Investment regimes
Maquila Regime in Paraguay: how it works
The maquila regime is one of Paraguay's most attractive schemes for export-oriented production. It allows you to operate with a very low tax burden on local value added. Here we explain how it works and who it's best suited for.
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What is the maquila regime?
The maquila regime allows a company established in Paraguay to produce goods or provide services aimed mainly at export, under an especially favorable tax scheme. It's one of the pillars of the country's industrial and services promotion policy.
How it works
In simple terms, a parent company abroad contracts a maquila company in Paraguay to produce goods or provide services. The maquila company can temporarily import inputs and capital goods used in the process, transforms or adds value within the country, and exports the result. Taxation is mainly levied on the locally generated value added, at a very low rate.
Advantages
- Reduced taxation on the value added generated in the country.
- Temporary import of inputs and capital goods used in the production process.
- Access to MERCOSUR and regional logistics corridors.
- Competitive costs for setup and operation.
Which companies is it best suited for?
The regime is common in sectors such as manufacturing, assembly, auto parts, textiles and export-oriented services. If your company produces goods or provides services sold mostly outside Paraguay, the maquila regime can significantly improve your cost structure.
General requirements
Access requires project approval and compliance with the regime's conditions. In general terms it involves setting up or adapting a local company, submitting a maquila program and obtaining the relevant authorizations. Given its complexity, it's best structured with specialized advice.
Does your project qualify for maquila?
At Desembarco Paraguay we structure maquila and foreign trade projects end to end. Take our free assessment and we'll evaluate your case, no strings attached.
Get your free assessmentFrequently asked questions
What is the maquila regime in Paraguay?
A special regime that allows producing goods or providing services for export with favorable tax treatment on local value added.
What tax advantages does it offer?
Reduced taxation on value added in Paraguay and facilities for the temporary import of inputs and capital goods.
Which companies can use it?
Companies with export-oriented production or services: manufacturing, assembly, services, auto parts, among others.
This guide is for general informational purposes only and does not constitute specific legal or tax advice. Each project should be evaluated individually.