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Start here: the legal gateways every foreign investor crosses in Paraguay

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

Paraguay gives foreign investors the same rights as nationals, needs no prior authorization or extra registration for private investment, and guarantees by law free exchange for capital, dividends, interest and royalties. Most newcomers form an EAS online through the SUACE one stop shop, file their beneficial owners with the Ministry of Economy and register for tax with the DNIT. The tax core is short: 10 percent IRE on business income, 15 percent IDU on dividends to nonresidents, 15 percent INR on other payments abroad and 10 percent IVA, with a 1 percent maquila tax and a 0.5 percent free zone tax for exporters.

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. Conversions are for orientation only.

Key facts

Exchange regime for capital and profits	Free exchange guaranteed by law, no prior authorization Ley 117/91 art. 4 and 6, as of 1992-01-07 · in force
Access to FX for dividends abroad	Free, subject only to tax 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) for nonresident recipients	15 %Ley 6380 art. 43, as of 2019-09-25 · in force
Dividend tax (IDU) for resident recipients	8 %Ley 6380 art. 43, as of 2019-09-25 · in force
Nonresident income tax (INR) rate on deemed net income	15 %Ley 6380 art. 76, as of 2019-09-25 · in force
IVA general rate	10 %Ley 6380 art. 90, as of 2019-09-25 · in force
IVA reduced rate	5 %Ley 6380 art. 90, as of 2019-09-25 · in force
Maquila single tax	1 %Ley 7547 art. 37, as of 2025-09-08 · in force
Free zone single tax on exports to third countries	0.5 %Ley 523 art. 14, as of 1995-01-16 · in force
EAS legal minimum capital	None PYGLey 6480; MIC comparison sheet, as of 2025-05 · in force
EAS registration time with model bylaws	72 business hoursMIC comparison sheet, as of 2025-05 · in force
S.A. registration time through SUACE	15 business daysMIC comparison sheet, as of 2025-05 · in force
Deadline to report beneficial owner changes	15 business daysLey 6446 art. 7, as of 2019-11-29 · in force
Minimum monthly wage (unspecified activities) from 1 July 2026	3044000 PYGDecreto 6225/2026; Res. MTESS 670/2026, as of 2026-07-01 · in force
Investor Certificate minimum, productive investment with 5 jobs	70000 USDRes. MIC 0283/2026 Annex I art. 1 g, as of 2026-04-21 · in force
Investor Certificate minimum, real estate	200000 USDRes. MIC 0283/2026 Annex I art. 1 g, as of 2026-04-21 · in force
Border security zone width	50 kmLey 2532 art. 1, as of 2005-02-17 · in force

The rule

1. National treatment and open entry. The foreign investor and the companies in which it takes part have the same guarantees, rights and obligations that laws and regulations give national investors, with no limits other than those set by law. Private investment needs no prior authorization and no registration beyond those set by law, property rights are guaranteed, and national and foreign investments are subject to the same tax regime.
Cost to do it: No admission filing or fee for a foreign investment: PYG 0 (US$0).Ley Nº 117/91 De Inversiones, Art. 2, 4, 5 and 10, 1992-01-07 official text · verified 2026-10-28

2. Free exchange. The law guarantees a free exchange regime with no restrictions on the entry and exit of capital or on remitting abroad dividends, interest, commissions, technology royalties and other items. All exchange operations, remittances and transfers remain subject to the taxes set by law. Investors may also agree with each other, and with State bodies contracting with a foreign investor, to submit disputes to national or international arbitral tribunals.Ley Nº 117/91 De Inversiones, Art. 6 and 9, 1992-01-07 official text · verified 2026-10-28

3. The EAS, the default vehicle. An Empresa por Acciones Simplificada can be formed by one or more individuals or legal entities, is always commercial in nature, and its bylaws are filed only through the Sistema Unificado de Apertura y Cierre de Empresas (SUACE), which passes them to the Ministry registry. It gains legal personality on registration. A model bylaws form is approved by resolution; changes to the model or other bylaws need a favourable opinion of the Abogacía del Tesoro. Capital may be paid in on terms set in the bylaws but never later than two years.Ley Nº 6480/2020 Que crea la Empresa por Acciones Simplificadas (EAS), Art. 1, 2, 3, 5, 7, 8 and 10, 2020-01-08 official text · verified 2026-10-28

