Countries › Paraguay › Guide › 2. Macro and country context › Paraguay's political system and how laws are made: what investors need to know

Paraguay's political system and how laws are made: what investors need to know

Argentina. For full detail on Argentina, go to The Argentine Thread.

Last verified: 2026-10-28 · Status: Stable

Paraguay is a presidential republic under the 1992 Constitution: a President elected for a single five year term with no reelection, a two chamber Congress (at least 45 senators and 80 deputies) elected at the same time for five years, and a nine member Supreme Court. Taxes, loans, concessions and treaties all need a law of Congress, and bills the Executive does not veto in time are promulgated automatically. The current term runs from 15 August 2023 to 15 August 2028, so the next general election falls between 17 April and 17 May 2028 under the constitutional window.

USD figures use PYG 5,868.31 per US dollar, the Banco Central del Paraguay reference quotation for 28 October 2026, retrieved on the verification date, unless another rate is named (the MEF budget assumptions of PYG 7,545 average for 2025 and PYG 6,458 for 2027 are labeled where used). Conversions are for orientation only.

Key facts

Presidential term (single term, no reelection)	5 yearsConstitución art. 229, as of 1992-06-20 · in force
Start of the current presidential term	2023-08-15 dateConstitución art. 229; TSJE election of 30 April 2023, as of 2023-08-15 · in force
End of the current presidential term	2028-08-15 dateConstitución art. 229, as of 2023-08-15 · in force
Last general election (President, Congress, governors)	2023-04-30 dateTSJE convocation of the 2023 national elections, as of 2023-04-30 · in force
Next general election, constitutional window (90 to 120 days before 15 August 2028)	2028-04-17 to 2028-05-17 date rangeConstitución art. 230, as of 2026-10-28 · pending
Senate seats (constitutional minimum, single national district)	45 seatsConstitución art. 223, as of 1992-06-20 · in force
Senate term	5 yearsConstitución art. 187, as of 1992-06-20 · in force
Chamber of Deputies seats (constitutional minimum, departmental districts)	80 seatsConstitución art. 221, as of 1992-06-20 · in force
Chamber of Deputies term	5 yearsConstitución art. 187, as of 1992-06-20 · in force
Days each chamber has for an urgent Executive bill	30 daysConstitución art. 210, as of 1992-06-20 · in force
Majority to override a presidential veto	Absolute majority in each chamber ruleConstitución art. 208 and art. 209, as of 1992-06-20 · in force
Longest period before an unvetoed bill is promulgated automatically (bills over 20 articles)	20 business daysConstitución art. 205, as of 1992-06-20 · in force
Approval of a constitutional amendment	Absolute majority in each chamber plus referendum ruleConstitución art. 290, as of 1992-06-20 · in force
Expropriation compensation	Prior payment of fair compensation, by specific law ruleConstitución art. 109, as of 1992-06-20 · in force
Supreme Court justices	9 membersConstitución art. 258, as of 1992-06-20 · in force

The rule

1. The people exercise public power through the vote, and government is exercised by the Legislative, Executive and Judicial powers in a system of independence, balance, coordination and mutual control. No power may give itself or another extraordinary powers or the sum of public power.Constitución Nacional de la República del Paraguay (1992, with the 2011 amendment to art. 120), Art. 3, 1992-06-20 official text · verified 2026-10-28

2. Congress has two chambers. The Chamber of Deputies represents the departments: at least 80 members elected in departmental districts, with Asunción as its own district and at least one deputy per department; the Superior Electoral Court (Tribunal Superior de Justicia Electoral, TSJE) sets the seats per department before each election by number of voters. The Senate has at least 45 members elected in a single national district. Senators and deputies are elected at the same time as the President, serve five years from 1 July and may be reelected. Ordinary sessions run from 1 July to 30 June with a recess from 21 December to 1 March.Constitución Nacional de la República del Paraguay (1992, with the 2011 amendment to art. 120), Art. 182, art. 184, art. 187, art. 221 and art. 223, 1992-06-20 official text · verified 2026-10-28

3. The President and Vice President are elected jointly and directly by simple majority, with no runoff, in general elections held between 90 and 120 days before the current term expires. They serve five years that cannot be extended, from 15 August after the election, and the President may not be reelected in any case. Governors of the departments are also elected for five years in elections that coincide with the general elections and may not be reelected.
Example: The last general election was held on 30 April 2023 (TSJE convocation), so the current presidential term runs from 15 August 2023 to 15 August 2028 and the current Congress from 1 July 2023 to 30 June 2028. The 90 to 120 day window puts the next general election between 17 April and 17 May 2028.Constitución Nacional de la República del Paraguay (1992, with the 2011 amendment to art. 120), Art. 229, art. 230 and art. 161, 1992-06-20 official text · verified 2026-10-28

