Stateless

Paraguay

PY PYG₲ Guaraní
Pros
Low tax burden with a simple 10% flat rate for corporate and personal income.
Territorial taxation system exempting foreign-sourced income from domestic levies for residents.
Abundant and affordable hydroelectric power reducing operational costs for industrial activities.
Cons
Systemic institutional corruption and weak judicial independence affecting contract enforcement and property rights.
Underdeveloped physical infrastructure and logistical bottlenecks increasing transportation costs for landlocked trade.
Significant informal economy and security risks in border regions linked to illicit activities.

Long story short: In Paraguay, the state pretty much leaves you alone: tax rates that barely sting, a company set up in a few days, and zero interest in what you earn abroad.

The catch: customs officers and judges expect their cut without any shame, and the banking system, solid as it is, gets stingy the moment you ask for credit.

Beyond that: the nice neighborhoods of Asuncion stay calm, the grilled beef is excellent, the scenery stays flat, but the farming potential is massive.

VERYLOW TAX 8.6/10 HOLDING 4.8/10 DIVIDENDPIPELINE 5.8/10 CRYPTOHAVEN 2/10 PRIVACYGRADE 7.3/10
─ On this page
01 Will Paraguay tax what you earn? 02 Will Paraguay tax what you own? 03 Is it easy to run a company in Paraguay? 04 Is Paraguay good for your holding company? 05 What does it cost to come and go from Paraguay? 06 Is your money watched in Paraguay? 07 Is Paraguay itself a liability? 08 Will you feel free in Paraguay? 09 Is Paraguay connected to the rest of the world?

Will your income be taxed?

Long story short: YES, BUT LIGHTLY.
Income tax in Paraguay is already light (10% at the top), and the territorial regime shrinks the net further: foreign-source income doesn't even enter it.

Friendly sticker, friendlier machinery.

01.1 Income tax
Personal income tax
8 → 10%
read moreClose
De quoi s’agit-il ?What residents pay on what they earn: salary, freelance income, sometimes dividends too. We show the system (flat or progressive) and the top rate.
Source et informations complémentairesprogressive · 3 brackets
Bracket (USD)Rate
0 – 8,3508%
8,350 – 25,0509%
25,050 +10%
01.2 Tax residence test
A single active rule is enough to make you tax-resident.
183-day rule
does not exist here
Economic interest
does not exist here
Family centre
does not exist here
Habitual abode
does not exist here
Extended-stay test
Income tax simulatori

If you earn a year, you will pay .

Roughly effective, with a marginal rate of .

Will your wealth be taxed?

Long story short: YES, BUT LIGHTLY.
Paraguay takes a light trim on capital gains (8% at the top), with no annual wealth levy and no inheritance regime.

Your portfolio compounds with barely any friction; the state only shows its face when you sell. And even then, politely.

02.1 Investment income
Capital gains
8%
read moreClose
De quoi s’agit-il ?The tax on your profit when you sell something that gained value: stocks, property, crypto, a business. Some countries skip it entirely.
Source et informations complémentairesflat
Dividend tax
8%
read moreClose
De quoi s’agit-il ?What you pay when your company sends you dividends. It stacks on top of corporate tax, so the combined bill is what really counts.
Source et informations complémentairesflat
Interest income
8%
read moreClose
De quoi s’agit-il ?The tax on income from savings, bonds and loans. Matters when choosing where to park your cash.
Source et informations complémentairesflat
02.2 Wealth & estate
Wealth tax
NONE
read moreClose
De quoi s’agit-il ?A yearly tax on what you own above a threshold, whether you sell or not. Most countries scrapped it; a few still run one.
Source et informations complémentairesno annual wealth tax · no real-estate wealth tax · no net-worth assessment
Inheritance system
NONE
read moreClose
De quoi s’agit-il ?What heirs pay on what they inherit, by category (spouse, children, others), with allowances and top rates. Plenty of countries charge nothing at all.
Source et informations complémentairesno estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply.
02.3 Crypto
Crypto · tax regime
UNREGULATED
read moreClose
De quoi s’agit-il ?How crypto gains are taxed here: zero, flat, progressive or grey zone. Includes whether crypto-to-crypto swaps count as taxable events.
Source et informations complémentairesFallback rate: 8% · Paraguay lacks specific crypto legislation after the 2022 presidential veto of a regulatory bill. Crypto-assets are treated as intangible property under general tax law (Law 6380/19). Individuals are taxed at 8% on capital gains (IRP-RGC). Professional traders and miners are taxed at 10% (IRE). A small exemption applies if total annual sales of movable assets are under 20 million PYG (approx. USD 2,700). Sources: Law 6380/19, Decree 3181/19, BCP Statement 2022.
Crypto-to-crypto
TAXABLE
read moreClose
De quoi s’agit-il ?How crypto gains are taxed here: zero, flat, progressive or grey zone. Includes whether crypto-to-crypto swaps count as taxable events.
Source et informations complémentaireseach swap counts as a disposal — gains realised at every trade
FATF travel rule
NOT SIGNED
read moreClose
De quoi s’agit-il ?Does this country enforce the crypto Travel Rule? If yes, exchanges must identify senders and recipients, like banks do for wire transfers.
Source et informations complémentairesno information-sharing obligation on VASP transfers

Easy to run a company there?

