PARAGUAY: OPEN FOR BUSINESS

Paraguay does not have an offshore banking industry and it is not generally attractive for non-resident foreigners to open bank accounts in Paraguay. However there are two reasons why you might wish to do so:

1.  When applying for official residence, it is a requirement (unless you own property) that you deposit US$ 5000 or equivalent in an account in your name at a Paraguayan bank.

2.  If you want to hold Guarani (PYG) as an investment, you will need a bank account in Paraguay, as banks in other countries do not offer accounts in Paraguayan currency.

In either of these cases, it is possible for a foreigner to open an account in a Paraguayan bank, but it is difficult. The main obstacle is guidance sent out a few years ago by the Paraguayan Central Bank which specifically prohibits the local banks from opening accounts for persons who do not have a Paraguayan cedula.

The only bank we have found that has a solution to this problem is the Banco Nacional de Fomento, a state-owned bank. They will open a type of savings account called a Caja de Ahorro for non-residents. To open the account you will need to show up in person at their head office equipped with a bank reference and a copy of your passport. You will need to speak some Spanish, and you will need to supply a local address in Paraguay. It is not possible to open accounts in advance by correspondence.

Tags: Banco Nacional de Fomento, bank accounts, Guarani, non-residents, PYG