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Paraguay vs Argentina: how easy is it to do business

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

Last verified: 2026-10-27 · Status: Changing

Paraguay guarantees by law a free exchange regime for capital and dividends, while Argentina routes corporate dividends through Central Bank FX rules now open for profits of fiscal years from 2025. Headline taxes are lower in Paraguay: 10 percent corporate tax and 15 percent on dividends to non residents (23.5 percent combined) against a 25 to 35 percent scale plus 7 percent in Argentina, and 10 percent VAT against 21 percent. Paraguay adds a 1 percent maquila tax and 0.5 percent free zone tax, 1.7 percent inflation and two investment grade ratings, but bars nationals of neighboring countries, Argentines included, from rural land near its borders.

USD figures use PYG 5,847.90 per US dollar (Banco Central del Paraguay reference quotation, 27 October 2026) and ARS 1,541.00 per US dollar (BCRA exchange rate statistics service, 26 October 2026), both retrieved on the verification date. Conversions are for orientation only.

Key facts

Prior authorization or registration for foreign investment	None Ley 117/91 art. 4, as of 1992-01-07 · in force
National treatment for foreign investors	Yes Ley 117/91 art. 2, as of 1992-01-07 · in force
FX access for dividends abroad	Free exchange regime, no restrictions on capital or dividend remittances Ley 117/91 art. 6, as of 1992-01-07 · in force
Corporate income tax (IRE) rate	10 %Ley 6380 art. 21, as of 2019-09-25 · in force
Dividend tax (IDU) on non resident recipients	15 %Ley 6380 art. 43, as of 2019-09-25 · in force
Dividend tax (IDU) on resident recipients	8 %Ley 6380 art. 43, as of 2019-09-25 · in force
Non resident income tax (INR) rate	15 %Ley 6380 art. 76, as of 2019-09-25 · in force
VAT (IVA) general rate	10 %Ley 6380 art. 90, as of 2019-09-25 · in force
VAT (IVA) reduced rate	5 %Ley 6380 art. 90, as of 2019-09-25 · in force
Double tax treaties in force	6 treatiesDNIT treaty list, as of 2026-10-27 · in force
EAS minimum capital	None Ley 6480; MIC comparison sheet, as of 2020-01-08 · in force
EAS maximum term to pay in shares	2 yearsLey 6480 art. 10, as of 2020-01-08 · in force
EAS registration time on model articles	72 business hoursMIC comparison sheet, as of 2026-10-27 · in force
S.A. registration time through SUACE	15 business daysMIC comparison sheet, as of 2026-10-27 · in force
S.R.L. registration time through SUACE	15 business daysMIC comparison sheet, as of 2026-10-27 · in force
S.R.L. maximum number of partners	25 partnersMIC comparison sheet, as of 2026-10-27 · in force
Maquila single tax on value added or export invoice	1 %Ley 7547 art. 37, as of 2025-09-08 · in force
Maximum duration of maquila benefits	20 yearsLey 7547 art. 13, as of 2025-09-08 · in force
Free Zone Tax on gross income from sales to third countries	0.5 %Ley 523 art. 14, as of 1995-01-16 · in force
Free zone sales to the customs territory under the single tax, maximum share of gross sales	10 %Ley 523 art. 16, as of 1995-01-16 · in force
Minimum wage, monthly, from 1 July 2026	3044000 PYGDecreto 6225/2026 art. 2; Res. MTESS 670/2026, as of 2026-07-01 · in force
Minimum daily wage, from 1 July 2026	117077 PYGDecreto 6225/2026 art. 2; Res. MTESS 670/2026, as of 2026-07-01 · in force
Employer social security contribution (IPS)	16.5 %MTESS social security guide, as of 2026-10-27 · in force
Employee social security contribution (IPS)	9 %MTESS social security guide, as of 2026-10-27 · in force
Dismissal indemnity per year or fraction of six months	15 daily wagesCódigo del Trabajo art. 91, as of 2026-10-27 · in force
Maximum statutory notice (over ten years of service)	90 daysCódigo del Trabajo art. 87, as of 2026-10-27 · in force
Years of service for job stability	10 yearsCódigo del Trabajo art. 94, as of 2026-10-27 · in force
Investor Pass minimum, productive investment with five jobs	70000 USDResolución MIC 0283/2026, as of 2026-10-27 · in force
Permanent residence fee	15 daily minimum wagesLey 6984 art. 100, as of 2022-10-17 · in force
Border security zone width (rural land closed to nationals of neighboring countries)	50 kmLey 2532 art. 1 and 2, as of 2005-02-17 · in force
New York Convention in force	1998-01-06 dateLey 948/1996, as of 1998-01-06 · in force
ICSID Convention in force	1983-02-06 dateICSID/3 list, as of 1983-02-06 · in force
Arbitration statute	Ley 7561/2025 Ley 7561 art. 71, as of 2025-12-23 · in force
CPI inflation, 12 months to September 2026	1.7 %BCP, Informe de Inflación Septiembre 2026, as of 2026-10-27 · in force
S&P long term foreign currency rating (upgraded December 2025)	BBB minus (stable) ratingMEF release of 30 September 2026, as of 2026-09-30 · in force
Moody's long term rating (affirmed 17 July 2026)	Baa3 (stable) ratingMEF release of 17 July 2026, as of 2026-07-17 · in force
Fitch long term rating (affirmed 30 September 2026)	BB+ (positive) ratingMEF release of 30 September 2026, as of 2026-09-30 · in force
ANDE industrial medium voltage line tariff (category 372), off peak energy	167.68 PYG per kWhANDE Pliego de Tarifas Nº 21, point 5.2.1.2, as of 2021-03-17 · in force
ANDE industrial medium voltage line tariff (category 372), peak energy	304.27 PYG per kWhANDE Pliego de Tarifas Nº 21, point 5.2.1.2, as of 2021-03-17 · in force
Enhanced due diligence mandatory for legal entities not domiciled in Paraguay	Yes Resolución SEPRELAD 70/2019, as of 2019-03-15 · in force
PYG per US dollar (BCP reference rate)	5847.9 PYG per USDBCP daily reference quotation, as of 2026-10-27 · in force

