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.
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.
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.
01.1Income tax
Personal income tax
8 → 10%
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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 – 8,400
8%
8,400 – 25,200
9%
25,200 +
10%
01.2Tax 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
exists here
Income tax simulatori
If you earn
a year, you will pay
.
Roughly
effective, with a marginal rate of
.
Will your wealth be taxed?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.
02.1Investment income
Capital gains
8%
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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%
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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%
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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
02.2Wealth & estate
Wealth tax
NONE
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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
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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.
02.3Crypto
Crypto · tax regime
UNREGULATED
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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
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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
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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?YES.
Corporate tax in Paraguay sits at a low10%, 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.
03.1Rates
Corporate tax
10%
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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%
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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.
03.2Regime & registry
IP Box · Patent Box
NONE
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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
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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
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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)
03.3Incorporation 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 252
Professional Incorporation Service (Legal, RUC, Rep)
USD 3,780
Total
USD 4,032
A good fit for a holding?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.
04.1Substance & exemptions
Territorial · individuals
TERRITORIAL
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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
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Source et informations complémentairesworldwide corporate taxation
Participation exemption
100%
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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
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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
04.2Withholding tax · non-resident
WHT · dividends
15%
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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%
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Source et informations complémentairesnon-resident outbound
WHT · royalties
15%
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Source et informations complémentairesnon-resident outbound
Tax-haven WHT
15%
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Source et informations complémentairespenalty rate · blacklisted destinations
04.3Treaty network
Treaties signed
3
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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
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Source et informations complémentairesin negotiation
Tax treaty network
origin · PY0%> 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
Easy to come and go?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.
05.1Exit & dual nationality
Exit tax
NONE
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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
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Source et informations complémentairesnaturalised citizens may keep their existing nationality
05.2Citizenship paths
Residence
3 years
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Source et informations complémentairesavailable path to naturalisation
Marriage
—
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Source et informations complémentairesnot available
Birth
jus soli
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Source et informations complémentairesavailable path to naturalisation
Descent
1 gen
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Source et informations complémentairesavailable path to naturalisation
Investment
—
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Source et informations complémentairesnot available
Is your money watched?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?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 exposureClear 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?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.
08.1Press freedom
Press freedom · RSF index
84/180
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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
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 payments2/6 available
Stripe
card payments
PayPal
wallet payments
Adyen
enterprise psp
Mollie
eu payments
GoCardless
direct debit
Paddle
merchant of record
Bank and move money1/3 available
Wise
multi-currency
Revolut
personal banking
Revolut Business
business banking
Buy and sell on Amazon1/2 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.
