Quebec Entrepreneur in Paraguay: How Marc-Antoine Went From 53% to 0% Taxes in 2026
"In Quebec, I was giving 53% of what I earned to the government. Fifty-three percent. My accountant told me: 'Marc-Antoine, you work until July 15th every year just to pay your taxes.' I said to myself: that's enough."
Marc-Antoine Bergeron is 38 years old. He is a Quebec entrepreneur, founder of a digital marketing agency that bills clients in Canada, the United States, and Europe. When he moved to Asunción in 2024, he didn't know a word of Spanish and had never set foot in South America. Two years later, he manages his agency from the Villa Morra neighborhood, his income has increased by 40%, and he keeps all of what he earns thanks to Paraguayan territorial taxation.
Here is his journey — reconstructed from a representative profile of Quebec entrepreneurs who have moved to Paraguay. Names and some details have been changed to protect privacy.
The Situation in Quebec: The Tightest Tax Squeeze on the Continent
The Quebec Tax Context
Quebec has the highest taxes in North America. For an entrepreneur like Marc-Antoine with CAD 220,000 (~€150,000) in income:
- Canadian Federal Income Tax: Progressive scale 15-33%. Marginal rate 33% beyond CAD 235,675.
- Quebec Provincial Income Tax: Progressive scale 14-25.75%. Added to federal tax.
- Combined Marginal Rate: 53.31% beyond CAD 235,675 (the highest in North America)
- QPP (Quebec Pension Plan) Contributions: ~6.4% employee (capped)
- QPIP (Quebec Parental Insurance Plan): ~0.494% self-employed
- Employment Insurance: ~1.4% (self-employed optional but mandatory for employers)
- GST (federal) + QST (provincial): 5% + 9.975% = 14.975% combined
- School Tax: based on property value
- Health Services Fund Contribution: ~1.65% for self-employed individuals
Marc-Antoine's Calculation
With CAD 220,000 in agency revenue and self-employed status:
| Item | Amount (CAD) |
|---|---|
| Gross Revenue | $220,000 |
| Deductible Expenses (subcontractors, software, office) | -$50,000 |
| Net Taxable Income | $170,000 |
| Federal Tax | ~$33,000 |
| Quebec Provincial Tax | ~$28,000 |
| QPP + QPIP + HSF | ~$10,000 |
| Total Deductions | ~$71,000 (~€48,000) |
| Effective Rate | ~41.8% of net income |
Of the CAD 220,000 gross, after expenses and taxes, Marc-Antoine was left with approximately CAD 99,000 (~€67,000). In Montreal, with rent of CAD 2,200/month (~€1,500), current expenses, and the high cost of living, he barely had CAD 20,000-30,000 in annual savings.
Frustrations Beyond the Numbers
Marc-Antoine describes three major frustrations that pushed him to leave:
- Tax Visibility: "Since quarterly provisional payments, you see the money leave four times a year. It's not like in France with monthly PAS, but it's still brutal. You get a check for $180,000 and you keep $99,000 of it."
- Entrepreneurial Glass Ceiling: "Every time you want to hire, invest, take a risk, you remember that 50 cents of every additional dollar of profit goes to the government. It kills the desire to grow."
- Winter: "Six months of cold, slush, grayness. When you're self-employed and you work from home, Quebec winters are depressing. I needed sun."
Discovering Paraguay
The Journey
Marc-Antoine first explored the classic options for Quebeckers looking to optimize their taxation:
- Incorporating as a joint-stock company (SPA) in Canada: Federal + provincial corporate tax on SPA profits (~15-26% depending on income), but double taxation upon dividend distribution. Limited optimization.
- Moving to Ontario or Alberta: no provincial health tax in Alberta, lower provincial marginal rate. But still 48-50% combined marginal. And still the cold.
- Portugal NHR: considered but regime changed in 2024. Too many French speakers, too much tax tourism, too much media attention.
- Dubai: no French speakers, high cost of living, very different culture. "I'm a Quebecker, not an Emirati."
- Paraguay: discovered via a French-speaking expatriation podcast. "A guy was talking about 0% on foreign income, residency for €2,500, no cost of living. I thought he was exaggerating. I did my research. He wasn't."