The rule

1. Foreign investment. Paraguay: foreign investors and the companies they hold have the same guarantees, rights and obligations as national investors, limited only by law; private investment needs no prior authorization and no registration beyond those set by law; property rights are guaranteed. Argentina: foreign investors have the same rights and obligations as national investors under the Constitution and the laws, may use any legal form of organization, and may transfer realised net profits abroad and repatriate their investment, while access to the official FX market for those transfers is governed by Central Bank (BCRA) rules.
Cost to do it: No admission filing or fee for foreign investment in Paraguay: PYG 0 (US$0).Paraguay: Ley Nº 117/91 De Inversiones. Argentina: Ley Nº 21.382, consolidated text approved by Decreto Nº 1853/1993, Ley 117/91 art. 2, 4 and 5; Ley 21.382 (t.o. 1993) art. 1, 5 and 6, 1992-01-07 official text · verified 2026-10-27

2. FX and repatriation of profits. Paraguay guarantees by law a free exchange regime with no restrictions on the entry and exit of capital or on remitting dividends, interest, commissions and technology royalties abroad; the transfers remain subject to the taxes set by law. In Argentina, banks may give FX market access for dividends to non resident shareholders only if the profits come from closed and audited statements, the total does not exceed the amount the shareholders' meeting assigned to them (backed by a sworn statement), the external assets and liabilities survey is filed, and one listed route applies: the general route covers distributable profits from realised gains in regular audited annual statements of fiscal years starting on or after 1 January 2025. Repatriation of non resident direct investment contributed and settled through the FX market from 21 April 2025 is allowed once at least 180 calendar days have passed since settlement.
Example: A Paraguayan subsidiary can wire PYG 447,364,350 of net dividend abroad without any FX permit. An Argentine subsidiary paying ARS 106,527,509.64 net must show audited statements of a fiscal year that began on or after 1 January 2025. / US$76,500 out of Paraguay against about US$69,129 out of Argentina per US$100,000 of pre tax profit (see the tax rules below).Paraguay: Ley Nº 117/91. Argentina: BCRA Exterior y Cambios consolidated text, updated by Comunicación "A" 8481 (point 3.4.4 as in Comunicación "A" 8307), Ley 117/91 art. 6; Exterior y Cambios points 3.4.1 to 3.4.4.1 and 3.13.1.7, 2026-09-15 official text · verified 2026-10-27

3. Corporate income tax. Paraguay's corporate income tax (IRE) is 10 percent of net income. Argentina's corporate income tax for capital companies uses a progressive scale; for fiscal years starting on or after 1 January 2026 ARCA publishes 25 percent up to ARS 133,514,185.74 of accumulated net taxable income, 30 percent on the excess up to ARS 1,335,141,857.38 (plus ARS 33,378,546.43) and 35 percent above that (plus ARS 393,866,847.93).
Example: On a pre tax profit of PYG 584,790,000, IRE is PYG 58,479,000. On ARS 154,100,000, Argentine tax is ARS 33,378,546.43 plus 30 percent of ARS 20,585,814.26, total ARS 39,554,290.71. / Both are US$100,000 of profit: tax of US$10,000 in Paraguay and about US$25,668 in Argentina (effective 25.7 percent).Paraguay: Ley Nº 6380/2019 De Modernización y Simplificación del Sistema Tributario Nacional. Argentina: Income Tax Law t.o. 2019 (Decreto Nº 824/2019); ARCA 2026 scale, Ley 6380 art. 21; Argentine Income Tax Law art. 73, 2019-09-25 official text · verified 2026-10-27

