solid and undeniable.
4. No regrets
Without exception, none of our clients wished to go back. The initial difficulties (learning Spanish, cultural adaptation, distance from family) are largely compensated by the financial, tax, and quality of life benefits.
And you? What could be your calculation?
Do your own honest simulation. Take your annual income, add up all levies (income tax, social security contributions, social levies, various taxes, IFI if applicable). Divide this total by your gross income to get your real levy rate. For an average affluent French or Belgian person, this rate often exceeds 45 to 55%.
Then, imagine this rate at 0%. Not 10%. Not 5%. Zero. This is what Paraguay legally offers to tax residents whose income is from foreign sources. And calculate what this difference represents over 5, 10, 20 years.
If the result exceeds the initial investment of €1,400 for residency (and this is necessarily the case as soon as your income exceeds €30,000/year), the question is no longer "should I do it" but "what is holding me back from acting".
The complete ecosystem to start your transformation
- Paraguayan Tax Residency (from €1,400, 3 months): the essential foundation
- Dual-Currency Bank Account: dollars and guaranies to manage all your financial flows
- Paraguayan SRL (€1,500, 1 week): to structure a local business activity
- US LLC: for international invoicing and access to the best platforms (Stripe, Mercury)
- Accounting (€30/month): Paraguayan tax compliance and crypto reporting
- Driver's License (€150): daily mobility
Conclusion: Will your turn come in 2026?
Thomas, Caroline, and Marc, Étienne — these are real people (under assumed names) who took the plunge and are now living radically transformed lives. Their profiles are different, but their clear-sightedness was the same: at some point, they honestly did the math and understood that staying in their home country meant leaving hundreds of thousands of euros to a state without useful consideration.
Paraguay is not a magic solution. It is not an escape. It is a rational decision for asset protection and life optimization. Those who take the leap don't boast — they simply live better, more freely, with more means and less stress.
And every month you wait, several thousand euros go towards taxes instead of staying in your assets. The question is not whether you should act — it's when. And the rational answer is: as soon as possible.
Do you want to write your own portrait a year from now? Contact our team for a personalized, confidential, and no-obligation analysis. We will study your situation, do the calculations with you, and give you an honest answer about what Paraguay can offer you. The first step starts here.