Germany's Political and Economic Uncertainty... Spread of 'Systematic Migration' Toward Paraguay in South America

In Germany, an economic powerhouse in Europe, the procession of immigrants heading to the landlocked South American nation of Paraguay is increasing noticeably. While in the past, retirees mainly left in search of low living costs, recently, various classes including professionals and entrepreneurs are choosing formal immigration through systematic preparation.

According to information provided by Choi Jun-young's 'Globe Research Institute', 1,132 Germans received formal immigration permits in Paraguay in the first half of 2026 alone. This is a very steep increase compared to the total number of immigrants in the entire year of 2025, which was 1,600. Currently, Germans account for the largest proportion among Europeans residing in Paraguay. Unlike those who headed to Paraguay in 2020 during the COVID-19 pandemic in response to the German government's strong movement restrictions and regulatory measures and returned after simply leaving out of temporary resentment, recent immigrants are characterized by preparing and settling down very systematically.

"Six months of the year are spent on taxes and paperwork"... Germany's regulations and tax burden

The core reason why Germans specifically choose Paraguay in South America is the economic and political instability within Germany. They cite Germany's high tax rates, excessive administrative regulations, and political uncertainty due to social conflict as the main reasons for escaping. In particular, among small and medium-sized enterprise operators and the self-employed, voices saying "we can no longer pay taxes in Germany" are high. They long for the free environment of Paraguay, stating that it is too difficult to implement new ideas due to the strong regulations of the EU.

The experience of a couple—a husband majoring in software and a wife majoring in Geographic Information Systems (GIS)—introduced as a real-life case, clearly shows the regulatory environment of Germany. This couple, who started a business for ground observation services using satellite data, lamented, "We work all year round, but for six months we work to pay taxes, and for the remaining six months, we spend all our time and money processing various administrative documents." They stated that the environment, where even a small mistake in the document processing process immediately results in high fines or penalties, made it difficult to sustain the business. They eventually closed their company in Germany and moved to Paraguay, and are currently operating an automobile trading platform and earning stable profits. Paraguay acted as an attraction because residence permits can be obtained relatively easily if certain requirements are met, and above all, the tax burden is very low.

This pattern of immigration appears regardless of social class. In the case of salaried workers, they attempt to get jobs at local companies or start businesses based on their digital and tech-related skills, while investors are injecting funds into real estate or advanced technology sectors. Within Germany, social conflicts also appear, such as mocking or hurling political criticism at the phenomenon of high-income professionals leaving like this.

Political division and social conflict... People tired of 'camp logic'

In addition to economic factors, resistance to changes in German society is also fueling immigration. It is pointed out that while German society in the past valued 'social compromise' by recognizing each other's differences and finding common ground to solve problems, recently, conflict is intensifying as camp logic prevails. Immigrants agree that Germany has changed into an atmosphere of excluding others by clearly revealing differences, unlike in the past. This is also expressed through the metaphor that Germany seems to be becoming 'Koreanized'.

Conflict related to Muslim immigrants was also mentioned as one of the major factors. It is analyzed that as resentment grows against certain groups that insist on their own rules without following Germany's basic rules, an increasing number of people are deciding, "I would rather leave." Additionally, the anxiety that war might break out again on the European continent due to the war in Ukraine and other factors is also a factor driving people toward South America.

Paraguay emerging as a new economic hub in South America

Paraguay, which Germans have left, is showing dynamic economic growth, moving away from its past image as the 'poorest country in South America'. Paraguay is a landlocked country bordering Brazil, Argentina, and Bolivia, and possesses two large rivers, the Paraná River and the Paraguay River. These rivers are connected by inland waterways, providing favorable conditions for exporting goods and agricultural products to the border areas of Argentina and Uruguay. Paraguay's GDP has risen steadily since the mid-2000s, reaching approximately 7,000 dollars in nominal GDP and approximately 18,000 dollars in Purchasing Power Parity (PPP).

Economic growth indicators are also notable. Paraguay's GDP growth rate recorded 6% last year, and growth at a level of 4.5% is expected this year as well. This figure is among the top within Mercosur, the South American economic community. Paraguay's growth engine is its abundant resources and business-friendly policies. The core is its world-class soybean and beef export capability based on vast plains, and cheap energy. In particular, most of the energy is supplied by hydroelectric power, at the center of which is the world's largest Itaipu Dam, which shares electricity half-and-half with Brazil. The annual power generation capacity of the Itaipu Dam is about 14 gigawatts (GW), which is a massive amount equivalent to 10 units of Korea's latest type of nuclear power plant (APR1400, about 1.4GW).

Thanks to cheap energy, low land prices, and a business-friendly environment, high-rise buildings are increasing and foreign investment is surging in Asunción, the capital of Paraguay, in recent years. Among German immigrants, new business models are also emerging, such as dividing and selling land in terrains preferred by Germans or building resorts targeting them. Paraguay is now positioning itself as a land of new opportunities beyond a simple refuge.

Source: original video (YouTube)