4. Dividend tax. Paraguay's tax on distributed profits (IDU) is 8 percent when the recipient is resident in Paraguay and 15 percent when the recipient is a non resident person or entity, including profits remitted to a foreign head office; for non residents it is a single and final payment. Paraguay's general non resident income tax (INR) rate is also 15 percent. Argentina applies 7 percent to dividends, withheld by the paying company. Paraguay's tax authority lists six double tax treaties in force (Chile, Taiwan, United Arab Emirates, Uruguay, Qatar and Spain); Argentina is not among them, so a Paraguay to Argentina dividend gets no treaty rate.
Example: Paraguay: PYG 526,311,000 after tax profit, 15 percent IDU PYG 78,946,650, net PYG 447,364,350. Argentina: ARS 114,545,709.29 after tax profit, 7 percent ARS 8,018,199.65, net ARS 106,527,509.64. / Net to a foreign parent per US$100,000 of pre tax profit: US$76,500 from Paraguay (combined 23.5 percent) and about US$69,129 from Argentina (combined about 30.9 percent), before any home country credit.Paraguay: Ley Nº 6380/2019; DNIT list of treaties in force. Argentina: Income Tax Law t.o. 2019, art. 97 as amended by Ley Nº 27.630, Ley 6380 art. 41, 43 and 76; Argentine Income Tax Law art. 97, 2019-09-25 official text · verified 2026-10-27

5. VAT. Paraguay's general IVA rate is 10 percent, with a 5 percent rate for, among others, residential rent, sales of real estate, listed basic foods, farm and livestock products and registered medicines. Argentina's general VAT rate is 21 percent, raised to 27 percent for certain sales of gas, electricity and metered water supplied outside homes.
Example: On a PYG 5,847,900 taxable sale, IVA is PYG 584,790; on an ARS 1,541,000 sale, Argentine VAT is ARS 323,610. / US$100 of VAT on a US$1,000 sale in Paraguay against US$210 in Argentina.Paraguay: Ley Nº 6380/2019. Argentina: VAT Law, t.o. Decreto Nº 280/1997, Ley 6380 art. 90; Argentine VAT Law art. 28, 2019-09-25 official text · verified 2026-10-27

6. Incorporation. A Paraguayan EAS can be formed by one or more individuals or legal entities, is registered online through the SUACE system with the Ministry of Economy registry, acquires legal personality on registration, must pay in its shares within two years at most, and has no legal minimum capital; if cash capital exceeds 1,200 minimum wages, 20 percent must be deposited as a guarantee at Banco Nacional de Fomento. The Ministry of Industry and Commerce comparison sheet gives registration times of 72 business hours for an EAS on the model articles (8 days with a private document or deed), and 15 business days through SUACE (30 days by the ordinary route) for an S.A. or an S.R.L., both formed by public deed with a minimum of two partners, no legal minimum capital, an S.R.L. capped at 25 partners and required to pay in at least 50 percent of cash capital by deposit. An Argentine SAS needs capital of at least two times the minimum wage (SMVM) at formation, is registered within 24 hours from the next business day if the registry's model articles are used, and is entitled to a tax ID (CUIT) within 24 hours, with non resident partners able to get a CDI within 24 hours.
Cost to do it: Paraguay EAS: no legal minimum capital; guarantee deposit of 20 percent of cash capital only above 1,200 minimum wages (PYG 3,652,800,000, about US$624,627, at the July 2026 minimum wage); notary, translation and apostille costs not included. Argentina SAS: minimum capital ARS 782,400 (2 x SMVM of ARS 391,200 from 1 October 2026), about US$508; registry fees not covered here.
Example: A founder can open a single shareholder EAS UNIPERSONAL with any capital up to PYG 3,652,800,000 in cash without a guarantee deposit. An Argentine SAS formed in October 2026 needs at least ARS 782,400 of capital, rising to ARS 797,600 with the November 2026 SMVM. / Paraguay: no capital floor and no deposit below about US$624,627 of cash capital. Argentina: about US$508 of minimum capital.Paraguay: Ley Nº 6480/2020 (EAS); MIC company comparison sheet. Argentina: Ley Nº 27.349, Ley 6480 art. 1, 3, 8 and 10; Ley 27.349 art. 38, 40 and 60, 2020-01-08 official text · verified 2026-10-27

