Low taxes in the middle of the continent

Of all our destinations, Paraguay is the one clients most often ask about for tax reasons. The system rests on a simple ten per cent principle — for corporation tax, personal income tax and VAT alike — and applies largely on a territorial basis, that is, to income from Paraguayan sources.

Then there is cheap energy: the Itaipú dam on the Brazilian border is among the largest in the world, and Paraguay generates virtually all its electricity from water, with a substantial surplus for export. For energy-intensive operations that is a decisive argument.

What Paraguay offers

• A simple, low-rate tax system.
• Cheap electricity from its own hydropower.
• Accessible permanent residence and a direct route to citizenship.
• Fertile land and Mercosur membership.

What to watch

Paraguay is landlocked, so exports go through its neighbours’ ports and the logistics reflect that. The domestic market is small and the administration slower than a European would expect. Residence requirements have tightened in recent years — more documentation is needed now than before, which is worth knowing in advance.

We guide you through the residence process, the company formation and the tax set-up, so that it also works against the rules of your home country.