The Scouting Trip
Marc-Antoine took a 10-day scouting trip to Asunción in March 2024:
- Visited the Villa Morra, Carmelitas, Manorá neighborhoods
- Met other expatriates (including some Quebeckers already settled)
- Visited apartments available for rent
- Met the team from paraguay-resident.com.py to understand the residency process
- Tested the internet (300 Mbps fiber in the Airbnb he rented)
- Ate asado and drank tereré
His verdict after the trip: "It's not Old Montreal. It's not sexy on Instagram. But it's functional, it's affordable, people are welcoming, and it's 28 degrees in March. I left Montreal at -15. The contrast settled the matter."
Settling In: The First 3 Months
The Residency Process
Marc-Antoine initiated his Paraguayan tax residency in April 2024:
- Documents prepared from Montreal (passport, apostilled Canadian criminal record, birth certificate)
- Arrived in Asunción early May 2024
- Residency process: €2,500, full support
- Paraguayan cédula obtained in July 2024
- Tax RUC obtained shortly thereafter
The Tax Structure
- American LLC created in Wyoming: all clients (Canada, USA, Europe) billed through the LLC
- Mercury Bank: US business account to receive payments
- Stripe: online invoicing
- Wise Business: international transfers and subcontractor payments
- Paraguayan dual-currency bank account: for daily life
- Paraguayan accounting: €30/month
The Canadian Tax Break
Canada is known for being one of the most aggressive countries regarding tax residency. To cleanly sever tax ties:
- Marc-Antoine terminated his lease in Montreal
- Closed his current Canadian bank accounts (kept a savings account to facilitate transitions)
- Sold his car
- Suspended his RAMQ card (Quebec health insurance)
- Informed the CRA (Canada Revenue Agency) and Revenu Québec of his departure
- Completed Form NR73 (Determination of Residency Status) with the CRA
- Retained his Canadian citizenship (no impact on tax residency)
Important point for Quebeckers: Canada uses a residential ties test, not a simple 183-day test. As long as you have available housing in Canada, a spouse resident in Canada, or dependent children in Canada, the CRA may consider you a Canadian tax resident. Marc-Antoine severed all ties to secure his position.
The Apartment and Daily Life
Marc-Antoine rented a furnished 1-bedroom apartment in the Villa Morra neighborhood:
- Rent: 550 USD/month (compared to CAD 2,200/month in Montreal)
- 300 Mbps fiber internet: 45 USD/month
- Monthly groceries: ~200 USD
- Outings/restaurants: ~150 USD/month
- Transportation (Bolt): ~50 USD/month
- Total monthly budget: ~1,100-1,300 USD (~€1,000-1,200)
Montreal comparison: equivalent budget ~CAD 3,500-4,500/month. Monthly savings on cost of living alone: ~CAD 2,000-2,500/month (~€1,400-1,700).
Results After 2 Years
Financial Assessment
| Item | Quebec (before) | Paraguay (after) |
|---|---|---|
| Gross agency revenue | CAD 220,000 (~€150,000) | CAD 310,000 (~€210,000) — 40% growth |
| Operating expenses | CAD 50,000 | CAD 65,000 (more subcontractors to support growth) |
| Taxes + contributions | CAD 71,000 (~€48,000) | ~CAD 0 (foreign income + US LLC) |
| PY structural costs | — | ~CAD 5,500 (~€3,800) (LLC + PY accountant + Mercury) |
| Annual cost of living | ~CAD 55,000 | ~CAD 18,000 (~€12,500) |
| Annual disposable net income | ~CAD 44,000 (~€30,000) | ~CAD 221,500 (~€150,000) |
| Annual savings | ~CAD 20,000-30,000 | ~CAD 150,000-170,000 |
Marc-Antoine now saves 5 to 7 times more than in Quebec. In two years in Paraguay, he has put aside more than he accumulated in 8 years of self-employment in Montreal.
Business Growth
Paradoxically, his business has grown by 40% since he left Quebec. Reasons:
- More Time: "In Quebec, I spent 2-3 hours a week on my accounting, my installments, my GST/QST. In Paraguay, it's zero. My accountant does everything for $30/month."
- More Energy: "The sun, the pace of life, no commute in the slush at -20. I'm more productive, period."
