I'm a Swiss citizen living in Paraguay, but my source of income is mainly in the US, because I work remotely. USA and Paraguay have no treaty to avoid double taxation, so does that mean that I have to pay taxes in the US due to the source of income being there and then also in Paraguay because I'm working here?

I can't see how double taxation could be avoided in this case.

  • 2
    If you're working remotely then you work in Paraguay, not in the US. US taxes would not normally be payable.
    – Mike Scott
    Mar 26 '18 at 10:17

The source of your income is totally irrelevant.

In this example, you would not in any way be involved with the US authorities.

Your only question is paying Paraguay and/or Swiss taxes.


You've now asked about the separate issue of withholding:

Yes OF COURSE the US company, will, generally, WITHHOLD taxes on the payments.

There's a form you must fill in to prevent that.

You must do that - it's an basic of any company/person working with US companies.

Good luck!

I suggest if you have detailed questions about "avoiding withholding on payments coming from the states", that is a separate topic. (And indeed you'll find many QA about the issue, on here.)


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