Countries › Paraguay › Guide › 8. Immigration › Hiring foreign workers in Paraguay: no work permit, but residence first, equal pay and DNM notice

Hiring foreign workers in Paraguay: no work permit, but residence first, equal pay and DNM notice

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Last verified: 2026-10-28 · Status: Stable

Paraguay has no separate work permit or labor market test: a foreigner may work once they hold a residence card, and the provisional card issued on filing for temporary residence already allows work. The employer must inform the migration office when it employs an immigrant, apply the Labor Code on equal terms (pay below a national's for the same work on grounds of nationality is void, though Paraguayans are to be preferred all else being equal), and risks 150 daily minimum wages, PYG 17,561,550 (about US$2,993), per foreign worker without a residence card. Formal registration also matters later: IPS insured status or a registered contract is the employee's proof of income for permanent residence.

USD figures use PYG 5,868.31 per US dollar, the Banco Central del Paraguay reference quotation for 28 October 2026 (planilla de cotizaciones of that day). Conversions are for orientation only.

Key facts

Maximum increase in migration fines for repeat offences	50 %Ley 6984/2022 art. 90, as of 2022-10-18 · in force
Days to pay a DNM fine after notice	30 calendar daysLey 6984/2022 art. 93, as of 2022-10-18 · in force
Prescription of the DNM's action to collect a fine	2 yearsLey 6984/2022 art. 95, as of 2022-10-18 · in force
Separate work permit required in addition to residence	No textLey 6984/2022 art. 7 and 57, as of 2022-10-18 · in force

The rule

1. Residence is the work authorization. The migration law contains no separate work permit: a foreigner with residence authorized by the DNM may not be discriminated against for lawful work, and the residence categories themselves carry the right to work. The provisional (precaria) card issued once on filing for temporary residence, valid for 90 days, allows the holder to work and study; temporary residence is granted to carry on a lawful activity; spontaneous or occasional residence covers occasional activities such as transferred managers and technicians; and Mercosur residents may work as employees or on their own account on the same terms as nationals. Work already done while irregular keeps its acquired rights.
Cost to do it: The employee's residence fee: temporary PYG 2,926,925 (about US$499), Mercosur PYG 2,341,540 (about US$399), occasional PYG 936,616 (about US$160). The law does not say who pays; many employers reimburse it.
Example: A Paraguayan S.A. hiring a Colombian engineer can put them on payroll as soon as the Mercosur residence card is issued for PYG 2,341,540. / About US$399 for a Mercosur national, about US$499 for others.Ley Nº 6984/2022 De Migraciones; Ley Nº 3578/2008, Ley 6984 art. 7, 45, 46 and 57; Mercosur agreement art. 8 and 9, 2022-10-17 official text · verified 2026-10-28

2. Employer duties under the migration law. The employer must inform the DNM when it employs an immigrant and must comply with labor law whatever the immigrant's migration status. The law's guiding principles guarantee decent work and fair pay regardless of migration status and require employers to comply with labor rules whether or not the immigrant is regular. The DNM can inspect places where foreigners live and work to record infringements, and foreign residents who earn income must pay the applicable taxes.
Cost to do it: No fee for the notice; the law does not set a form or deadline for it.
Example: On hiring a Spanish analyst, the HR team sends the DNM a note with the worker's identity, residence card number and position, and keeps proof of filing. / No cost beyond administration.Ley Nº 6984/2022 De Migraciones, Art. 4 num. 12, 7, 18 and 79 num. 20, 2022-10-17 official text · verified 2026-10-28

3. Fine for hiring without a residence card. The law fines the hiring of foreigners who do not hold a residence card at 150 jornales per irregular worker, after an administrative proceeding with due process. The provision sits in the chapter on sanctions to international transport companies, which is a point to raise in any proceeding, but it is drafted generally and no other article covers employers. Repeat offences raise the fine by up to 50 percent; fines are graded by harm, seriousness and recidivism, are imposed by the DNM, must be paid within 30 calendar days of notice, can be enforced through executive proceedings in the civil courts of Asunción once final, and the collection action prescribes after 2 years.
Cost to do it: PYG 17,561,550 (about US$2,993) per worker; up to PYG 26,342,325 (about US$4,489) with the 50 percent repeat offence increase.
Example: Two foreign cooks put to work before filing for residence expose a restaurant to PYG 35,123,100. / About US$5,985 in potential fines, against about US$998 in residence fees.Ley Nº 6984/2022 De Migraciones, Art. 88 num. 8, 89, 90, 92, 93, 94 and 95, 2022-10-17 official text · verified 2026-10-28

4. Labor Code: equal treatment and preference for Paraguayans. The Labor Code applies to all workers and employers in Paraguay, nationals or foreigners. Clauses setting lower pay than another worker in the same company for work of equal efficiency, class and hours on grounds of age, sex or nationality are void; workers have the right to equal pay for work of equal nature, efficiency and duration without distinction of nationality. Among the employer's obligations is to prefer, all else being equal, Paraguayan workers and those who have previously served it satisfactorily. The Code sets no quota of foreign workers.
Cost to do it: No fee; the cost is paying the foreign hire and comparable Paraguayan staff on the same basis for the same work.
Example: A company cannot pay a foreign technician less than a Paraguayan doing the same job on the same shift because of nationality, nor the reverse. / Pay parity applies in both directions.Ley Nº 213/1993 Código del Trabajo, Art. 3, 47 e), 62 m) and 67 c) (not amended by Ley Nº 496/1995), 1993-06-29 official text · verified 2026-10-28