- More Money to Reinvest: "The money I gave to the government, I put it into marketing, tools, subcontractors. My agency grows because I can reinvest."
- Unchanged Clientele: "My clients are in Canada and the US. They don't care if I'm in Montreal or Asunción. We do everything by Zoom and Slack. I haven't even told some clients I moved."
Daily Life in Asunción
Marc-Antoine shares his impressions after two years:
- Spanish: "I took private lessons 3 hours/week for 6 months. My Spanish is functional now. Not perfect, but I manage at the supermarket, in restaurants, at the doctor's. A Quebecker who speaks French and English learns Spanish quickly — it's Latin like French."
- Food: "The meat here is incredible. Quality beef for almost nothing. However, imported products (European cheese, French wines) are expensive. I learned to eat local and it's perfect."
- Social Life: "I met other Quebeckers here — there are more than you'd think. The French-speaking community is small but close-knit. I also make Paraguayan and Argentinian friends. People are warm."
- Climate: "It's the opposite of Quebec. Summer here (December-February) is hot and humid — 35-40 degrees, it's tough. But winter (June-August) is perfect: 15-22 degrees, sun every day. It's like an eternal autumn. The deal is: in Quebec you endure 6 months of cold, here you endure 3 months of heat. I'll take the heat."
- Safety: "I live in Villa Morra, I walk around at night, I take Bolts everywhere. I've never had a problem. It's not North Montreal, but it's not downtown Montreal either. It's fine."
- Outings: "Buenos Aires is a 1.5-hour flight away. I go there once a month for a weekend. Iguazú Falls are a 5-hour drive away. Brazil is nearby. There are things to do. It's not the Plateau Mont-Royal, but it's not boring either."
Challenges and Surprises
What Was Harder Than Expected
- Paraguayan Administration: "It's not Quebec. The queues, the paperwork, the stamps — it's a culture shock. But with the right support, it's manageable. Alone, I would have been stuck."
- Distance from Family: "My parents are in Quebec. The time difference is only 1-2 hours (almost the same time zone), but the physical distance is real. I go back 2-3 times a year (making sure to spend less than 183 days in Canada)."
- Guarani: "Spanish is fine. But at the market, people speak Guarani among themselves. You don't understand anything. It's not a problem in expat neighborhoods, but it's disorienting."
- January-February Heat: "I wasn't expecting 40 degrees with 80% humidity. The first two summers, I planned my trips during that period. Buenos Aires in February is perfect."
What Was Easier Than Expected
- Internet: "I was afraid the internet would be bad. In fact, I have fiber at 300 Mbps for $45 a month. It's better than what I had in Montreal with Bell. My Zoom calls go through perfectly."
- Banking System: "Between Mercury, Wise, and my Paraguayan account, I've never had a problem receiving or sending money. It's smoother than the Canadian system for international transfers."
- Keeping Clients: "Zero clients lost. My clients want results, not a postal address. My US LLC is even more credible for my American clients than a Canadian company."
- Spanish: "As a French speaker, Spanish is learned quickly. In 6 months, I was managing. In 1 year, I could have normal conversations. Quebeckers have a real linguistic advantage."
Lessons for Quebeckers Considering Paraguay
Quebec Specifics to Consider
- The Residential Ties Test (CRA): Canada does not rely on the 183-day rule. The CRA looks at your significant ties (housing, spouse, dependents in Canada). Sever all ties to avoid reclassification. Form NR73 is your friend — have it validated by a tax specialist in Canadian international mobility.
- Instalment Payments: Stop installment payments to the CRA and Revenu Québec as soon as you are no longer a resident. Your last return covers the period from January 1st to your departure date.
- RRSP/TFSA: Your RRSPs (Registered Retirement Savings Plans) can be maintained as a non-resident. Withdrawals are subject to Canadian withholding tax (25% for non-residents, unless otherwise provided by convention). The TFSA (Tax-Free Savings Account) loses its tax advantage as a non-resident (income generated in the TFSA could be taxed). Consult a specialized financial advisor.
- Health Insurance: RAMQ (Régie de l'Assurance Maladie du Québec) coverage ceases after your departure. Plan for international or Paraguayan health insurance. Cost in Paraguay: 60-200 USD/month (private) vs $0 RAMQ in Quebec (but funded by your massive taxes).
