Taxes in Paraguay: your complete guide for
Discover the benefits of the territorial tax system and how to protect your global wealth with legal certainty in .
Paraguay tax calculator
Project your savings based on the territoriality system in effect in . Enter your estimated annual earnings in US dollars (USD).
🌎 Foreign source (0%)
🇵🇾 Paraguayan source (Tax)
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Paraguay’s territorial system is your best ally. We start your tax residency process remotely or in person.
Request advice nowSummary of tax advantages in
The territorial tax system in
The greatest competitive advantage of Paraguay for expats and international investors is its tax system based on territoriality. Unlike most Western countries, Paraguay does not tax income generated outside its borders.
Foreign source income: 0%
If you are a tax resident in Paraguay but your income comes from services provided abroad, international financial investments, or dividends from foreign companies, your tax rate in Paraguay is legally 0%.
This feature makes the country one of the most efficient destinations in the world for digital nomads, international consultants, and global asset holders in .
The 10-10-10 tax system
For income generated within the national territory, Paraguay maintains one of the simplest and lowest schemes in the world in :
IRE
Corporate income tax for local businesses.
IRP
Personal income tax for residents.
VAT
Value added tax (VAT).
Tax burden comparison in
To understand Paraguay’s potential, it is necessary to compare its structure with traditional high-tax jurisdictions. Optimization is immediate from the first day of residency.
| Tax concept | High-tax country | Paraguay 🇵🇾 |
|---|---|---|
| Income generated abroad | 20% – 45% | 0% (Exempt) |
| Corporate tax | 19% – 30% | 10% |
| Wealth / Net worth tax | 0.5% – 3.5% | Does not exist |
| Cryptocurrency gains (Int.) | 19% – 26% | 0% |
* Data based on average maximum OECD rates compared to Paraguay’s Law 6380/19.
Taxes for individuals (IRP)
The Personal Income Tax in Paraguay is divided into two main categories that affect those who decide to move their tax residency:
- Income from personal services: Applies to salaries and professional services performed within Paraguay.
- Capital gains: Taxes local dividends, interest, or rents from Paraguayan sources at a fixed rate of 8%.
“Paraguay’s fiscal sovereignty is a fundamental pillar for attracting foreign capital and global talent.” — DNIT (Tax Revenues)
| Concept | Foreign source | Paraguayan source |
|---|---|---|
| Professional services | Exempt (0%) | 8% – 10% |
| Stock trading / Crypto | Exempt (0%) | 8% |
| Dividends | Exempt (0%) | 8% (IDU) |
Tax residency certificate in
Obtaining legal residency is the first step, but to stop being a taxpayer in your country of origin, you will need the Tax Residency Certificate issued by the DNIT.
Valid ID card
Have a Paraguayan identity document (Cédula) and permanent residency.
RUC registration
Be registered in the Single Taxpayer Registry to pay taxes locally.
Real nexus
Demonstrate a center of vital interests or physical presence in the country.
Timeline of your tax transition
Month 1: Obtaining legal residency and Paraguayan ID card.
Month 2: RUC registration and appointment of a tax representative.
Month 4: Issuance of the Tax Residency Certificate for .
Frequently asked questions
Is there a wealth tax in Paraguay?
No. In , Paraguay does not apply taxes on net worth, nor on estates or inheritances.
How are my cryptocurrencies taxed?
If the gains come from international platforms, they are considered foreign income and are exempt (0%).
Legal notice: The information contained on this page regarding the Paraguayan tax system in is for informational purposes only and does not constitute tax, legal, or financial advice. Laws may vary. We strongly recommend a personalized consultation with our experts before making decisions based on this content.