Golden Visas in Paraguay, Panama, Uruguay, Colombia and El Salvador in 2026: What Changed

In 2026, skipping Paraguay’s standard two-year wait for residency by investment is only possible through the new investor passport launched in April 2026 — the old “$5,000 in a bank account” shortcut to instant permanent residency no longer exists.

In short

• Paraguay and Panama have scrapped instant permanent residency: now it’s two years of temporary residency first, unless a large investment is made.
• Uruguay closed its cheap route to the tax exemption as of January 1, 2026 — what’s left is time (183+ days), real estate at $2 million, or $100,000 into a fund annually.
• In Colombia, the rentier visa has not counted toward residency or citizenship since 2022 — effectively downgraded to a visitor visa.
• El Salvador moved the opposite way, cutting the presence threshold for temporary residency from 9 months to 90 days a year.
• Residency in Latin America doesn’t cancel tax liability in Germany, Austria, or Switzerland as long as the center of life interests stays there.

Paraguay: temporary residency and the new investor passport

The scheme involving a $5,000 bank statement that supposedly granted instant permanent residency in Paraguay no longer exists — that’s outdated information from a 2019 video. Since the 2022 migration law, Paraguay follows a different order: temporary residency is granted first for 2 years, and only afterward can permanent residency be requested.

According to available information, when moving from temporary to permanent residency, the applicant’s financial situation is reviewed. Applicants must confirm status in one of the fixed categories — retiree, self-employed, or entrepreneur — and this confirmation must match what was declared in the initial application. Actual physical presence in the country is checked separately: if, during the temporary residency period, the applicant did not enter Paraguay for longer than a year, permanent residency may be denied.

Actual physical presence in the country is checked separately: if, during the temporary residency period, the applicant did not enter Paraguay for longer than a year, permanent residency may be denied.

The second route is through capital, known as the investor passport. According to available information, this investment grants permanent residency directly, bypassing the two-year temporary stage. Four options are available:

• $70,000 (about €60,000) — investment in a manufacturing business creating at least 5 jobs;
• $200,000 (about €172,000) — placement in financial instruments for at least 2 years;
• $200,000 — purchase of income-generating real estate (not the property the investor lives in);
• $50,000 — investment in tourism, provided there’s a business plan that directly benefits the country.

Panama: Friendly Nations Visa and the qualified investor route

The Friendly Nations Visa in Panama, according to available information, no longer grants instant permanent residency — that option was removed. Temporary residency is now granted first for two years, and only then can a second application for permanent status be filed.

For the first stage, one of these is required: real estate or a fixed-term deposit of $200,000 (about €172,000), or an actual employment contract in Panama.

Obtaining permanent residency immediately, without the two-year intermediate stage, is only possible through the qualified investor visa. According to available information, the threshold for new construction has been raised to $300,000 (about €258,000) — the requirement was changed. For resale property that has already been used or rented out, the threshold is higher — starting at $500,000.

Qualified investor visa thresholds

Property type	Minimum amount
New construction	$300,000 (≈€258,000)
Resale (previously used) property	$500,000

Uruguay: the cheap entry route closes, three paths to tax exemption remain

As of January 1, 2026, Uruguay closed its former low-cost path to residency — the one that required cheaper real estate and just 60 days of presence per year in exchange for a tax exemption on foreign-sourced income. That scheme no longer applies to new applicants.

To get the 11-year exemption from tax on foreign income, applicants must now meet one of three conditions:

• be present in Uruguay for more than 183 days per year;
• buy real estate worth around $2,000,000 (roughly €1,700,000);
• invest $100,000 annually (about €86,000) in a government-recognized real estate fund.

The formula is the same one seen elsewhere in the region: either time or capital. The difference is that the old middle-ground option — a little time and a modest sum at once — has been removed in Uruguay.

The difference is that the old middle-ground option — a little time and a modest sum at once — has been removed in Uruguay.

Colombia and El Salvador: the rentier visa no longer counts, El Salvador eases requirements

In Colombia, since 2022 the rentier visa has effectively been downgraded to a visitor visa: time spent on it no longer counts toward residency or citizenship. The old scheme, where a stable income opened a direct path to status, no longer works — the country now follows the same “time or capital” formula as its neighbors.

El Salvador went the opposite direction. Previously, temporary residency required being in the country 9 months a year. According to available information, the threshold has been lowered to 90 days — the difference between three quarters of presence and one.

This doesn’t mean the region as a whole is moving toward looser rules. The idea that Latin America will follow Europe’s path of closing or raising the cost of golden visas remains a forecast, not a fact: El Salvador’s example shows requirements can move in the opposite direction too.

A worked example: which of the five countries fits a time-based or capital-based path

Consider a specific case: a 55-year-old applicant with roughly €150,000 in available capital, plus €20,000 in annual dividends. Previously, with that capital he might have been advised to buy property in Uruguay for around $400,000 (about €345,000) and stay in the country 60 days a year — enough for the tax exemption.

Now, for a new arrival, that tax-exemption scheme no longer works. If he becomes a resident of Uruguay, foreign dividends are taxed at 12% — about €2,400 a year, a sum the author of the calculation still considers acceptable.

The route through Paraguay’s investor passport isn’t fully closed either, but it’s not immediately accessible: the applicant is about €20,000 short of the real estate purchase required for that program.

In the end, out of all the options, only two are realistic: temporary residency in Paraguay with actual residence in the country, or residency in Uruguay with more than 183 days of presence per year. Both paths require the same thing — actually living in the chosen country, not just obtaining a document and leaving. With around €150,000 in capital and €20,000 in annual income, the question comes down not to money but to the time the applicant is willing to spend on the ground.

Both paths require the same thing — actually living in the chosen country, not just obtaining a document and leaving.

Tax liability in Germany, Austria and Switzerland doesn’t disappear automatically

Residency in Latin America by itself doesn’t end tax liability in Germany, Austria, or Switzerland. As long as a home country still has an apartment and the center of a person’s life interests remains there, tax on worldwide income is paid there — regardless of what status is obtained in Paraguay, Uruguay, or Panama.

For those holding a stake in a GmbH, this is especially sensitive: before moving, it’s worth calculating the exit tax (Wegzugssteuer) in advance — it can arise exactly at the moment tax residency changes, not later.

There’s a flip side too: someone who genuinely moves to live in one of these Latin American countries — rather than just obtaining a document for status — ends up in a noticeably stronger position with the tax authorities when it comes to proving the change of residency.

Frequently asked questions

Can the category (retiree, self-employed, entrepreneur) be changed when moving from temporary to permanent residency in Paraguay?

No, the status being confirmed must match what was declared in the initial temporary residency application. Switching categories between stages is not provided for, so the choice of status should be made with the knowledge that it will need to be reconfirmed two years later.

Can permanent residency in Panama be obtained without going through the two-year temporary residency stage?

Yes, but only through the qualified investor visa: for new construction the threshold is $300,000 (about €258,000), and for resale property that has already been used or rented out, it’s $500,000 or more. The Friendly Nations Visa no longer offers this option — it was removed, and that route now goes through two stages.

Is the exit tax (Wegzugssteuer) due on a change of residency even if a stake in a GmbH hasn’t been sold yet?

Yes, according to available information this tax can arise exactly at the moment tax residency changes, not later and not at the moment the stake is sold. So anyone holding a stake in a GmbH should calculate it in advance, before moving, rather than putting off the calculation until later.