Paraguay Tax Guide
This page includes citations to the sources used for this entry. Always verify with official sources before making decisions.
Personal Income Tax
Tax Residency
Income Tax Rates
Foreign Income Treatment
Investment Income
10% on Paraguay assets
Wealth & Inheritance
Practical Notes
Lowest personal tax rate in South America. Mercosur member. Low cost of living.
Business & Corporate Tax
Corporate Income Tax
Withholding Taxes
VAT / GST
Compliance & Substance
Notable Regimes
- Maquiladora regime
- Free zones
Data Sources
Last updated: January 2025. Always verify with official sources before making decisions.
FAQ
What is the personal income tax rate in Paraguay?
Paraguay has a top personal income tax rate of 10%. The tax structure is: Flat 10% on Paraguay-sourced income. See the detailed breakdown above and verify with official sources.
Do I need to pay tax on foreign income in Paraguay?
Paraguay uses a territorial system for foreign income. Foreign income generally not taxed
What are the residency requirements for Paraguay?
Tax residency in Paraguay generally requires 120 days of physical presence. 120 days or center of vital interests. Always verify current rules with official sources.
Is there a wealth tax in Paraguay?
No, Paraguay does not have a wealth tax. No wealth tax
What is the corporate tax rate in Paraguay?
The corporate tax rate in Paraguay is 10%. 10% corporate tax rate