4. Registration times and capital. The Ministry of Industry and Commerce (MIC) comparison sheet lists the EAS as filed online in 72 business hours with the model bylaws, and the S.A. and S.R.L. as filed in person, 15 business days through SUACE or 30 days through the normal route. None of the three has a legal minimum capital, but capital must be enough for the business. If an EAS's cash capital exceeds 1,200 minimum wages, 20 percent is deposited at Banco Nacional de Fomento and may be withdrawn after registration; an S.R.L. deposits at least 50 percent of cash capital.
Cost to do it: EAS model bylaws: no legal minimum capital. Deposit trigger 1,200 minimum wages = PYG 3,652,800,000 (about US$622,462); 20 percent deposit PYG 730,560,000 (about US$124,492).
Example: An EAS with cash capital of PYG 1,000,000,000 is below the 1,200 minimum wage trigger and needs no bank deposit. / About US$170,407 of cash capital, below the US$622,462 trigger.MIC SUACE company comparison sheet applying Ley Nº 6480/2020 and the Código Civil, EAS, S.A. and S.R.L. columns, 2025-05 official text · verified 2026-10-28

5. Beneficial owners and share transfers. Companies and other legal persons and structures must file their shareholders, directors and beneficial owners with the Ministry registry and report any change within 15 business days of the event. Share transfers are notified by the buyer to the company within five business days and by the company to the authority within five business days of that notice. Breaches carry fines of 50 to 500 daily minimum wages or up to 30 percent of the profits to be distributed, and an entity that is late cannot open accounts or make deposits or remittances in the financial system until it complies.
Cost to do it: Fines of 50 to 500 jornales: PYG 5,853,850 to PYG 58,538,500 (about US$998 to US$9,975).Ley Nº 6446/2019; Ley Nº 5895/2017, Ley 6446 art. 3, 7, 8 and 9; Ley 5895 art. 5 and 6, 2019-11-29 official text · verified 2026-10-28

6. Corporate income tax (IRE). IRE taxes Paraguayan source income from all economic activities at 10 percent of net income. The tax year matches the calendar year, and the tax is self assessed by sworn return when and how the tax administration sets; it may also require financial statements, which must match those filed with banks and other public bodies.
Example: Net income of PYG 100,000,000 pays IRE of PYG 10,000,000. / About US$17,041 of net income pays about US$1,704 of IRE.Ley Nº 6380/2019 De Modernización y Simplificación del Sistema Tributario Nacional, Art. 1, 7, 21 and 23, 2019-09-25 official text · verified 2026-10-28

7. Dividends and payments abroad. IDU on dividends and profits is 8 percent for resident recipients and 15 percent for nonresident recipients, including a foreign head office. INR, the tax on Paraguayan source income of nonresidents, is 15 percent, applied to deemed net income set by the law for each type of payment.
Example: PYG 100,000,000 of profit: IRE PYG 10,000,000, then IDU of 15 percent on the PYG 90,000,000 dividend (PYG 13,500,000) leaves PYG 76,500,000 for a nonresident parent, a combined 23.5 percent. / About US$17,041 of profit leaves about US$13,036 for the foreign parent.Ley Nº 6380/2019, Art. 43 and 76, 2019-09-25 official text · verified 2026-10-28

8. IVA. IVA is settled monthly as output tax less input tax. The general rate is 10 percent; 5 percent applies to residential rent, sales of real estate, listed basic food items, listed farm products and registered medicines.Ley Nº 6380/2019, Art. 86 and 90, 2019-09-25 official text · verified 2026-10-28

9. Export regimes. Under the new maquila law, the maquila contract and the activities of a maquila program pay a single tax of 1 percent on the value added in Paraguay or the export invoice value, whichever is higher. Free zone users that only export to third countries pay a single free zone tax of 0.5 percent of gross income from those sales, paid with each export clearance.Ley Nº 7547/2025 Del Régimen de Maquila; Ley Nº 523/95 Régimen de Zonas Francas, Ley 7547 art. 37; Ley 523 art. 14, 2025-09-08 official text · verified 2026-10-28