7. Maquila. Paraguay's maquila regime (Ley 7547/2025, which replaces Ley 1064/1997) covers goods and services made for a foreign principal under a maquila contract and taxes the contract and the activities under an approved program with a single 1 percent tax on the value added in Paraguay or the export invoice value, whichever is higher; income from maquila is subject exclusively to that tax. Benefits last up to 20 years from approval of the program, renewable within that cap. Goods maquilas and services maquilas may recover export VAT credits, capped for services maquilas at 0.5 percent of the value added or export invoice. Programs approved under Ley 1064/1997 kept the old conditions for 12 months after the new law took effect.
Example: A maquila exporting PYG 584,790,000 of services, with lower local value added, pays a single tax of PYG 5,847,900. / US$1,000 of tax on US$100,000 of export invoices.Ley Nº 7547/2025 Del Régimen de Maquila, Ley 7547 art. 13, 37, 39 and transitional provisions, 2025-09-08 official text · verified 2026-10-27 · changed: Ley 7547 of 8 September 2025 replaced Ley 1064/1997 and added services maquila; it is regulated by Decreto Nº 5714/2026.

8. Free trade zones. In Paraguay, users that export exclusively to third countries pay a single Free Zone Tax of 0.5 percent of gross income from sales to third countries; they may sell finished goods and services into the Paraguayan customs territory under that tax as long as those sales do not exceed 10 percent of total gross sales in the fiscal year, and above that threshold the local sales share pays income tax with a 70 percent rate reduction. In Argentina the Executive may create one free zone per province plus up to four more; goods entering a zone are exempt from import taxes, there are no economic restrictions on moving goods in and out, but the general tax, customs and financial rules apply to zones except as the law provides.
Example: A Paraguayan free zone user with PYG 584,790,000 of exports pays PYG 2,923,950 of Free Zone Tax. / US$500 of tax on US$100,000 of exports.Paraguay: Ley Nº 523/1995. Argentina: Ley Nº 24.331, Ley 523 art. 14, 16 and 17; Ley 24.331 art. 2, 8, 23 and 24, 1995-01-16 official text · verified 2026-10-27

9. Labor cost and dismissal. Paraguay's minimum wage for unspecified activities is PYG 3,044,000 a month and PYG 117,077 a day from 1 July 2026. The employer pays 16.5 percent of total salary to the social security institute (IPS) and the worker 9 percent. Dismissal without cause costs 15 daily wages per year of service or fraction of six months, calculated on the average pay of the last six months, plus notice of 30 days (up to one year), 45 days (over one up to five years), 60 days (over five up to ten years) or 90 days (over ten years), or pay in lieu. A worker with ten uninterrupted years with the same employer acquires job stability and can only be dismissed for proven just cause, with double indemnity if reinstatement is not feasible. Argentina's SMVM is ARS 391,200 a month from 1 October 2026; dismissal without cause costs one month of pay per year of service or fraction above three months, plus notice of one month (up to five years) or two months (more), or pay in lieu.
Cost to do it: Employer IPS contribution on a minimum wage worker in Paraguay: PYG 502,260 a month (about US$86).
Example: Paraguay, five years of service and PYG 11,695,800 monthly pay (one thirtieth as the daily wage, PYG 389,860): indemnity of 75 daily wages PYG 29,239,500, plus PYG 17,543,700 for 45 days of notice if not given. Argentina, same case at ARS 3,082,000 a month: ARS 15,410,000 plus ARS 3,082,000 in lieu of notice. / On US$2,000 a month after five years: about US$5,000 plus US$3,000 in lieu of notice in Paraguay; US$10,000 plus US$2,000 in Argentina.Paraguay: Decreto Nº 6225/2026 and Resolución MTESS Nº 670/2026; Ley Nº 213/1993 (Código del Trabajo); MTESS social security guide. Argentina: Resolución Nº 4/2026 of the minimum wage council; Ley Nº 20.744 (LCT) as amended by Ley Nº 27.802, Decreto 6225/2026 art. 2; Código del Trabajo art. 87, 90, 91, 92, 94 and 97; LCT art. 231 and 245, 2026-06-17 official text · verified 2026-10-27

