Paraguay's personal income tax (IRP) applies mainly to Paraguayan-source income, at rates of 8%, 9% and 10%, while Brazil taxes its residents on worldwide income at rates up to 27.5%. To stop being a Brazilian tax resident, you file the Comunicação and the Declaração de Saída Definitiva do País with the Receita Federal.
Two very different starting points
In Brazil, tax residents report income from Brazil and abroad. The Receita Federal explains that after a saída definitiva you are taxed only on Brazilian-source income and no longer report foreign income.
In Paraguay, the DNIT (Dirección Nacional de Ingresos Tributarios, formerly the SET) defines IRP as the tax on Paraguayan-source income of individuals. That is what people mean by a territorial system. A few rules matter here. Interest and other returns on money placed in Paraguay count as Paraguayan-source income (Art. 48), and in a non-binding ruling the DNIT found that an individual's dividends from a foreign company are not taxed under IRP. Companies follow different rules, so confirm how your income fits with an accountant.
Paraguay's personal income tax (IRP)
IRP was created by Law 6380/2019. According to the DNIT:
Income from personal services (salary, self-employment), progressive rates on net income, applied per bracket:
| Annual net income | Rate |
|---|---|
| Up to Gs. 50.000.000 | 8% |
| Gs. 50.000.001 to Gs. 150.000.000 | 9% |
| Above Gs. 150.000.000 | 10% |
- If your gross income from personal services is Gs. 80.000.000 or less in the year, you meet the filing obligations but do not pay the tax (Art. 69, Law 6380/2019).
- Capital income and gains: 8%.
- Due: annually, in March, through the Marangatu system.
To live and work formally you usually also register for a RUC (Paraguay's taxpayer ID).
Brazil's income tax (IRPF 2026)
Receita Federal monthly progressive table, from January 2026:
| Monthly tax base | Rate | Deduction |
|---|---|---|
| Up to R$ 2.428,80 | exempt | - |
| R$ 2.428,81 to R$ 2.826,65 | 7.5% | R$ 182,16 |
| R$ 2.826,66 to R$ 3.751,05 | 15% | R$ 394,16 |
| R$ 3.751,06 to R$ 4.664,68 | 22.5% | R$ 675,49 |
| Above R$ 4.664,68 | 27.5% | R$ 908,73 |
Since January 2026 (Law 15.270/2025), a reduction brings the tax to zero for taxable income up to R$ 5.000,00 a month, phasing out up to R$ 7.350,00.
For non-residents, the Receita lists 25% withholding on work and service income paid to non-residents and 15% on other Brazilian-source income. Pensions follow the progressive table.
Leaving Brazil for tax purposes: the saída definitiva
According to the Receita Federal, if you leave Brazil to live abroad you should:
- File the Comunicação de Saída Definitiva do País (CSDP). You can file it from your departure date until the last day of February of the following year.
- File the Declaração de Saída Definitiva do País (DSDP) in the year after you leave, by the same deadline as the annual income tax return, covering income, assets and debts for the part of the year you were still resident. For people who left in 2025, that window ran from 23 March to 29 May 2026. If you leave in 2026, you file in the 2027 window, which the Receita Federal announces early that year.
- Pay any tax due in a single payment by the filing deadline.
- Tell your Brazilian payers so they withhold tax as for a non-resident.
Good to know:
- If you left temporarily, the Receita treats you as a non-resident from the day after you complete 12 consecutive months abroad.
- The DSDP is required even if you did not file the communication, and it does not replace any earlier returns you still owe.
- What changes afterwards: Brazil taxes you only on Brazilian-source income, and you stop reporting foreign income.
Talk to an accountant in both countries. This is general information, not tax advice. The right way to leave Brazil and set up in Paraguay depends on your income, assets and situation.
Residency in Paraguay: the basics for Brazilians
Most people start with temporary residency from the Dirección Nacional de Migraciones, valid for up to 2 years, which does not require proof of economic solvency. The core documents, each apostilled, are:
- Birth certificate.
- Criminal record (from the country where you lived for the last 3 years), required from age 14. Teens aged 14 to 18 can be exempt when their country does not issue the certificate at that age, with a document showing that (Res. DNM 858/2024, Art. 2).
- Marriage certificate, if it applies (or divorce decree, or your spouse's death certificate).
Migraciones also asks for a valid ID or passport, proof of entry, an INTERPOL certificate and the Policía Nacional certificate for foreigners, among other items.
Good news: documents in Portuguese issued by Brazil do not need a Spanish translation (Migraciones checklist). The apostille is still required. Migraciones can still ask for a translation if a document is unclear, and other Brazilian documents, such as income proofs for permanent residency, may need one.
Later, for permanent residency, you prove solvency through one of the 12 categories in Resolution DNM 407/2026. See our full residency guide and our Resolution 407/2026 post.
For the step by step, with the documents to bring, entering with your RG and timelines, see Paraguay residency for Brazilians.
Frequently asked questions
Does Paraguay tax the income I receive from Brazil?
IRP applies to Paraguayan-source income. Because each type of income has its own rules, confirm your case with an accountant in both countries.
What is the top IRP rate?
10%, on the part of net personal services income above Gs. 150.000.000 a year. Capital gains pay 8%.
When is the Comunicação de Saída Definitiva due?
By the last day of February of the year after you leave. The Declaração follows, by the annual return deadline.
Do I need to translate my Brazilian documents?
Usually not. Portuguese documents issued by Brazil are exempt from translation, but they still need an apostille. Migraciones can still ask for a translation if a document is unclear, and other Brazilian documents, such as income proofs, may need one.
Do I need to prove income for temporary residency?
No. Proof of solvency is required when you switch to permanent residency.
Let's plan your move
If you want help with the documents and residency steps, book a free 15-minute call or send us a message. For the tax side, work with an accountant in Brazil and in Paraguay as well. Our FAQ covers more common questions. See also our permanent residency and soft landing services.
This article is general information and not legal or tax advice.
Official sources
- DNIT: IRP
- DNIT: IRP personal services guide (PDF)
- DNIT: Law 6380/2019
- DNIT: ruling on foreign-source dividends (PDF)
- Receita Federal: 2026 tax tables
- gov.br: Comunicar saída definitiva do país
- Receita Federal: Filing deadlines
- Receita Federal: How to file the DSDP
- Receita Federal: Saída definitiva overview
- Migraciones: temporary residency
- Migraciones: permanent residency
Last reviewed: 18 October 2026