5. Mercosur nationals: equal labor and social security treatment. Residents under the Mercosur Residence Agreement enjoy treatment no less favourable than nationals in the application of labor law, especially pay, working conditions and social insurance, and may transfer remittances. Family members of other nationalities receive residence for the same term as the worker.
Cost to do it: Mercosur temporary residence PYG 2,341,540 (about US$399).
Example: An Argentine hired by a Paraguayan bank receives the same contract, IPS registration and benefits as a Paraguayan colleague. / Same cost structure as a local hire.Ley Nº 3578/2008, Agreement art. 9 num. 1, 2, 3 and 5, 2008-08-14 official text · verified 2026-10-28

6. Formal employment feeds the permanent residence file. For permanent residence filed from 6 July 2026, an employee proves income with IPS insured status or a labor contract approved and registered with the Labor Ministry; professionals and technicians need the same evidence on top of their registered degree, or tax returns with activity. A foreign worker employed informally will therefore struggle to move from temporary to permanent residence.
Cost to do it: No DNM charge for the evidence; IPS contributions and contract registration follow normal labor rules.
Example: An employer that registered a Brazilian supervisor with IPS from the first month can issue the insured status certificate the supervisor needs two years later. / Formal hiring avoids a failed permanent residence application and a new temporary residence fee of about US$499.Resolución DNM Nº 407/2026, Annex, categories 1, 2 and 3, 2026-06-25 official text · verified 2026-10-28

7. Tax residence of foreign staff. Personal income tax (IRP) applies to resident individuals, Paraguayan or foreign, on Paraguayan source income, which includes income from activities carried out in Paraguay and payments by Paraguayan IRE or IRP taxpayers for services provided abroad. Dividends paid to a resident shareholder bear IDU of 8 percent against 15 percent for a non resident. Rates and thresholds are on the IRP and IDU pages.
Cost to do it: IDU 8 percent for resident shareholders, 15 percent for non residents.
Example: A foreign manager who becomes resident and holds shares in the employer receives dividends taxed at 8 percent instead of 15 percent. / On a US$10,000 dividend, US$800 instead of US$1,500.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 43, 48, 49 and 62, 2019-09-25 official text · verified 2026-10-28

Step	Rule	Cost or risk
Worker files for residence before starting	Ley 6984 art. 57 and 88 num. 8	Fee PYG 2,926,925 (US$499), or PYG 2,341,540 (US$399) Mercosur; fine PYG 17,561,550 (US$2,993) per worker if skipped
Employer informs the DNM	Ley 6984 art. 7	No fee
Same pay as nationals for the same work	Código del Trabajo art. 47 e) and 67 c)	Void clauses and pay claims
Prefer Paraguayans all else being equal	Código del Trabajo art. 62 m)	No quota
Register with IPS and register the contract	Res. DNM 407/2026 categories 1 to 3	Without it, no proof of income for permanent residence
Watch card expiry dates	Ley 6984 art. 46 and 57	Expired card means a worker without a residence card

Employer checklist for a foreign hire (Ley 6984/2022, Ley 213/1993, Ley 3578/2008, Res. DNM 407/2026; DNM fees from 1 July 2026; USD at PYG 5,868.31)

Worked example

A Paraguayan EAS hires a Peruvian developer and a US product manager.
The Peruvian files for Mercosur temporary residence (PYG 2,341,540, about US$399) and can work once the card is issued; the American, who needs a visa for residence or paid activity under the DNM table, enters with it and files for temporary residence (PYG 2,926,925, about US$499), working from the day the precaria card is issued.
The company informs the DNM of both hires, registers both with IPS and registers the contracts with the Labor Ministry, which will later serve as their proof of income for permanent residence.
Had the company let both start work before filing, the exposure would have been PYG 35,123,100, about US$5,985.

Step by step

Decide the residence route with the candidate: Mercosur, temporary, occasional, or Investor Pass for founders.
Check the visa column of the DNM table for the candidate's nationality before travel.
Do not let the person start work until at least the precaria card (or the Mercosur or occasional card) is issued.
Inform the DNM of the hire and keep proof.
Register the worker with IPS and have the contract registered with the Labor Ministry.
Set pay on the same basis as Paraguayan staff in the same role.
Track card expiry dates and support the move to permanent residence in the window before expiry.

Common traps

There is no work permit to wait for, but there is no grace period either: work before filing exposes the employer to 150 jornales per worker.
The precaria card lasts 90 days and is issued once; if the temporary residence file stalls, the worker can be left without a valid card.
Paying a foreigner less than a Paraguayan for the same work on grounds of nationality is void, and so is the reverse.
Informal employment leaves the worker without IPS or registered contract evidence for permanent residence under Res. DNM 407/2026.
Foreign residents who earn income in Paraguay are taxpayers like nationals (Ley 6984 art. 18), so payroll withholding and IRP rules apply.

Sources

← Short assignments in Paraguay: spontaneous or occasional residence for technicians, managers and invited professionalsFamilies in Paraguay: residence for spouses and children, relatives of Paraguayans and the minors' rules →

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