Setting Up a Company in Paraguay: Keys to the Export Boom and the Maquila Regime in 2026

Setting up a company in Paraguay has established itself as the most strategic option for international investors in 2026. The latest official data published by the Central Bank of Paraguay (BCP) reveals an extraordinary growth of 25.2% in cumulative exports through July of this year, reaching a figure of USD 12,133.7 million. This dynamism is not a coincidence; it responds to a solid productive structure and a regulatory framework designed to attract foreign capital.

TL;DR: The Essentials of Regulations and Foreign Trade

• Paraguayan exports are growing 25.2% year-on-year, driven by the agribusiness sector and the Maquila regime.
• The Maquila regime recorded a 32.1% jump, establishing itself as the preferred platform for foreign industries.
• The trade balance maintains a surplus of USD 679.1 million, which guarantees the country’s exchange and macroeconomic stability.

What does this mean for you as an entrepreneur? Paraguay is no longer just a low-cost option. It is a logistics and industrial hub in full development within Mercosur, backed by a solid trade surplus and friendly fiscal policies.

Growth Radiography: Soy, Derivatives, and Manufacturing

The behavior of Paraguayan exports demonstrates that the country has successfully diversified its production matrix. While the export of raw soybeans led the advance with revenues of USD 2,648.6 million (a 59% increase), local industrialization is advancing by leaps and bounds.

Soybean milling also reported excellent numbers. Sales of soybean oil generated USD 432.3 million (+23.1%), while soybean meal added USD 432.2 million (+18.7%). This proves that Paraguay has the necessary infrastructure to process raw materials on a large scale and export products with high value-added.

However, the data that really catches the eye of international investors is the performance of manufacturing protected under specific incentives.

The Maquila Regime: The Great Magnet for Foreign Investment

Exports under the Maquila regime reached USD 858.7 million, reflecting a 32.1% increase compared to the previous year. This system is one of the greatest attractions for those who decide to set up a company in Paraguay.

What does this benefit consist of? Maquila companies import raw materials, machinery, and components with duty suspensions, process the product within Paraguayan territory, and then export it with a very low tax burden.

Under the Maquila Law, operations are exempt from any national, departmental, or municipal taxes. Instead, a single tax of 1% is applied to the value-added within Paraguayan territory or to the gross billing, whichever comes first.

This allows North American, European, and regional corporations to optimize their operational costs legally and ethically, using Paraguay as their distribution platform to the massive Brazilian market and the rest of Latin America.

Imports and Trade Balance Solidity

On the import side, Paraguay registered a 12.8% increase, reaching USD 11,454.6 million. This dynamism is mainly due to the acquisition of consumer goods and intermediate inputs that fuel internal economic activity.

Despite this increase in foreign purchases, Paraguay’s trade balance closed with a surplus of USD 679.1 million. Maintaining a positive trade balance is an excellent indicator of macroeconomic health. For the foreign investor, this translates into a stable local currency (the Guarani) against the dollar, low inflation, and a predictable financial environment.

Furthermore, the country’s low general tax burden, regulated under a simplified structure of taxes in Paraguay with rates of 10% for Corporate Income Tax (IRE) and Value Added Tax (VAT), facilitates profit retention and capital reinvestment.

The ParaguayWay Analysis: Why Macroeconomic Growth is Your Entrance Signal

The excellent performance of Paraguayan foreign trade is not an isolated event. It demonstrates that the rules of the game in the country remain firm and that the environment is highly receptive to international business. However, entering a new market requires local expertise to avoid unnecessary bureaucratic hurdles.

Last week, a European plastics industry entrepreneur contacted us with a common problem. He wanted to move part of his packaging production to South America to supply clients in São Paulo. He was overwhelmed by the heavy machinery import requirements and the bureaucracy of local registrations.

Through our 360º advisory service, we not only immediately managed his residency in Paraguay to secure his legal status in the country, but we also structured his new corporation under the Maquila regime. This allowed him to import his assembly line duty-free and start billing with the 1% tax rate. The process was efficient because we knew exactly which offices to approach.

Is it complex to start the process? Not if you have the right support. The key is to simultaneously coordinate the opening of corporate bank accounts, regulatory compliance with the Ministry of Industry and Commerce, and the obtainment of visas for your key technical staff.

If you are looking to protect your assets, expand your manufacturing capacity, or simply benefit from one of the most competitive tax systems on the continent, this is the opportune moment. Paraguay’s economic growth confirms that the conditions are set to take the step with total legal security.

To analyze the particularities of your business and design a custom implementation strategy, let’s analyze your relocation case with no obligation and prepare your corporate entry with total legal certainty.