Quick Answer
US citizens need an FBI background check (not state-level) for Paraguay residency. No visa required for entry—Americans can stay 90 days visa-free. The FBI check must be apostilled by the US Department of State in Washington DC. The US taxes citizens on worldwide income regardless of residency, but the Foreign Earned Income Exclusion can exclude up to $132,900 (2026) from US taxation.
Updated January 2026 | Source: Dirección General de Migraciones, IRS
Good News for Americans
Key Points for US Citizens
Visa-Free Entry
US passport holders can enter Paraguay for 90 days without a visa. This is sufficient time to complete the entire application process.
FBI Background Check Required
You must obtain an FBI Identity History Summary (not a state check). Request at fbi.gov, allow 2-4 weeks, then apostille through the US State Department.
US Tax Considerations
The US taxes citizens on worldwide income regardless of residency. Paraguay residency provides benefits, but doesn't eliminate US tax obligations. Consult a tax professional.
FBI Identity History Summary: Step-by-Step
Request FBI Background Check
Apply online at FBI.gov ($18) or through an FBI-approved channeler ($30-60). You'll need fingerprints on an FD-258 card—available at UPS Store, local police stations, or private fingerprinting services. Electronic submissions often complete same-day.
Apostille at US Department of State
Only the US Department of State in Washington DC can apostille FBI documents. State Secretary of State offices cannot. Submit Form DS-4194 with $8 fee. Standard processing: 6-8 weeks. Expedited: 2-3 days (additional fee). Mail only—no walk-in service.
Use an Expediting Service (Optional)
Services like VisaDC, Monument Visa, or Elite Documents handle everything for $75-150 in service fees. Total turnaround: 7-14 days with expedited processing. Worth it if you're on a tight timeline.
Common Mistake
Birth Certificate Apostille by State
Your birth certificate must be apostilled in the state where it was issued, not where you currently live.
| State | Authority | Cost | Timeline |
|---|---|---|---|
| California | Secretary of State, Sacramento | $20 | 2-3 days |
| Texas | Secretary of State | $15 | 1-2 weeks |
| New York | Dept of State (after County Clerk) | $10 | 3-5 days |
| Florida | Secretary of State | $10 | 1-2 days |
| Other States | Secretary of State | $5-20 | 1-5 days |
New York Residents
US Tax Obligations While Abroad
US citizens must file taxes regardless of where they live. However, the Foreign Earned Income Exclusion (FEIE) can significantly reduce your tax burden.
FEIE 2026: Exclude Up to $132,900
- 2025: $130,000 per person exclusion
- 2026: $132,900 per person exclusion
- Married filing jointly: Both can claim = $260,000+ excluded
Physical Presence Test
Be physically present in foreign countries for 330 full days during any 12-month period. Days don't need to be consecutive.
Bona Fide Residence Test
Be a bona fide resident of a foreign country for an entire tax year (January 1 - December 31).
You Must Still File
Other US Reporting Requirements
FBAR (FinCEN Form 114)
Required if your foreign accounts exceed $10,000 at any point during the year. File electronically by April 15. Penalties for non-filing are severe—up to $100,000 or 50% of account balance.
FATCA (Form 8938)
Required for higher thresholds ($200K-400K depending on filing status and whether living abroad). Filed with your tax return.
Social Security
You can collect SS benefits while living in Paraguay. Direct deposit to a US bank account is recommended. Paraguay has no Totalization Agreement with the US, so work in Paraguay won't count toward US Social Security credits.
Medicare
Medicare does NOT cover care outside the US. Many expats maintain Part B ($174.70/month) for US visits. Private insurance in Paraguay: $150-300/month with typically better coverage for local care.
FAQ
Do US citizens need a visa for Paraguay?
No. US citizens can enter Paraguay visa-free for 90 days. This is enough time to complete the residency application process.
What background check do I need?
You need an FBI Identity History Summary, NOT a state background check. Request it at fbi.gov ($18) and get it apostilled by the US State Department.
Will I still pay US taxes?
The US taxes citizens on worldwide income regardless of residency. However, you may qualify for the Foreign Earned Income Exclusion (FEIE) or Foreign Tax Credit. Consult a US tax professional.
Can I renounce US citizenship after getting Paraguay citizenship?
Yes, Paraguay allows dual citizenship. After obtaining Paraguayan citizenship (3+ years of permanent residency), you could renounce US citizenship if desired.
Do I need an FBI check or state background check?
FBI Identity History Summary is required. State-level checks are not accepted by Paraguayan immigration. Apply at FBI.gov for $18 or through an approved channeler for $30-60.
Where do I get the apostille for my FBI check?
Only the US Department of State in Washington DC can apostille FBI documents. Submit Form DS-4194 with $8 fee. Processing takes 6-8 weeks standard or 2-3 days expedited. State Secretary of State offices cannot apostille federal documents.
Do I still pay US taxes with Paraguay residency?
US citizens must file taxes worldwide. However, the Foreign Earned Income Exclusion (FEIE) lets you exclude $132,900 (2026) of foreign earned income. You must pass the Physical Presence Test (330 days abroad) or Bona Fide Residence Test and file Form 2555.
What is FBAR and do I need to file it?
FBAR (FinCEN Form 114) is required if your foreign financial accounts exceed $10,000 at any point during the year. File electronically by April 15. Penalties for non-filing can be severe—up to $100,000 or 50% of account balance.
Can I collect Social Security while living in Paraguay?
Yes. You can receive Social Security benefits in Paraguay. Direct deposit to a US bank account is recommended. Paraguay has no Totalization Agreement with the US, so your work in Paraguay won't count toward US Social Security credits.
What about Medicare coverage in Paraguay?
Medicare does not cover healthcare outside the United States. Many expats keep Part B active ($174.70/month) for US visits. Private health insurance in Paraguay costs $150-300/month and typically offers better coverage for local care.