- Canadian Passport: You retain your Canadian citizenship and passport. No impact. And after 3 years in Paraguay, you can obtain Paraguayan nationality with dual nationality = two passports.
- Tax Treaties: There is a Canada-Paraguay tax treaty (limited). Dividends from Canadian sources paid to a non-resident are subject to withholding tax (15% by convention vs 25% internal rate). If you keep Canadian investments, check the implications.
Marc-Antoine's Advice
- "Go on a reconnaissance trip." "Come for 10-14 days. Visit neighborhoods, eat in restaurants, test the internet, meet expats. You can't decide based on a podcast."
- "Sever your tax ties properly." "The CRA isn't stupid. If you keep your condo in Montreal 'just in case,' you're still a Canadian tax resident. Sell or rent it, and cut ties."
- "Learn Spanish." "We're Québécois, we speak French. Spanish is in the same family. After 6 months of lessons, you'll be able to get by. It's the best time investment I've made."
- "Plan your returns to Canada." "I go back to see my family 2-3 times a year, 2-3 weeks each time. That's 6-9 weeks a year in Canada. Well under 183 days. I document everything."
- "Prepare for culture shock." "Paraguay isn't Quebec. The bureaucracy is different, the pace is different, the standards are different. Accept it. You'll adapt. Québécois are resilient."
- "Get support." "I never would have done this alone. The paraguay-resident team guided me on everything: residency, LLC, banking, accounting. It's the best €2,500 I've ever spent."
The Personal Balance Sheet
Marc-Antoine summarizes his experience in three sentences:
- Financially: "I now keep 95% of what I earn, instead of 45%. In two years, I've built up savings that I never would have accumulated in 10 years in Quebec. My wealth is growing exponentially."
- Professionally: "My business has grown by 40%. I'm more motivated, more productive, more ambitious. When you keep every dollar you earn, you want to earn more. Paraguay has reignited my entrepreneurial spirit."
- Personally: "I live in the sun, I eat well, I don't stress about my taxes. My quality of life is objectively superior. The only thing I miss is poutine. And winters — no, I don't miss those."
The Numbers Over 5 Years
| 5-year Projection | Quebec Scenario | Paraguay Scenario |
|---|---|---|
| Cumulative Income (5 years, 10%/year growth) | ~1,340,000 CAD | ~1,890,000 CAD |
| Cumulative Taxes | ~440,000 CAD | ~0 CAD |
| Cumulative Cost of Living | ~275,000 CAD | ~90,000 CAD |
| Cumulative Structural Costs | ~25,000 CAD | ~27,500 CAD |
| Cumulative Savings over 5 years | ~275,000 CAD (~185,000 €) | ~1,400,000 CAD (~950,000 €) |
5-year differential: +1,125,000 CAD (~765,000 €). In five years in Paraguay, Marc-Antoine will have accumulated over a million additional Canadian dollars in savings compared to the Quebec scenario.
Conclusion
Marc-Antoine's story is that of hundreds of Québécois entrepreneurs who discover Paraguay every year. Quebec offers an exceptional quality of life—vibrant culture, spectacular nature, solid social system—but at the cost of the heaviest taxation on the continent (53.31% marginal). For a digital self-employed worker with international clients, this cost became irrational in 2026.
Paraguay offers the alternative: 0% on foreign income, cost of living 60-70% lower than Montreal, residency for €2,500, US LLC for North American credibility, sunny climate 300+ days a year, growing Francophone community, and Buenos Aires a 1.5-hour flight away for weekends.
Marc-Antoine's calculation has become the calculation of his generation: are poutine and winters worth $71,000 in taxes per year? For him, the answer is no. For an additional +150,000 CAD in annual savings, he chose the sun, tereré, and fiscal freedom.
Are you a Quebec entrepreneur considering Paraguay? Contact our team for a personalized transition plan: Paraguayan residency, US LLC, CRA/Revenu Québec tax cutoff, RRSP transfer, coordination with your Canadian accountant. The complete process takes 3-6 months. Your next fiscal summer starts here—and this one is summer all year round.