Paraguay

Paraguay is a landlocked South American country (capital: Asunción) with two official languages (Spanish and Guaraní). For international tax planning, it is most often discussed in the context of a territorial-style income tax approach and comparatively low headline rates on locally sourced income.

Tax overview (high level): Paraguay's personal income tax for resident individuals is generally applied to Paraguayan-source income. PwC's country summary describes the system as taxing residents on income from a Paraguay source. Reported headline rates for the personal income tax (IRP) are low (8% to 10% depending on taxable income levels). Foreign-source income is generally treated as outside the Paraguayan income tax net, but source rules matter in practice (for example, where services are physically performed and how income is characterised).

Immigration overview: Paraguay's immigration authority is the Dirección Nacional de Migraciones (DNM). A key investor pathway is the special procedure for foreign investors under SUACE, framed by the immigration authority as a permanent residence route for investors who choose to work through SUACE (a one-stop shop for opening and formalising a business). The DNM page states the residence card is definitive but must be renewed every 10 years.

Investor pathway in brief: The SUACE Constancia del Inversionista document sets out a minimum investment of USD 70000 (or the equivalent in Guaraníes) and a minimum job creation commitment of 5 employees. Applicants then submit the investor certificate plus standard immigration documentation and pay the government fee for permanent residence.

Practical caveats: Administrative practice can change faster than high-level summaries. Always validate the current document list, fee schedule, and how investment is evidenced, especially if planning to rely on territorial sourcing. If you are structuring around foreign-source income, document the factual source position carefully.