For decades, Brazilian migration to Paraguay was mainly associated with economic motivations. In this context, the search for lower-cost products for resale in Brazil, as well as enrollment in private universities—particularly in medicine and other health-related programs—were among the main factors driving migration to the neighboring country. In recent years, however, a new migration dynamic has emerged, shaped not only by economic interests but also, and more importantly, by political and ideological motivations.

Driven by narratives spread through social media platforms, video channels, and digital groups—such as YouTube, TikTok, Telegram, and others—Paraguay has increasingly been portrayed by certain segments of the Brazilian right as an alternative capable of offering greater economic freedom, lower taxation, less state intervention, and a political environment perceived as more conservative. Within this narrative, the country appears as a counterpoint to contemporary Brazilian politics, which is often described by these groups as excessively regulated, highly taxed, and disconnected from their political values.

This phenomenon becomes even more relevant within the context of recent developments in Brazilian politics. The return of the Workers' Party (PT) to the federal government, the institutional consequences of the January 8, 2023 events, and the growing political polarization have led part of this electorate to consider international migration alternatives. Faced with the economic and bureaucratic barriers imposed by traditionally desired destinations such as the United States and European countries, Paraguay offers clear advantages: geographic proximity, relatively low living costs, ease of mobility, and the presence of a significant Brazilian community within its territory.

As a result, a migratory flow that has existed since the construction of the Friendship Bridge has begun to incorporate new migrant profiles, including retirees, small business owners, and self-employed professionals attracted by promises of lower taxation and greater economic freedom. Beyond the narratives promoted on social media and the political discourse surrounding this movement, however, a fundamental question remains: does the Paraguayan model truly represent the political and economic refuge imagined by part of the Brazilian right?

In 2025 alone, Paraguayan authorities granted approximately 23,500 residence permits to Brazilian citizens. According to data from Paraguay's National Directorate of Migration, this represents part of a continuous growth trend that has been observed since 2020. Due to the increasing migratory flow—which, it is important to note, has increasingly incorporated motivations related to political and economic alignment—local authorities were required to organize special registration campaigns to process the growing number of Brazilians applying for residency in the country (Tavares, 2026).

Within this context, the image of Paraguay as a "bureaucratic-free paradise" has gained strength among liberal and conservative circles in Brazil, especially on social media. For this audience, the country represents an alternative to the Brazilian economic model, often criticized for its high tax burden, regulatory complexity, and strong state presence in various sectors of the economy. The idea of a smaller and less interventionist state therefore finds in Paraguay an example frequently invoked as a symbol of economic freedom and greater opportunities for entrepreneurs and investors.

One of the main pillars supporting this narrative is Paraguay's tax policy, particularly since the early 2000s. In this regard, the Maquila Law became one of the central instruments of the country's strategy to attract foreign investment. Inspired by industrial policies implemented in Mexico, the regime allows export-oriented companies to operate under highly favorable tax conditions, paying only a reduced tax on the value added within the country while benefiting from exemptions on the importation of machinery, equipment, and production inputs. The objective of this policy was to transform Paraguay into a competitive hub for industries targeting regional and international markets.

At the same time, the so-called "10-10-10" tax system—based on 10% rates for Value Added Tax (VAT), corporate income tax, and personal income tax—helped consolidate the country's image as one of the least taxed economies in South America. In addition, the low taxation of certain forms of income and the absence of some taxes that exist elsewhere in the region reinforce the perception of a business-friendly environment favorable to entrepreneurship and private capital accumulation.

Not surprisingly, these characteristics have attracted not only foreign investors and industrial firms but also, within the migration context explored here, Brazilian retirees, self-employed professionals, and small business owners who see Paraguay as an opportunity to increase their income and reduce operating costs. In this sense, recent migration is influenced both by ideological affinities and by the country's liberal economic model, which appeals to sectors of the Brazilian right.

However, the same characteristics that make Paraguay attractive to certain economic groups also raise questions regarding the structural limits of this development model. Maintaining a low tax burden restricts the state's revenue-generating capacity and, consequently, its ability to make long-term investments in strategic areas such as infrastructure, education, healthcare, science, and technology. While attracting foreign capital may stimulate economic growth in the short and medium term, its ability to promote a sustainable process of national development remains a matter of debate among economists and political scientists.

In other words, tax competitiveness may function as an effective mechanism for attracting investment, but it can hardly replace the need for a state capable of planning, coordinating, and financing public policies aimed at productive diversification and increased economic competitiveness. Therefore, the central question is not only whether Paraguay can attract companies and migrants, but whether this model will be capable of sustaining higher levels of economic development and social well-being over the long term.

Thus, although Paraguay has established itself as an attractive destination for investors, entrepreneurs, and Brazilians who identify with conservative and liberal values, the outcomes of this economic model still present significant limitations when analyzed through the country's social and development indicators. Low taxation, reduced bureaucracy, and limited state intervention may attract capital and new residents, but they do not necessarily guarantee improved living conditions for the population as a whole. In this sense, the benefits offered by the country appear to be more advantageous for individuals with foreign income, investment capacity, or economic activities that directly benefit from Paraguay's tax incentives.

Therefore, the image of Paraguay as a potential refuge for the Brazilian right should be approached with caution. More than a political or ideological alternative, the country represents an experience that combines specific economic opportunities with persistent structural challenges. It remains to be seen whether this recent migratory movement will become a lasting trend or whether Paraguay will remain largely a promise shaped by political narratives and expectations that may ultimately encounter the limits imposed by the country's own economic and social realities.

References:

BARROS, Duda Monteiro de. Com altas taxas de pobreza e informalidade, Paraguai vira o novo sonho da direita brasileira. 2026. Veja. Disponível em: https://veja.abril.com.br/brasil/com-altas-taxas-de-pobreza-e-informalidade-paraguai-vira-o-novo-sonho-da-direita-brasileira/. Acesso em: 29 maio 2026.

FICHER, Alisson. Adeus, Brasil: brasileiros se dizem ⠸oprimidos⠹ e partem para o paraguai em busca de ⠸sonho de direita⠹ com impostos de 10%, energia até 2,8 vezes mais barata e 23,5 mil pedidos de residência em 2025. brasileiros se dizem ‘oprimidos’ e partem para o Paraguai em busca de ‘sonho de direita’ com impostos de 10%, energia até 2,8 vezes mais barata e 23,5 mil pedidos de residência em 2025. 2026. Click Petróleo e Gás. Disponível em: https://clickpetroleoegas.com.br/adeus-brasil-brasileiros-se-dizem-oprimidos-e-partem-para-o-paraguai-em-busca-de-sonho-de-direita-com-impostos-de-10-energia-ate-28-vezes-mais-barata-e-235-mil-pedidos-de-residencia-em-afch/. Acesso em: 29 maio 2026.

TAVARES, Vitor. 'Somos oprimidos no Brasil': a onda de brasileiros rumo ao paraguai em busca de 'sonho de direita'. a onda de brasileiros rumo ao Paraguai em busca de 'sonho de direita'. 2026. BBC News Brasil. Disponível em:https://www.bbc.com/portuguese/articles/cwyw7696n1zo. Acesso em: 29 maio 2026.