Foreign residency applications in Paraguay surged 85% in the first quarter of 2026, reaching 18,071 — nearly double the 9,760 recorded in the same period of 2025 — according to the country's National Migration Directorate. The boom is driven largely by Paraguay's flat "10-10-10" tax system (10% VAT, personal income tax, and corporate income tax), energy costs up to 2.8 times cheaper than in neighbouring Brazil, and a newly announced programme granting direct permanent residency to investors in the tourism, real estate, and financial sectors. Brazilians account for 64% of residencies issued, with many motivated by ideological opposition to the Lula government, though economists caution that Paraguay's low tax base limits public investment in infrastructure, health, and education, while labour informality stands at 62.5%.