Paraguay

WHY INVEST IN PARAGUAY?

INVESTMENT TAXATION:

Paraguay is a country that offers great investment opportunities, both for its financial advantages and for its economic stability, low tax rate and fiscal simplicity.

It offers a system of free trade, free exchange, free import and export and free movement of capital, without price controls or other restrictions. It mainly bases its economic activity on agriculture, livestock, services and trade.

The real estate market had an exponential growth in the last decades.

 

  • THE MACROECONOMIC MODEL

Paraguay has an orderly monetary policy and moderate debt. It offers advantageous conditions for economic management in the face of adverse scenarios. It benefits from low indebtedness compared to other countries in the region.

In macro, it has a stable GDP growth and low inflation (2.8% in 2019 and lower than 4% 5 years ago).

 

  • FISCAL SYSTEM

The following taxes are paid in Paraguay:

    • Income Taxes:
      • IRP. Rate at 10%. Affects individuals whose gross income exceeds 80.000.000Gs (approx. 11.200€; 11.700USD)
      • IRE. Rate at 10%. It affects Paraguayan income from economic activities that are not personal and income generated by goods, rights, obligations, acts of disposition and all the patrimonial increase in favor. It is settled by annual affidavit.
      • IDU. Rate at 8%. Individuals and 15% legal entities. It taxes income from profits, dividends or yields generated by sole proprietorships, corporations and other entities with legal status, as well as permanent establishments of entities incorporated abroad. Single and definitive payment when:

a) Shareholder or partner is a natural person resident in the country

b) Shareholder is a person or entity not resident in the country

      • INR. Rate at 15%. It taxes the income derived from the benefits obtained by individuals, legal entities and other entities not resident in Paraguay, included within the personal and corporate income. All persons and companies domiciled or incorporated abroad, which are not domiciled in the country and do not meet the conditions of residents, are taxed.

 

    • Excise taxes
      • VAT. Rate 10%. It affects the consumption capacity of the inhabitants. It is a general sales tax. It is liquidated manually and by affidavit.
      • ISC. Specific on the sale of certain products and operations carried out with selected merchandise.

 

At FeliuN&I and ExpatFeliu we want to help you.

Thanks to our experience and team, we can help you and inform you about the complete advantages of investing in a country like Paraguay.

If you need advice on how to invest in Paraguay do not hesitate to contact us.

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