If you are based in Paraguay as a freelancer, Amazon seller, investor, or business owner and generate income from U.S. sources, you may be required to hold an ITIN (Individual Taxpayer Identification Number) issued by the Internal Revenue Service (IRS).
Because Paraguay does not have a tax treaty with the United States, most U.S. income is subject to standard withholding. To correctly declare your foreign status, manage withholding, and receive payments without disruption from platforms like Stripe, Payoneer, Amazon, Google AdSense, Fiverr, and Upwork, having a valid ITIN is still critical.
As an IRS Certified Acceptance Agent (CAA), House of Bookkeepers assists Paraguay based applicants with applying for an ITIN from Paraguay through a fully remote process, ensuring passports remain safely in Paraguay while IRS verification and submission are handled for you.
What Is an ITIN?
An Individual Taxpayer Identification Number (ITIN) is a nine digit U.S. tax number in the format 9XX-XX-XXXX issued by the IRS for people who must report or file U.S. taxes but are not eligible for a Social Security Number.
🔍 What an ITIN Does Not Do:
- It is not a U.S. work visa
- It does not provide immigration or residency rights
- It is not a substitute for a Social Security Number
It does not grant permission to work in the United States
That said, an ITIN is required for individuals in Paraguay who want to receive money from U.S. based platforms such as Stripe, Upwork, Fiverr, Amazon KDP, Amazon Seller Central, Google AdSense, Etsy, Payoneer, and similar services in a compliant way.
Why Paraguay Freelancers and Business Owners Need an ITIN
If you operate from Paraguay as a freelancer, digital creator, entrepreneur, remote professional, or investor earning U.S. sourced income, an ITIN enables you to:
- Complete Form W 8BEN correctly to declare foreign tax status
- Avoid the automatic 30 percent U.S. withholding
- Prevent account reviews, payment blocks, or payout delays
- Receive smoother and faster payments from Stripe, Payoneer, and Amazon
- File U.S. tax returns (Form 1040 NR) when required
- Stay compliant with IRS rules and payment platform policies
Who in Paraguay Commonly Needs an ITIN
Freelancers & Digital Professionals
Designers, developers, consultants, writers, and online professionals in Paraguay who earn through Upwork, Fiverr, Google AdSense, Amazon KDP, or Payoneer often need an ITIN to:
- Submit Form W 8BEN properly
- Avoid account verification or payout interruptions
- File Form 1040 NR for refunds or IRS compliance
Amazon & E Commerce Sellers
Paraguay based sellers using Amazon FBA, Shopify, or Stripe Atlas usually require an ITIN to:
- Correctly complete W 8BEN or W 9 forms
- Avoid the default 30 percent U.S. withholding
- Manage U.S. marketplace or U.S. LLC tax reporting
Property Investors
If you sell or rent out U.S. real estate, FIRPTA applies a 15 percent withholding on the sale amount.
With an ITIN, you can submit Form 1040 NR to claim back any excess tax withheld.
Filing Jointly with U.S. Spouse
If your spouse is a U.S. citizen or green card holder, you will need an ITIN to file a joint U.S. tax return and access applicable family related tax benefits.
Residents of Paraguay who own or operate a U.S. LLC commonly need an ITIN for IRS and business tax reporting. Typical documents include:
- Articles of Organization
- IRS EIN Confirmation Letter (CP575)
- Operating Agreement for multi member LLCs
Benefits of Having an ITIN from Paraguay
- Legally submit U.S. tax returns
- Lower or remove the standard 30 percent withholding
- Claim refunds on excess U.S. tax paid
- Recover FIRPTA withholding from property sales
- Open and maintain U.S. payment and business accounts
- Build long term credibility for U.S. connected business operations
U.S.-Paraguay Tax Considerations
Paraguay does not have an income tax treaty with the United States. This means U.S. source income earned by Paraguay residents is generally subject to the standard U.S. withholding rules. Even so, an ITIN is still required for:
- Platform withholding and reporting (Stripe, Payoneer, Amazon)
- U.S. LLC or business tax filing
- Banking, KYC, and FATCA compliance
Submitting Form W 8BEN with a valid ITIN ensures your foreign status is properly recorded, payments are not interrupted, and U.S. income is reported correctly.
