Compare Paraguay vs. Uruguay Temporary Residency Options Side by Side.

1. Purpose & Scope
Paraguay

Paraguay offers a relatively accessible temporary residency route for foreigners seeking to live, work or establish a business in the country. strategicasa.com+4Lincoln Global Partners+4Wandering Investor+4
The route is often positioned as a “Plan B” option or more flexible base in South America. expatmoney.com+1
After the temporary residency term you may apply for permanent residency. paraguaypathways.com+1
Uruguay

Uruguay’s temporary residency is for foreigners intending to stay for more than 180 days (≈6 months) but less than two years (in many cases) as a first step. Gub.uy+2Gub.uy+2
Uruguay is often seen as a “Plan A” destination — meaning a choice for people who want to establish residence rather than just an easy fallback. NTL Trust+1
After temporary residency, the route to permanent residency (and eventually citizenship) is possible. Wandering Investor+1
Summary: Paraguay gives a more accessible, lower-threshold route; Uruguay offers a more robust pathway for those serious about relocating.

 
2. Key Requirements
Country
Duration & Validity
Core Documents / Conditions
Cost & Timeframe
Paraguay
Temporary residency is initially up to ~2 years and may be extendable. Lincoln Global Partners Some sources say up to two years, extendable for another equal period. strategicasa.com+1
Typical requirements: valid passport, birth certificate (apostilled & translated), clear criminal record, health certificate/proof of solvency/entry stamp. Lincoln Global Partners+2mre.gov.py+2 Documents must be apostilled/translated into Spanish. Nomad Tax+1
Process often takes ~90 days after application. NTL Trust+1 Cost is relatively low compared to investment-heavy programmes. www.ndtv.com+1
Uruguay
Temporary residency for foreigners who intend to stay more than 180 days but less than two years (in many cases) in the first instance. Gub.uy+1
Requirements: foreign documents apostilled/legalised, proof of activity (work contract, business letter) or reason to stay (for workers/entrepreneurs) for temporary residency. Gub.uy+1 For Mercosur/associated countries there are simplifications. Live in Uruguay+1
Slightly heavier bureaucracy; timeline often 6-12 months if you aim for permanent residence later. Wandering Investor+1 Fees apply (application fees etc) though amounts vary by case. Live in Uruguay
Summary: Both require standard good-standing documents, apostilles/translations. Paraguay tends to be faster and less demanding; Uruguay’s route may require proof of economic activity or reason for stay and may take longer.

 
3. Work & Business Rights
Paraguay

Once you have temporary residency in Paraguay you are typically allowed to live, work (public or private sector), register a business, open bank accounts and sign contracts. Lincoln Global Partners+1
The “SUACE” (company-opening) stream is geared toward entrepreneurs and business set-up. Lincoln Global Partners
Uruguay

The temporary residency regime covers workers and entrepreneurs: e.g., a letter specifying company info, contract term, remuneration etc is needed. Gub.uy
For exporting companies hiring foreigners, there is a “fast-track” process via Uruguay XXI. XXI
Summary: Both permit work/business activities under the temporary residency. Paraguay has slightly more relaxed, accessible business set-up; Uruguay has defined structures and perhaps more regulation.

 
4. Pathway to Permanent Residency / Citizenship
Paraguay

After holding temporary residency for roughly two years (and abiding by requirements) you may apply for permanent residency. Wandering Investor
Temporary residency may be up to 2 years and extendable by another period before moving to permanent residence. strategicasa.com
Permanent residency grants a more long-term right to stay; naturalisation into citizenship is possible later under Paraguayan law. Wikipedia+1
Uruguay

In Uruguay you can apply for permanent residence after fulfilling temporary status and demonstrating actual residence/centre of interests in the country (stay obligations apply). Wandering Investor+1
Citizenship can be applied for 3 years (if married) or 5 years (if single), contingent upon residence and other conditions. Wandering Investor
Summary: Both countries offer a route to permanent residency and eventually citizenship. Paraguay may be faster and simpler; Uruguay’s route is more formal and may demand longer actual residence.

 
5. Residency Stay & Tax Considerations
Paraguay

The requirement for physical stay is relatively modest (many reports say you don’t need to permanently live full-time though you must maintain your status). Some note you might need to make at least some visits and maintain a base. paraguaypathways.com+1
Tax residency rules are more flexible; many foreign-location income structures may work.
Uruguay

Tax residence in Uruguay: you must stay more than 183 consecutive days in a given year (with allowed absences) or your centre of vital interests must be in Uruguay. Global Citizen Solutions+1
For temporary residency specifically: stay more than 180 days in first year is requirement. Live in Uruguay+1
Summary: If your goal is minimal time on-ground, Paraguay may be more forgiving. If you plan to physically live most of the year in the country, Uruguay offers a clear path but you must meet stronger stay/time commitments.

 
6. Pros & Cons
Paraguay – Pros

Low financial barrier / accessible to many nationalities.
Straightforward document list, relatively fast processing.
Good for digital nomads, remote workers or business-set-up looking for a base.
Lower cost of living (generally) and less competition for residency.
Paraguay – Cons

Infrastructure, services and lifestyle amenities may be less developed compared to Uruguay.
If you seek full integration, the language (Spanish) and local bureaucracy may pose a challenge. Some reports say you’ll need to spend a few months on-site for appointments. Reddit+1
Tax residence and worldwide income issues may need careful planning if you stay long-term.
Uruguay – Pros

Highly regarded in Latin America for quality of life, political stability and welcoming environment for expats.
Clear, formal pathway to actual long-term residency and citizenship.
Good infrastructure, services and lifestyle potential for someone relocating.
Uruguay – Cons

Higher cost of living compared to Paraguay, generally.
You’ll likely need to physically be in the country for significant periods (stay requirements).
Greater documentation and possibly longer application times.
If you’re looking for purely flexible, “semi-nomad” base, you might find the obligations heavier.
 
7. Which Should You Choose?
Here are some guiding questions to help you pick:

How much time do you plan to spend on-ground?

If just a part-year or flexible base: Paraguay may suit better.
If you want to relocate and live most of the year: Uruguay is stronger.
What is your budget and investment appetite?

Paraguay: lower barrier to entry.
Uruguay: may require more financial commitment or sustained stay.
What kind of lifestyle / services do you expect?

If you want strong infrastructure, expat community, high-quality services: Uruguay may pull ahead.
If you are more flexible, value affordability and simplicity: Paraguay might win.
How important is it for you to pursue citizenship eventually?

Both allow eventual citizenship.
If you’re serious about long-term settlement: Uruguay may offer more robust pathway.
If you treat it as a base while keeping other plans: Paraguay may be enough.
 
8. Final Thoughts
In summary:

If your goal is flexibility, low cost and a relatively straightforward process for temporary residency in South America, then Paraguay is a compelling option.
If your goal is long-term relocation, living most of the year, better services and a clear path to citizenship, then Uruguay is the stronger choice.
Of course, individual circumstances (nationality, income, business interests, stay intentions, tax planning) matter a lot. It’s wise to consult a local migration specialist or legal adviser in the country of interest.