10. Investor residence. Temporary residence is granted for up to two years, renewable, and is normally the step before permanent residence; foreigners who prove investments in Paraguay under the SUACE law are exempt from that step. The MIC Investor Certificate (Constancia de Inversionista Extranjero) proves the investment for that purpose, with minimums of US$70,000 for productive investments creating at least five formal jobs, US$150,000 for tourism and US$200,000 for financial instruments or real estate, issued within five business days of a complete file.
Cost to do it: DNM permanent residence fee 25 jornales: PYG 2,926,925 (about US$499) in cash from 1 July 2026.Ley Nº 6984/2022 De Migraciones; Resolución MIC Nº 0283/2026, Ley 6984 art. 46; Res. 0283 art. 4 and Annex I art. 1, 2026-04-21 official text · verified 2026-10-28

11. Border security zone. A 50 km strip along land and river borders is a border security zone, where foreigners from neighbouring countries, and legal persons mostly owned by them, cannot own, co own or hold usufruct over rural real estate unless the Executive authorizes it by decree on public interest grounds.Ley Nº 2532/2005 Que establece la zona de seguridad fronteriza, Art. 1 and 2, 2005-02-17 official text · verified 2026-10-28

Topic	Rule	Norm
Admission of foreign investment	Same rights as nationals; no prior authorization	Ley 117/91 art. 2 and 4
Repatriation	Free exchange for capital, dividends, interest, royalties	Ley 117/91 art. 6
Default vehicle	EAS, one or more founders, online via SUACE in 72 business hours	Ley 6480; MIC sheet
Corporate tax	IRE 10 percent, calendar year	Ley 6380 art. 7 and 21
Dividends	IDU 8 percent resident, 15 percent nonresident	Ley 6380 art. 43
Payments to nonresidents	INR 15 percent on deemed net income	Ley 6380 art. 76
IVA	10 percent general, 5 percent reduced	Ley 6380 art. 90
Export regimes	Maquila 1 percent; free zone 0.5 percent	Ley 7547 art. 37; Ley 523 art. 14
Minimum wage	PYG 3,044,000 a month from 1 July 2026	Decreto 6225/2026
Investor residence	Direct permanent residence with MIC Investor Certificate from US$70,000	Ley 6984 art. 46; Res. MIC 0283/2026

Paraguay at a glance for a new investor (sources in the rules above)

Worked example

A US parent invests US$200,000 (about PYG 1,173,662,000) in a new Paraguayan EAS. No investment registration or FX permit is needed, and the cash capital is below the 1,200 minimum wage deposit trigger.
In year one the EAS earns net income of PYG 100,000,000 (about US$17,041), pays IRE of PYG 10,000,000 and distributes PYG 90,000,000. IDU of 15 percent (PYG 13,500,000) leaves PYG 76,500,000 (about US$13,036) to wire to the parent without FX authorization.

Step by step

Decide the vehicle: EAS for speed and flexibility, S.A. or S.R.L. where a partner or sector requires it (see entities/choosing-an-entity).
Apostille the foreign parent's documents; Paraguay is a party to the Hague Apostille Convention (see start/first-90-days).
File the EAS on SUACE with the model bylaws; budget 72 business hours once the file is complete.
Obtain the RUC tax number with the DNIT and register the beneficial owners with the Ministry registry.
Open a bank account; banks check the beneficial owner filing before operating.
Register as employer with IPS before hiring and diarize the monthly tax and payroll dates (see start/tax-and-compliance-calendar).
If you will relocate, request the MIC Investor Certificate and then permanent residence with the DNM.

Common traps

Free exchange does not mean tax free: IDU at 15 percent and INR at 15 percent on deemed net income apply to money sent abroad.
Changing the EAS model bylaws triggers an Abogacía del Tesoro opinion and moves you out of the 72 business hour track.
Missing a beneficial owner update within 15 business days can block bank deposits and remittances until it is filed.
Nationals of Argentina, Brazil and Bolivia, and companies they mostly own, cannot buy rural land within 50 km of the border without a decree.
The Investor Certificate minimums are in US dollars at the official rate on the application date, so a weaker guaraní does not lower the threshold.
Paraguay and Argentina have no income tax treaty, so a Paraguayan dividend to an Argentine parent bears the full 15 percent IDU.

Sources

Paraguay vs Argentina: how easy is it to do business →

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