10. Residency. Paraguay's migration law grants temporary residence for up to two years, renewable, as a prerequisite for permanent residence, but exempts foreigners who prove investments under the SUACE law, who can apply for permanent residence directly; permanent residence is lost after more than three years of unjustified absence; the permanent residence fee is 15 daily minimum wages. The Investor Pass framework (Resolución MIC Nº 0283/2026) sets the Foreign Investor Certificate thresholds: productive investment from US$70,000 with at least five formal jobs and a business plan, financial instruments from US$200,000 held at least two years, real estate from US$200,000 for economic use, and tourism from US$150,000. Argentina grants Mercosur nationals two year temporary residence, renewable, and has investor (inversionista) and income (rentista) temporary categories of up to three years, renewable.
Cost to do it: Paraguay permanent residence fee: 15 daily minimum wages, PYG 1,756,155 at PYG 117,077 (about US$300); certificates, translations and the identity card are extra.
Example: A productive investment of PYG 409,353,000 (US$70,000) with five formal jobs qualifies for the Foreign Investor Certificate. / Minimum ticket US$70,000 productive, US$150,000 tourism, US$200,000 real estate or financial instruments.Paraguay: Ley Nº 6984/2022 De Migraciones; Resolución MIC Nº 0283/2026. Argentina: Ley Nº 25.871, Ley 6984 art. 46, 52, 54 and 100; Ley 25.871 art. 23 incisos b), d) and l), 2022-10-17 official text · verified 2026-10-27

11. Tax residence. In Paraguay, legal entities formed under Paraguayan law are resident, and foreign entities become resident from registration of a domicile in the public registry; personal income tax (IRP) applies to resident individuals, while non residents pay the 15 percent INR on Paraguayan source income. Argentina treats foreign nationals as resident once they obtain permanent residence, or after 12 months under temporary migration authorizations; residence is lost on acquiring permanent residence abroad or after 12 months of continuous absence.Paraguay: Ley Nº 6380/2019. Argentina: Income Tax Law t.o. 2019, Ley 6380 art. 5, 49 and 76; Argentine Income Tax Law art. 116 and 117, 2019-09-25 official text · verified 2026-10-27

12. Property purchase by foreigners. Paraguay guarantees property rights for national and foreign investment, but within the border security zone, the 50 kilometre strip along land and river borders, nationals of any neighboring country (Argentina, Brazil and Bolivia) and legal entities mostly owned by them may not own, co own or hold usufruct over rural property unless the Executive authorizes it by decree on public interest grounds; acts in breach are void and carry a fine of twice the transaction value, and notaries may not record them. In Argentina, art. 154 of DNU 70/2023 repealed the rural land law (Ley 26.737) that capped foreign ownership.
Example: An Argentine buyer of a PYG 5,847,900,000 rural property inside the 50 km strip without a decree risks nullity plus a fine of PYG 11,695,800,000. / Fine of US$2,000,000 on a US$1,000,000 rural purchase in breach.Paraguay: Ley Nº 117/91; Ley Nº 2532/2005. Argentina: Decreto de Necesidad y Urgencia Nº 70/2023, Ley 117/91 art. 5; Ley 2532 art. 1, 2, 5 and 8; DNU 70/2023 art. 154, 2005-02-17 official text · verified 2026-10-27

13. Courts and arbitration. Paraguay's new arbitration law (Ley 7561/2025) governs domestic and international private arbitration, repeals the 2002 arbitration and mediation law except its mediation articles, sends recognition of foreign awards to the Civil and Commercial Courts of Appeal of Asunción, and recognizes foreign awards under the treaties Paraguay has ratified, applying the most favorable one. Both countries are parties to the New York Convention: Paraguay acceded on 8 October 1997 (in force 6 January 1998) with no declarations listed; Argentina ratified on 14 March 1989 (in force 12 June 1989) with reciprocity and commercial reservations. ICSID entered into force for Paraguay on 6 February 1983 and for Argentina on 18 November 1994.Paraguay: Ley Nº 7561/2025 De Arbitraje; Ley Nº 948/1996 (New York Convention). UNCITRAL and ICSID status lists for both, Ley 7561 art. 10, 59 and 71; ICSID/3 list of 17 July 2026, 2025-12-23 official text · verified 2026-10-27 · changed: Ley 7561 of 23 December 2025 replaced Paraguay's Ley 1879/2002 for arbitration; mediation articles 53 to 67 of Ley 1879 remain in force.