Long story short: YES.
Corporate tax in Paraguay sits at a low 10%, VAT included in the good mood. Setting up and running a company is cheap; whatever ends up killing your venture here, it won't be the tax bill.

03.1 Rates
Corporate tax
10%
read moreClose
De quoi s’agit-il ?What companies pay on their profits. The headline rate is a starting point: IP boxes and holding regimes often pull the real rate lower.
Source et informations complémentairesflat
VAT standard rate
10%
read moreClose
De quoi s’agit-il ?The sales tax baked into almost everything you buy here. One standard rate, plus reduced rates on things like food or books.
Source et informations complémentaires2 distinct tiers in force
5%10%
Food & drink
5%
food
10%
non-alcoholic
10%
alcohol
Print media
10%
books
10%
ebooks
10%
newspapers
Culture
10%
cultural events
10%
cinema
10%
theatre
10%
museums
10%
sports
Transport
10%
public transit
10%
rail
10%
air
Hospitality
10%
hotels
10%
restaurants
10%
takeaway
Health
5%
pharma
10%
medical dev.
Energy
10%
electricity
10%
natural gas
10%
district heat.
10%
domestic fuel
Utilities
10%
water
10%
waste
Clothing
10%
kids clothing
Digital & telecom
10%
digital
10%
telecom
10%
broadcast
Construction
10%
construction
5%
social housing
Agriculture
5%
farm inputs
5%
animal feed
Personal services
10%
funeral
10%
hairdressing
Finance
10%
insurance
10%
financial svc.
03.2 Regime & registry
IP Box · Patent Box
NONE
read moreClose
De quoi s’agit-il ?A discounted tax rate on income from patents, software and designs, often 5 to 10%. A magnet for tech and licensing businesses.
Source et informations complémentairesno IP regime · IP income taxed under standard corporate rules
Misuse of corporate assets
NO CRIMINAL
read moreClose
De quoi s’agit-il ?If you spend company money on yourself, is it a crime (prison possible) or a civil matter? Some countries prosecute even sole shareholders.
Source et informations complémentairesno criminal liability · In Paraguay, the closest equivalent to misuse of corporate assets is 'Breach of Trust' (Lesión de Confianza) under Article 192 of the Penal Code (Ley 1160/97). This crime requires the violation of a duty to protect the property interests of a 'third party' (tercero). In a solvent company where the director is the sole shareholder, the owner's consent negates the criminal nature of the act as there is no third-party victim. Such conduct is treated as a civil matter (confusion of patrimony) or a tax issue (irregular dividend distribution) rather than a criminal offense.
Shareholders privacy
PUBLIC
read moreClose
De quoi s’agit-il ?How visible a company's shareholders and directors are: free public registry, paywalled, restricted or fully private. More privacy, but sometimes warier banks.
Source et informations complémentairesDirección General de Personas y Estructuras Jurídicas y Beneficiarios Finales (DGPEJBF)
Directors privacy
PUBLIC
read moreClose
De quoi s’agit-il ?How visible a company's shareholders and directors are: free public registry, paywalled, restricted or fully private. More privacy, but sometimes warier banks.
Source et informations complémentairesDirección General de Personas y Estructuras Jurídicas y Beneficiarios Finales (DGPEJBF)
03.3 Incorporation cost
In this country, the most standard company form is called Empresa por Acciones Simplificadas (EAS) (Simplified Joint Stock Company). The costs below are for incorporating a company in its simplest form, for reference only.
Government Registration & Registry Fees
USD 250
Professional Incorporation Service (Legal, RUC, Rep)
USD 3,757
Total
USD 4,008

A good fit for a holding?

Long story short: YES, BUT THIN.
Paraguay runs a full participation exemption (100% on qualifying dividends and gains), but the treaty network is skinny (6 agreements): in plenty of geographies your dividends get clipped at the source before they ever reach the holding.

Fine for a regional play, undersized for a global one.

04.1 Substance & exemptions
Territorial · individuals
TERRITORIAL
read moreClose
De quoi s’agit-il ?Does this country tax only local income (territorial) or everything you earn worldwide? Territorial means your foreign income stays untaxed here. Huge.
Source et informations complémentairesterritorial — foreign-source income generally untaxed
Territorial · corporates
WORLDWIDE
read moreClose
Source et informations complémentairesworldwide corporate taxation
Participation exemption
100%
read moreClose
De quoi s’agit-il ?Can a holding company receive dividends from its subsidiaries tax-free? The cornerstone of any serious holding structure.
Source et informations complémentairesno minimum threshold · no holding period
CFC rules
NONE
read moreClose
De quoi s’agit-il ?Anti-offshore rules: they tax you at home on your foreign company's profits, even if nothing was distributed. Where they exist, offshore setups get tricky.
Source et informations complémentairesno controlled foreign corporation regime · foreign-source corporate income out of scope
04.2 Withholding tax · non-resident
WHT · dividends
15%
read moreClose
De quoi s’agit-il ?The cut this country takes when it sends dividends, interest or royalties abroad. Tax treaties can shrink it; blacklists can inflate it.
Source et informations complémentairesnon-resident outbound
WHT · interest
15%
read moreClose
Source et informations complémentairesnon-resident outbound
WHT · royalties
15%
read moreClose
Source et informations complémentairesnon-resident outbound
Tax-haven WHT
15%
read moreClose
Source et informations complémentairespenalty rate · blacklisted destinations
04.3 Treaty network
Treaties signed
3
read moreClose
De quoi s’agit-il ?Deals with other countries to avoid double taxation and cut withholding taxes. The bigger the network, the easier your money moves across borders.
Source et informations complémentairesactive
Treaties pending
3
read moreClose
Source et informations complémentairesin negotiation
Tax treaty network
origin · PY 0% > 0% no treaty
⌖
Inspect a country
Hover any country on the map to read its withholding-tax treaty with PY.
Country Status Dividends Interest Royalties
∅ // no treaties match
treaties /