4. Laws can start in either chamber, on the proposal of legislators, the Executive, a popular initiative or the Supreme Court, and every bill needs a statement of reasons. A bill passed by both chambers is sanctioned and the Executive promulgates and publishes it within five days. If the Executive does not object within 6 business days (bills of up to 10 articles), 12 business days (11 to 20 articles) or 20 business days (more than 20 articles), the bill is promulgated automatically. A bill approved by the chamber of origin is deemed approved by the other chamber if it does not act within three months (the clock stops from 21 December to 1 March). A law binds only once promulgated and published.Constitución Nacional de la República del Paraguay (1992, with the 2011 amendment to art. 120), Art. 203, art. 204, art. 205, art. 211 and art. 213, 1992-06-20 official text · verified 2026-10-28

5. The President may veto a law in whole or in part. A partial veto goes back to the chamber of origin and then the other chamber; if both reject the objections by absolute majority, the original text stands. If the objections are accepted, both chambers may by absolute majority sanction the part not objected to. A total veto is overridden if both chambers confirm the bill by absolute majority. Each chamber must deal with objections within 60 days. If the chambers disagree, the bill cannot be presented again in that year's sessions.Constitución Nacional de la República del Paraguay (1992, with the 2011 amendment to art. 120), Art. 208, art. 209 and art. 238 numeral 4, 1992-06-20 official text · verified 2026-10-28

6. The Executive may ask for urgent treatment of its bills: each chamber then has 30 days, and the bill is approved if not rejected in time. Only three urgent bills are allowed per ordinary legislative period unless the chamber of origin accepts more by two thirds, and either chamber may lift urgency by two thirds. Chambers may delegate bills to committees by absolute majority, but never the budget, codes, international treaties, tax bills or laws on the organization of the State.Constitución Nacional de la República del Paraguay (1992, with the 2011 amendment to art. 120), Art. 210 and art. 215, 1992-06-20 official text · verified 2026-10-28

7. Every tax must be created by law, and only a law may define the taxable matter, the taxpayers and the nature of the tax system. The same taxable event may not be taxed twice, and the State may sign treaties to avoid double taxation on the basis of reciprocity. Congress legislates on taxes, passes the annual budget, approves or rejects treaties and the State's loans, and authorizes for a fixed time concessions to run national public services or to extract and process minerals and hydrocarbons.Constitución Nacional de la República del Paraguay (1992, with the 2011 amendment to art. 120), Art. 179, art. 180 and art. 202 numerals 4, 5, 9, 10 and 11, 1992-06-20 official text · verified 2026-10-28

8. Any bill with a fiscal, budget or financial impact for the State must have a technical report from the finance ministry (now the Ministerio de Economía y Finanzas, MEF), delivered within 15 days of a request by a committee or chamber; if the report is not delivered in time, the ministry is taken to agree with the bill.Ley Nº 5098/2013 De Responsabilidad Fiscal, Art. 12, 2013-10-29 official text · verified 2026-10-28

9. The Constitution is the supreme law. It is followed, in this order, by international treaties, conventions and agreements that have been approved and ratified, then laws of Congress, then lower ranking rules. A treaty becomes part of domestic law once approved by a law of Congress and its ratification instruments are exchanged or deposited, so a ratified investment or tax treaty ranks above ordinary laws.Constitución Nacional de la República del Paraguay (1992, with the 2011 amendment to art. 120), Art. 137 and art. 141, 1992-06-20 official text · verified 2026-10-28

10. Private property is guaranteed and inviolable, with content and limits set by law in line with its economic and social function. Expropriation is allowed only for public utility or social interest, decided by a specific law in each case, with prior payment of fair compensation agreed or set by a court, except for unproductive large estates destined for agrarian reform. The State owns hydrocarbons and solid, liquid and gaseous minerals in their natural state, except stone, earth and limestone materials.Constitución Nacional de la República del Paraguay (1992, with the 2011 amendment to art. 120), Art. 109 and art. 112, 1992-06-20 official text · verified 2026-10-28

11. The President, Vice President, ministers, Supreme Court justices, the Attorney General (Fiscal General del Estado), the Ombudsman, the Comptroller and members of the TSJE may be removed by impeachment (juicio político) for poor performance of duties or crimes: the Chamber of Deputies accuses by two thirds and the Senate convicts by two thirds. The Supreme Court has nine members organized in chambers, one of them constitutional.Constitución Nacional de la República del Paraguay (1992, with the 2011 amendment to art. 120), Art. 225 and art. 258, 1992-06-20 official text · verified 2026-10-28

12. The Constitution can be changed in two ways. An amendment (enmienda), possible three years after promulgation, needs an absolute majority in each chamber and then a referendum called by the TSJE within 180 days; it cannot be used for rules on how State powers are elected or composed, the length of terms or their powers, which need a full reform. A reform (reforma), possible ten years after promulgation, needs a declaration of necessity by two thirds of each chamber and an elected constitutional convention.Constitución Nacional de la República del Paraguay (1992, with the 2011 amendment to art. 120), Art. 289 and art. 290, 1992-06-20 official text · verified 2026-10-28