14. Bank accounts for non residents. Paraguay's AML rules for banks supervised by the Central Bank require minimum client information (for individuals including nationality, domicile, a sworn statement on the origin of funds and income documentation) and make enhanced due diligence mandatory for legal entities not domiciled in Paraguay, trusts, politically exposed persons and clients transacting with high risk jurisdictions, with acceptance decided at senior management level. In Argentina any natural person can hold a savings account, but the bank must obtain electronically from ARCA the holder's CUIT or CDI (or the CUIL), so a non resident first needs an Argentine tax identification key.Paraguay: Resolución SEPRELAD Nº 70/2019 (articles 26 to 28 amended by Resolución Nº 254/2020). Argentina: BCRA Depósitos de ahorro, cuenta sueldo y especiales (consolidated text), Res. SEPRELAD 70/2019, client information and expanded due diligence regime; BCRA t.o. point 4.2, 2019-03-15 official text · verified 2026-10-27

Topic	Paraguay	Argentina	Paraguay source	Argentina source
Time and cost to incorporate (EAS, S.A., S.R.L. against SAS)	EAS online via SUACE: 72 business hours on model articles (8 days with private document or deed); no legal minimum capital; 20% guarantee deposit only if cash capital exceeds 1,200 minimum wages (PYG 3,652,800,000, about US$624,627); S.A. and S.R.L. by public deed, minimum 2 partners, no legal minimum capital, 15 business days via SUACE (30 ordinary), S.R.L. up to 25 partners and at least 50% of cash capital paid in by deposit	SAS: registered within 24 hours from the next business day with model articles; CUIT in 24 hours; minimum capital 2 x SMVM = ARS 782,400 (about US$508)	https://www.mic.gov.py/wp-content/uploads/2025/05/COMPARATIVO-DE-SOCIEDADES-2.pdf	https://servicios.infoleg.gob.ar/infolegInternet/anexos/270000-274999/273567/texact.htm
Foreign ownership of companies	Same guarantees, rights and obligations as nationals; no prior authorization or extra registration	Same rights and obligations as national investors; any legal form allowed	https://www.bacn.gov.py/leyes-paraguayas/785/ley-n-117-de-inversiones	https://www.argentina.gob.ar/normativa/nacional/norma-16477/texto
Dividends and capital out	Free exchange regime by law, no restrictions on capital or dividend remittances	Official FX access for dividends from audited profits of fiscal years starting from 1 Jan 2025 and other listed routes; FDI repatriation 180 days after settlement for contributions from 21 Apr 2025	https://www.bacn.gov.py/leyes-paraguayas/785/ley-n-117-de-inversiones	https://www.bcra.gob.ar/Pdfs/comytexord/A8481.pdf
Corporate income tax	10% (IRE)	25%, 30% and 35% brackets; 30% from ARS 133.5 million and 35% from ARS 1,335.1 million (fiscal years from 2026)	https://www.dnit.gov.py/en/web/portal-institucional/w/d-ley-n-6380-19	https://arca.gob.ar/gananciasYBienes/ganancias/personas-juridicas/determinacion/documentos/Ganancias-Escala-PJ-2026.pdf
Dividend tax to non residents	15% (IDU), single and final; 8% for residents	7%, withheld by the payer	https://www.dnit.gov.py/en/web/portal-institucional/w/d-ley-n-6380-19	https://www.argentina.gob.ar/normativa/nacional/decreto-824-2019-332890/actualizacion
Paraguay Argentina tax treaty	None among the six treaties in force	No treaty with Paraguay in force per the DNIT list	https://www.dnit.gov.py/web/portal-institucional/cdi-%7C-convenios-de-doble-imposici%C3%B3n	https://www.dnit.gov.py/web/portal-institucional/cdi-%7C-convenios-de-doble-imposici%C3%B3n
VAT standard rate	10% (5% reduced)	21% (27% on certain utilities supplied outside homes)	https://www.dnit.gov.py/en/web/portal-institucional/w/d-ley-n-6380-19	https://servicios.infoleg.gob.ar/infolegInternet/anexos/40000-44999/42701/texact.htm
Maquila	Single 1% tax on value added or export invoice, up to 20 years (Ley 7547/2025)	No national maquila single tax; the closest export regime compared here is the free zone law (Ley 24.331)	https://www.bacn.gov.py/leyes-paraguayas/12853/ley-n-7547-2025-del-r-gimen-de-maquila	https://www.argentina.gob.ar/normativa/nacional/ley-24331-725/texto
Free trade zones	0.5% single tax on exports to third countries; local sales up to 10% of gross sales under the single tax	Goods entering exempt from import taxes; general tax rules otherwise apply	https://www.bacn.gov.py/leyes-paraguayas/11620/ley-n-523-autoriza-y-establece-el-r-gimen-de-zonas-francas	https://www.argentina.gob.ar/normativa/nacional/ley-24331-725/texto