Easy to come and go?

Long story short: LITTLE.
Coming and going from Paraguay costs you nothing worth mentioning. Territorial regime (foreign income stays foreign), no exit tax at the door.

You show up with your stuff, you leave with your stuff, plus whatever you earned abroad in between. Borders the way they should all work.

05.1 Exit & dual nationality
Exit tax
NONE
read moreClose
De quoi s’agit-il ?What the country charges you for leaving: tax on your unrealized gains, as if you'd sold everything at the border. Here you'll see if it exists and when it triggers.
Source et informations complémentairesno triggers active · residence change tax-free · no deemed-disposal mechanism
Dual citizenship
ALLOWED
read moreClose
Source et informations complémentairesnaturalised citizens may keep their existing nationality
05.2 Citizenship paths
Residence
3 years
read moreClose
Source et informations complémentairesavailable path to naturalisation
Marriage
—
read moreClose
Source et informations complémentairesnot available
Birth
jus soli
read moreClose
Source et informations complémentairesavailable path to naturalisation
Descent
1 gen
read moreClose
Source et informations complémentairesavailable path to naturalisation
Investment
—
read moreClose
Source et informations complémentairesnot available

Is your money watched?

Long story short: NO.
Foreign tax offices see next to nothing of what you do in Paraguay: it has signed few exchange frameworks.

But the corporate registries are public: your shareholdings and directorships are one search away for anyone curious. Invisible from abroad, on display at home.

Multilateral reporting frameworks 1/9 active · 2 pending
CRS
—
CARF
—
FATCA
—
MLI
—
BEPS
—
MAAC
2021
GLOBAL FORUM
—
EOIR
—
CRYPTO TRAVEL RULE
—

Is it blacklisted?

Long story short: NO.
Paraguay sits on no major blacklist, though it's outside the FATF club.

Some counterparties will run a bit of extra due diligence out of habit, but there's no formal stigma: you won't get hassled for dealing with it.

Blacklist exposure Clear everywhere
EMBARGO
un / us / eu sanctions
FATF
grey / black list
EU
non-cooperative list
FRANCE
ETNC list
SPAIN
tax-haven list
PORTUGAL
favourable regimes
BRAZIL
low-tax list

Do you feel free there?

Long story short: PARTLY.
Paraguay sits in the middle band of the RSF press-freedom index (rank #84): civil society functions, but the walls are real and you'll learn fast where they stand.

Crypto lives in the standard regulated tier.

08.1 Press freedom
Press freedom · RSF index
84/180
read moreClose
De quoi s’agit-il ?The RSF world ranking of press freedom. A good proxy for censorship and civil liberties. The lower the rank, the freer the press.
Source et informations complémentairesscore 56 · ↑ 31 ranks year-on-year
Central bank digital currencyi
Program Status Cross-border Sources
Paraguay CBDC
Central Bank of Paraguay
 RESEARCH — announce →
programs 1

Connected to the world?

Long story short: POORLY CONNECTED.
The two rails that matter are both dead in Paraguay. Stripe won't onboard you, so card payments mean a foreign structure or a local processor with its own rules. Amazon doesn't deliver either.

Some secondary services run (4/11), but for an online business this is swimming against the current.

Accept payments 2/6 available
Stripe
card payments
PayPal
wallet payments
Adyen
enterprise psp
Mollie
eu payments
GoCardless
direct debit
Paddle
merchant of record
Bank and move money 1/3 available
Wise
multi-currency
Revolut
personal banking
Revolut Business
business banking
Buy and sell on Amazon 1/2 available
Amazon
consumer delivery
Amazon Seller
marketplace selling
SEE ALSO

Other jurisdictions worth comparing

Picked by similarity of strategic profile to Paraguay. No editorial ranking — neighbours in the same scoring space.

PROFILE-ADJACENT Same shape, comparable overall friction.
Kosovo XK → Guatemala GT → Albania AL →
NOTABLY MORE FAVORABLE Same family of strategies, higher total score.
United Arab Emirates AE →
NOTABLY LESS FAVORABLE Same family of strategies, lower total score.
Albania AL → Costa Rica CR → North Macedonia MK →