World Bank Document
In 2019, the Government of Paraguay (GOP) embarked on a comprehensive tax reform to simplify and modernize its tax system. At the request of the Ministry of Finance (MOF), and building on long
In 2019, the Government of Paraguay (GOP) embarked on a comprehensive tax reform to simplify and modernize its tax system. At the request of the Ministry of Finance (MOF), and building on long
In conclusion, navigating the tax landscape in Paraguay requires careful consideration and due diligence. By addressing registration requirements,
Paraguay offers an increasingly attractive environment for doing business, with a competitive tax framework that balances simplicity and fiscal
As a member of the Southern Common Market (MERCOSUR), Paraguay adheres to regional trade agreements that harmonize tariffs among
Paraguay''s Law No. 7546/2025 boosted investment and jobs in electronics and digital equipment.
Paraguay applies minimal tax exemptions on goods and services provided through official development assistance (ODA). They actively promote consensus of overall reductions in incentives and
Learn how to navigate Paraguay''s territorial tax system and how to take advantage of it as an expat, digital nomad or remote worker.
Discover the Paraguay tax tables for 2026, including tax rates and income thresholds. Stay informed about tax regulations and calculations in Paraguay in 2026.
Paraguay stands out for its remarkably minimal tax domiciliation requirements and its unique territorial taxation system: 0% tax on foreign-source income. A distinctive feature that attracts
Value Added Tax (VAT) is the main type of indirect taxation in Paraguay. It is a tax on consumption which is applied during the production and
Paraguay territorial tax system explained: 0% tax on foreign income, 10% on local income. Understand what''s taxed, what''s exempt, and how it compares to Panama, Costa Rica, and Dubai.
Paraguay applies a mixed system for eliminating international double taxation – based on credit or exemption mechanisms – but this relief is not available for all types of foreign-source income, which
These measures serve as foundational pillars in a state strategy aimed at attracting capital, generating formal employment, and positioning Paraguay as an industrial and logistics hub in
Variation essential for identifying coefficients arises from tax and social security reforms altering tax parameters and the fact that tax schedules may not always adjust for nominal wage
Paraguay applies minimal tax exemptions on goods and services provided through official development assistance (ODA). They actively promote consensus of overall reductions in incentives and
Notably, the law expands coverage to include the services sector, reflecting Paraguay''s ambition to tap into the fast-growing digital economy and
Paraguayan tax law operates on a purely territorial basis, meaning that only income generated from activities, assets, or rights located within the national territory is subject to taxation. This principle
Explore the comprehensive overview of the Paraguayan corporate tax system, including corporate income tax rates, filing requirements, available
Paraguay tax reform in 2020: all the new taxes and rates, detailed information. Business income tax (IRE) and Paraguay Tax on Dividends and Utilities (IDU),
The first major change comes with Law No. 7547/2025, which updates the maquiladora system that has been central to Paraguay''s industrial
Paraguay''s 14.5% tax-to-GDP is 32% below LAC and 57% below OECD averages. See the full comparison, 10/10/10 rates, territorial system, and Plan B alternatives.
Learn how territorial taxation works, its benefits for expats and digital nomads, and how Paraguay implements this system to exempt foreign-source
Explore Paraguay''s tax system, including direct and indirect taxes, filing requirements for individuals and businesses, and the role of the
Paraguay''s territorial tax system is the foundation of the country''s tax appeal, but it is also the topic most likely to be oversimplified. Before planning around "0% foreign income tax," read the full territorial tax
Opportunities: Nearshoring and corridor integration. Paraguay''s low-cost, reliable hydropower, improving river-and-road links, and special regimes let manufacturers and service hubs plug into MERCOSUR
Is Paraguay''s Tax System for Expats the Best in South America? For expats looking for simplicity, low taxes, and financial freedom, Paraguay stands
Paraguay does not permit fiscal consolidation, nor does it recognise tax groups for income tax purposes. Each company is treated as a separate taxpayer and must
Three new laws have been approved as Paraguay pushes forward with its efforts to attract greater domestic and foreign investment.
Learn how Paraguay''s VAT applies to digital products in 2026, including registration, VAT rate, invoicing, & compliance tips.
Paraguay grants investors a number of tax breaks under Law 60/90, including exemptions from corporate income tax and value-added tax. Paraguay also has a temporary entry system, which
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