Paraguay
| 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. |
Will Paraguay tax what you earn?
YES, BUT LIGHTLY. Personal income tax in Paraguay is light (10% at the top), and the territorial regime narrows the catchment further: foreign-source income falls outside. Friendly headline, friendlier design.
Will Paraguay tax what you own?
YES, BUT LIGHTLY. Capital gains are taxed at a low 8% in Paraguay, but the country also applies an annual wealth tax (top rate 10%). Over a long holding period, the recurring charge can outweigh the realisation tax entirely.
Is it easy to run a company in Paraguay?
YES. Corporate tax in Paraguay sits at a low 10%, with VAT around it. Setting up and running a company is cheap; the rate won't be what kills a venture here.
Is Paraguay good for your holding company?
YES, BUT THIN. Paraguay runs a full participation exemption (100% on qualifying dividends and gains), but its thin treaty network (6 agreements) limits the geographies where the holding can sit without taking a withholding hit on the source side. Workable for regional structures, not for global ones.
| Country | Status | Dividends | Interest | Royalties |
|---|---|---|---|---|
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| ∅ // no treaties match | ||||
What does it cost to come and go from Paraguay?
LITTLE. Coming and going from Paraguay is cheap. The country runs a territorial system (foreign income stays foreign), and there's no exit tax on departure. You leave with what you came in with, plus whatever you earned abroad while you were here.
Will Paraguay protect your privacy?
YES. Paraguay has signed few exchange frameworks, so foreign tax authorities won't routinely see what you do here. But corporate registries are public: ownership and directorships are queryable by anyone with a browser. Privacy from abroad, transparency at home.
Is Paraguay itself a liability?
NO. Paraguay carries no entries on any major blacklist, though it sits outside FATF membership. Counterparties may apply light extra due diligence, but no formal stigma attaches to dealing with it.
Will you feel free in Paraguay?
PARTLY. Paraguay scores in the middle band of the RSF press-freedom index (rank #84): civil society operates but the boundaries are real. Crypto sits in the standard regulated tier.
| Program | Status | Cross-border | Sources |
|---|---|---|---|
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Paraguay CBDC
Central Bank of Paraguay
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RESEARCH | — | announce → |
Other jurisdictions worth comparing
Picked by similarity of strategic profile to Paraguay. No editorial ranking — neighbours in the same scoring space.