Monthly minimum wage	PYG 3,044,000 from 1 Jul 2026 (about US$521)	ARS 391,200 from 1 Oct 2026 (about US$254)	https://www.mtess.gov.py/wp-content/uploads/2026/07/Resolucion-MTESS-N%C2%B0-670-REGLAMENTACION-SALARIO-2026.pdf	https://servicios.infoleg.gob.ar/infolegInternet/anexos/425000-429999/429565/norma.htm
Dismissal without cause	15 daily wages per year or fraction of 6 months; notice 30 to 90 days; stability after 10 years (double indemnity)	1 month per year or fraction above 3 months; notice 1 or 2 months	https://www.dnit.gov.py/web/portal-institucional/w/n-ley-n-213-93	https://servicios.infoleg.gob.ar/infolegInternet/anexos/25000-29999/25552/texact.htm
Residence by investment	Direct permanent residence for SUACE investors; Investor Pass from US$70,000 productive (5 jobs), US$150,000 tourism, US$200,000 real estate or financial	Investor (inversionista) temporary residence up to 3 years, renewable; Mercosur nationals 2 years	https://www.mic.gov.py/paraguay-fortalece-la-atraccion-de-inversiones-extranjeras-con-el-nuevo-investor-pass/	https://www.argentina.gob.ar/normativa/nacional/ley-25871-92016/actualizacion
Tax residence	Entities formed under local law; IRP for resident individuals, 15% INR for non residents	Permanent residence, or 12 months under temporary authorizations	https://www.dnit.gov.py/en/web/portal-institucional/w/d-ley-n-6380-19	https://www.argentina.gob.ar/normativa/nacional/decreto-824-2019-332890/actualizacion
Property by foreigners	Property guaranteed; rural land within 50 km of borders closed to nationals of neighboring countries (including Argentines) without an Executive decree	Foreign rural land caps of Ley 26.737 repealed by DNU 70/2023 art. 154	https://www.bacn.gov.py/leyes-paraguayas/4025/ley-n-2532-establece-la-zona-de-seguridad-fronteriza-de-la-republica-del-paraguay	https://servicios.infoleg.gob.ar/infolegInternet/anexos/395000-399999/395521/norma.htm
Arbitration law and courts	Ley 7561/2025; foreign award recognition at the Civil and Commercial Courts of Appeal of Asunción	Foreign awards under the New York Convention with reciprocity and commercial reservations	https://www.bacn.gov.py/leyes-paraguayas/12917/ley-n-7561-2025-de-arbitraje	https://uncitral.un.org/en/texts/arbitration/conventions/foreign_arbitral_awards/status2
New York Convention	Accession 8 Oct 1997, in force 6 Jan 1998	Ratified 14 Mar 1989, in force 12 Jun 1989	https://uncitral.un.org/en/texts/arbitration/conventions/foreign_arbitral_awards/status2	https://uncitral.un.org/en/texts/arbitration/conventions/foreign_arbitral_awards/status2
ICSID Convention	In force 6 Feb 1983	In force 18 Nov 1994	https://icsid.worldbank.org/sites/default/files/2026-07/2026_July17_ICSID3_ENG.pdf	https://icsid.worldbank.org/sites/default/files/2026-07/2026_July17_ICSID3_ENG.pdf
CPI inflation, 12 months to Sep 2026	1.7%	33.4%	https://www.bcp.gov.py/en/web/institucional/w/informe-de-inflaci%C3%B3n-septiembre-2026	https://www.indec.gob.ar/uploads/informesdeprensa/ipc_10_268C45A9444C.pdf
Sovereign rating (S&P, Moody's, Fitch)	BBB minus stable, Baa3 stable, BB+ positive	B minus stable, B3 positive, B minus stable	https://www.mef.gov.py/es/institucional/sala-de-prensa/noticias/fitch-ratings-mantiene-calificacion-soberana-paraguay-bb	https://www.argentina.gob.ar/economia/finanzas/relacion-con-inversores/calificaciones-crediticias
Industrial electricity	ANDE medium voltage line (cat. 372): PYG 167.68/kWh off peak (about US$0.029) and PYG 304.27/kWh peak, plus PYG 38,127/kW month reserved power	No single national tariff: distributor tariffs pass through wholesale market (MEM) costs and provinces regulate their own distributors	https://www.ande.gov.py/docs/tarifas/PLIEGO21.pdf	https://www.argentina.gob.ar/normativa/nacional/ley-24065-464/actualizacion
Bank account for a non resident	Allowed under bank AML rules; mandatory enhanced due diligence for foreign domiciled legal entities	Bank must obtain ARCA CUIT or CDI (or CUIL) first	https://digestolegislativo.gov.py/ups/leyes/10758.pdf	https://www.bcra.gob.ar/archivos/Pdfs/texord/t-depaho.pdf
USD rate used on this page	PYG 5,847.90 (BCP, 27 Oct 2026)	ARS 1,541.00 (BCRA, 26 Oct 2026)	https://www.bcp.gov.py/webapps/web/cotizacion/monedas	https://api.bcra.gob.ar/estadisticascambiarias/v1.0/Cotizaciones/USD?fechadesde=2026-10-22&fechahasta=2026-10-27

Paraguay and Argentina side by side for a foreign investor or founder, verified 27 October 2026. Each row cites the official source for each country.

