Events around the globe are unfolding at a pace we haven’t seen in decades, and more and more of us are realizing the unprecedented uncertainty and risks.
COVID and the subsequent inflation are eroding the purchasing power of our pockets. The war in Ukraine has only accelerated this, sending prices of gasoline, gas, and electricity soaring to the moon.
At the same time, Europe is far from the US and China in innovation and is losing a competitive edge to China’s rising power in critical industries such as automotive.
Europe’s states are heavily indebted, and with an aging population, the tax burden on citizens will need to be increased. Undoubtedly, most European states will be unable to afford generous social systems, which will cause more social upheaval.
Politically, the world is more divided than ever, with the biggest military conflict in Europe since the end of the Second World War right next to our doors and the situation in the Middle East escalating every day.
Given the current global situation, many of us are left with pressing questions: What should I do? What should be my backup plan? How can I best protect myself and my family? It’s time to take control and start considering our personal backup plans.
One place in Latin America that attracted many Europeans as a backup plan is Paraguay. Since the Covid, more than 260000 people from Europe have obtained residencies in Paraguay, and many have decided to stay permanently. The biggest group is Germans, but we can hear all languages and see all nationalities in the buzzing Villa Morra part of Asuncion.
Why choose Paraguay as your backup plan?
Location
If world superpowers get into a significant international conflict, Paraguay is the exact country where you want to be. The country maintains friendly relationships with all its neighbors, as with world superpowers. Neither the country itself nor its neighbors possess nuclear weapons, and strategically located US military bases are not based in Paraguay. Therefore, there is only a tiny chance that Paraguay will become a major playground during the war.
Resources
Do you remember the shortage of basic things at the beginning of the COVID-19 pandemic? The disruption of supply chains caused by countries closing borders would be even worse during major conflicts. Paraguay, in this sense, is safe. It produces all its (renewable) electricity on its own, with a huge surplus being sold to Brazil every year. Vast drinking water reservoirs ensure agriculture can keep going even during an international crisis. The country is self-sufficient in producing the most essential foods, including top-notch beef, one of the leading export articles.
Political Stability
I’m sure you’ve heard in the news how Latin America can be unstable, with many revolutions and coups taking place all the time. While this is undoubtedly true for many countries, it is not for Paraguay. The main political party, Partido Colorado, has been in power for a long time and has won by a large margin in all free elections since the dictatorship ended. The party is dedicated to small government, low taxes, low regulations, promoting entrepreneurship, and creating opportunities. Presidents from the Colorado party are also well known to have positive attitudes towards immigration, particularly from European countries.
Cost of Living
It is relatively easy to imagine how easily our income stream can dry up during a crisis. In this situation, more than ever, it is essential to manage our living costs. The good news is that Paraguay is one of the cheapest countries in the world, approximately 50-70% cheaper than European countries. On top of that, if you have income generated from within Paraguay (there are a lot of business opportunities), you can use all your expenses (including delicious steaks in the restaurants and visits to massage saloons.) to offset this income for tax purposes.
Welcoming to foreigners
Yes, there are countries, such as New Zealand or Australia, that seem to be good choices for people to survive bad times, but who are these countries for? They are costly to live in, with high tax burdens and entry barriers to getting a residency visa. On the other hand, Paraguay is very welcoming to foreigners, and with the right partner like us, your residency process in Paraguay and the necessary paperwork will be very smooth. Don’t hesitate to contact us and learn everything we can do for you.