To Remain Compliant, You Typically Need:
- A valid ITIN
- A correctly completed Form W-8BEN
- Form 8233 (only for specific academic or research income, if applicable)
How to Apply for an ITIN from Paraguay (2026)
Step 1: Confirm Your Eligibility
Residents of Paraguay may qualify for an ITIN for the following U.S. tax and compliance purposes:
- Filing a U.S. tax return (Form 1040-NR)
- Platform compliance through Form W-8BEN
- Selling or renting U.S. property (FIRPTA)
- Filing jointly with a U.S. citizen or permanent resident spouse
- Owning or operating a U.S. LLC
- Receiving U.S.-sourced scholarships or research funding
- Banking or financial compliance (KYC / FATCA)
💡 If your ITIN is required only for W-8BEN platform compliance, you may qualify under an IRS exception and may not need to file a U.S. tax return.
ITIN Eligibility Scenarios for Paraguay Applicants
| Reason for Applying | Description | W-7 Box to Check | Tax Return Required? |
| Filing a U.S. tax return | Reporting freelance, investment, or property income | b – Nonresident alien filing a U.S. tax return | ✅ Yes (attach Form 1040-NR) |
| Platform compliance via W-8BEN | Providing ITIN to meet compliance and avoid account holds on Stripe, Amazon, Payoneer, AdSense | h – Exception 1(d): Third-party withholding | ❌ No (exception category) |
| U.S. rental or sale (FIRPTA) | Reporting U.S. real estate rental or sale income | b (if filing) or h (if exception applies) | ⚙️ Depends |
| Filing jointly with U.S. spouse | Paraguay residents married to U.S. citizens or green card holders | e – Spouse of U.S. citizen/resident | ✅ Yes (joint return) |
| Owning or managing a U.S. LLC | Required for foreign reporting or EIN activation | b (if filing) or h – Exception 1(d) | ⚙️ Depends (usually yes for multi-member LLCs) |
| Receiving U.S. scholarships or grants | Nonresident student or researcher receiving U.S. taxable funds | f – Nonresident alien student/professor/researcher | ⚙️ Depends on institution |
| Bank or financial compliance | U.S. banks, brokers, or processors require a U.S. tax ID for KYC/FATCA | h – Exception 1(d) | ❌ No (exception category) |
| Refund claim for excess withholding | Requesting refund on U.S. income (e.g., 1042-S or 1099) | b – Nonresident alien filing a U.S. tax return | ✅ Yes (attach Form 1040-NR) |
Note: Exception 1(d) applies to platform withholding, U.S. banking compliance, and LLC filings.
Step 2: Complete IRS Form W-7
Form W-7 is the official IRS application for an ITIN. It must be completed carefully and accurately to avoid processing delays or rejection.
Step 3: Prepare the Required Documents
You will need:
- A valid passport (verified locally through a Certified Acceptance Agent)
- A U.S. tax return (if required)
- Supporting compliance documents (W-8BEN, contracts, income records, or bank letters)
Step 4: Apply Through a Certified Acceptance Agent (CAA)
With House of Bookkeepers, Paraguay residents receive a fully remote and secure ITIN service:
- Your passport never leaves Paraguay
- Identity is verified locally
- A Certificate of Accuracy (COA) is issued
- Your ITIN application is submitted directly to the IRS
ITIN Processing Timeline
- Standard processing: 8–13 weeks
- Peak season: 13–16 weeks
In most cases, your ITIN is available in about 2.5 months, even if the official IRS letter (CP565) arrives later by mail.
Quick FAQs for ITIN from Paraguay
Q1. Can I apply for an ITIN from Paraguay?
Yes. With House of Bookkeepers as your IRS-Certified Acceptance Agent, you can apply directly from Paraguay without traveling to the United States.
Q2. Does Paraguay have a U.S. tax treaty?
No. Paraguay does not have a tax treaty with the United States. However, an ITIN is still required for platform compliance, U.S. tax reporting, and financial institutions.
Q3. How will I know my ITIN is approved?
The IRS issues Letter CP565 upon approval. House of Bookkeepers will notify you once confirmation is received.
Q4. Do I need a U.S. address?
No. The IRS can mail your approval letter directly to your address in Paraguay.
Q5. How is my identity verified?
Your identity is verified using passport validation and a compliance selfie, following official IRS CAA procedures. No original documents are mailed to the U.S.
Apply with Confidence
House of Bookkeepers delivers secure, accurate, and IRS-compliant ITIN applications for professionals and entrepreneurs in Paraguay.
📍 IRS-Certified Acceptance Agent (CAA) – Paraguay Service
🌍 Website: https://www.houseofbookkeepers.com
Start your ITIN application today for smoother payments, reduced withholding, and hassle-free U.S. tax compliance.
