Guide for investors
Why invest in Paraguay? Guide for investors 2026
Paraguay is no longer a niche option — it has become one of South America's most competitive destinations. A low tax burden, MERCOSUR access and stability position it as an attractive hub for companies and capital. This guide summarizes why.
Contents
Low tax burden
Paraguay's strongest argument is its fiscal simplicity. General rates are 10% for VAT, corporate income tax (IRE) and personal income tax (IRP). On a continent where tax pressure tends to be high and complex, this framework is a concrete advantage for any project.
| Tax | General rate |
|---|---|
| VAT | 10% |
| IRE — corporate income tax | 10% |
| IRP — personal income tax | 8% to 10% |
MERCOSUR access
From Paraguay you gain preferential access to the MERCOSUR market, which brings together hundreds of millions of consumers. For export-oriented or regional companies, setting up in Paraguay means operating within a bloc with trade agreements and logistics corridors connecting Argentina, Brazil, Uruguay and Bolivia.
Investment regimes
Beyond the low general tax burden, Paraguay offers specific regimes that can substantially improve the equation depending on the project type:
Law 7548/25 (formerly Law 60/90)
An investment promotion regime that grants incentives to projects meeting certain conditions, especially regarding capital goods.
Maquila regime
Designed for export-oriented production, with very favorable tax treatment on the value added in the country.
Free trade zones
Areas with customs and tax benefits for international trade and logistics operations.
Stability and openness to foreign capital
Paraguay has maintained sustained macroeconomic stability for years, with growth and fiscal discipline. Added to this is a framework open to foreign capital: a foreign person or company can own 100% of a company, with no need for a local partner. That combination of predictability and openness is uncommon in the region.
Which profiles benefit most?
- Export-oriented companies looking for a competitive base in MERCOSUR.
- Entrepreneurs and professionals who value a low tax burden and an agile setup.
- Investors seeking to diversify with predictability and clear rules.
- Service companies that can operate regionally from an efficient hub.
How to get started
The usual path combines incorporating the company with processing the owner's residency, plus the accounting and operational setup. Doing it in a coordinated way reduces time and avoids mistakes. The ideal starting point is a diagnosis that defines the structure, regime and steps based on your goal.
Thinking of investing in Paraguay?
At Desembarco Paraguay we integrate legal, accounting, immigration, foreign trade and real estate matters into a single team. Take our free diagnosis and get a preliminary analysis of your case, no commitment.
Get a free diagnosisFrequently asked questions
Why is Paraguay attractive for investment?
It combines a low tax burden (10% general), MERCOSUR access, stability and incentive regimes such as Law 7548/25, maquila and free trade zones.
What taxes are paid?
The main ones have a general rate of 10%: VAT, IRE (corporate income tax) and IRP (personal income tax).
Can a foreigner invest?
Yes. A foreigner can own 100% of a company, with no local partner.
This guide is for general informational purposes only and does not constitute financial, legal or tax advice. Each case should be evaluated individually.