Worked example

US$100,000 of profit to a foreign parent. Paraguay: PYG 584,790,000 of pre tax profit, IRE 10 percent PYG 58,479,000, dividend PYG 526,311,000, IDU 15 percent PYG 78,946,650, net PYG 447,364,350 (US$76,500), wired under the free exchange regime. Argentina: ARS 154,100,000 of pre tax profit, tax ARS 39,554,290.71 under the 2026 scale, dividend ARS 114,545,709.29, 7 percent withholding ARS 8,018,199.65, net ARS 106,527,509.64 (about US$69,129), payable through the official FX market if it comes from audited profits of a fiscal year that started on or after 1 January 2025.
Dismissing an employee with five years of service and US$2,000 monthly pay: Paraguay PYG 29,239,500 (US$5,000) of indemnity taking one thirtieth of monthly pay as the daily wage, plus PYG 17,543,700 (US$3,000) if the 45 days of notice are not given; Argentina ARS 15,410,000 (US$10,000) plus ARS 3,082,000 (US$2,000) in lieu of one month's notice.
Monthly cost of a minimum wage employee in Paraguay: PYG 3,044,000 of salary plus PYG 502,260 of employer IPS, total PYG 3,546,260 (about US$606).

Step by step

1. Decide where the operating company sits and where profits must end up: a Paraguayan company pays dividends abroad under Ley 117/91 art. 6 without FX permits, while an Argentine company must meet BCRA point 3.4 conditions (audited statements, shareholders' meeting, external assets and liabilities survey) for each payment.
2. Paraguay: register an EAS online through SUACE (eas.mic.gov.py) with the model articles, or an S.A. or S.R.L. by public deed through SUACE; apostille and translate foreign parent documents and powers of attorney before filing.
3. If an export model fits, compare the maquila program (Ley 7547/2025, approval by the maquila council secretariat) with a free zone user contract (Ley 523/1995) before setting up the operating company.
4. Argentina: use the registry's model SAS articles for 24 hour registration, subscribe at least ARS 782,400 of capital (ARS 797,600 from November 2026), obtain the CUIT and have non resident partners obtain a CDI.
5. Residency: in Paraguay obtain the Foreign Investor Certificate through SUACE under Resolución MIC 0283/2026 and then apply for permanent residence at the Dirección Nacional de Migraciones; in Argentina apply for the inversionista or Mercosur temporary category.
6. Banking: in Paraguay prepare identity, domicile, sworn origin of funds and income documents, and expect enhanced due diligence if the account holder is a foreign domiciled entity; in Argentina obtain the CDI or CUIT first.
7. Before buying rural land in Paraguay as an Argentine, Brazilian or Bolivian national, check the cadastre certificate for the border security zone and whether an Executive decree is needed.

Common traps

Paraguay's low 10 percent corporate tax is only half the story for a foreign parent: the 15 percent IDU on dividends to non residents brings the combined rate to 23.5 percent, and there is no Paraguay Argentina tax treaty to reduce it.
The border security zone rule targets nationals of neighboring countries, so Argentine investors and Paraguayan companies mostly owned by Argentines cannot hold rural land within 50 km of the border without a decree; such deeds are void and carry a fine of twice the transaction value.
Paraguayan employees with ten uninterrupted years acquire job stability: dismissal then needs proven just cause in court, and if reinstatement is not feasible the indemnity doubles.
Programs approved under the old maquila law kept its conditions only for 12 months after Ley 7547/2025 took effect; check that an existing program has been moved to the new regime.
Free zone users lose the 0.5 percent single tax treatment on local sales once sales into the Paraguayan customs territory exceed 10 percent of gross sales in the year.
Argentine dividend FX access depends on the fiscal year that generated the profit: profits of years that started before 1 January 2025 are outside the general route.
ANDE's published industrial tariffs date from the March 2021 revision of Pliego 21; confirm the applicable category and any later change with ANDE before modelling energy costs.