Event	Date	Rule
General election (President, Congress, governors)	30 April 2023	TSJE convocation; art. 230
Current Congress takes office	1 July 2023	Art. 187
Current President takes office	15 August 2023	Art. 229
Annual Congress recess	21 December to 1 March	Art. 184
President's annual report to Congress	1 March each year	Art. 184
Budget bill due in Congress	1 September each year	Art. 216
Next general election window	17 April to 17 May 2028	Art. 230 (90 to 120 days before 15 August 2028)
Next Congress and President take office	1 July 2028 and 15 August 2028	Art. 187 and art. 229

Constitutional political calendar, 2023 to 2028 (Constitución art. 187, 229 and 230; TSJE)

Decision	Majority	Article
Pass an ordinary law	Approval by both chambers, then promulgation	Art. 204
Override a total or partial veto	Absolute majority in each chamber	Art. 208 and 209
Lift urgent treatment of a bill	Two thirds of either chamber	Art. 210
Reject the whole budget bill	Two thirds in each chamber	Art. 216
Impeach the President or a justice	Two thirds of Deputies to accuse, two thirds of the Senate to convict	Art. 225
Constitutional amendment	Absolute majority in each chamber plus referendum	Art. 290
Declare a constitutional reform necessary	Two thirds of each chamber	Art. 289

Majorities an investor should know (Constitución)

Bill size	Executive deadline to object
Up to 10 articles	6 business days
11 to 20 articles	12 business days
More than 20 articles	20 business days

When an unvetoed bill becomes law automatically (Constitución art. 205)

Worked example

Timing a tax change. A tax reform bill of 40 articles sent by the Executive with an urgency request must be dealt with by the first chamber within 30 days and by the second within the following 30 days (art. 210). Once sanctioned, the Executive has 20 business days to veto it before it is promulgated automatically (art. 205), and it binds only after publication (art. 213). Tax bills cannot be delegated to a committee (art. 215).
Treaty protection. A bilateral investment treaty or a double tax treaty signed by the Executive needs a law of Congress (art. 202 numeral 9) and the exchange or deposit of ratification instruments before it forms part of domestic law, where it then ranks above ordinary laws (art. 137 and 141). Check the approving law number and the date of entry into force, not the signing date.
Concessions. A concession to run a national public service or to extract minerals or hydrocarbons needs authorization by a law of Congress for a fixed period (art. 202 numeral 11), so model the parliamentary timetable, including the 21 December to 1 March recess, into the project schedule.

Step by step

1. Map which approvals your project needs from Congress (tax change, concession, State loan, treaty) using art. 202 of the Constitution, and which only need an Executive decree.
2. Track bills on the Congress legislative information system (SILpy) and check published laws on the Biblioteca y Archivo Central del Congreso (BACN) site; a sanctioned bill is not yet law until promulgated and published.
3. Count veto and automatic promulgation deadlines in business days by the number of articles of the bill (art. 205).
4. Put 1 March (President's report), 1 September (budget bill) and the 2028 election window in your calendar; see /calendar/.
5. For any bill with fiscal impact, look for the MEF technical report under Ley Nº 5098 art. 12; silence for 15 days counts as agreement.
6. For Argentina linked structures (binational dams, river trade, FX or tax questions), check the Argentine political and legal side separately in the Argentine guide.

Common traps

Assuming a sanctioned bill is in force. A law binds only after promulgation and publication (art. 213); check the promulgation date on the BACN page.
Missing automatic approval. Bills not vetoed in 6, 12 or 20 business days are promulgated automatically (art. 205), and a second chamber that sits on a bill for three months is deemed to approve it (art. 211).
Expecting a runoff. The President is elected by simple majority in a single round (art. 230).
Reading a decree as enough for taxes. Every tax and its taxable matter and taxpayers must be set by law (art. 179); a decree can only regulate.
Ignoring the recess. The three month deadline for the second chamber stops between 21 December and 1 March (art. 211).
Counting on reelection or term extension. The presidential term cannot be extended and the President cannot be reelected (art. 229); changing that requires a full constitutional reform, not an amendment (art. 290).

Sources

← Paraguay economy at a glance: central bank, inflation target, fiscal rule and key figuresParaguay public finances: the budget cycle, the fiscal rule, debt structure and the 2027 budget bill →

Get rule changes weekly

Free. One email a week from The LatAm Thread.

One more step after you press the button: we take you to Substack, where your email is already filled in. Confirm there to start. No spam, unsubscribe anytime, we never share your address. By subscribing you agree to the privacy policy.