Attractive Tax Environment

Finestra Law does not provide tax or accounting advice. This material has been prepared for informational purposes only and is not intended to substitute tax, or financial advice from a professional accountant.

Personal Income Tax

Any individual residing 120 or more days in Paraguay is deemed a tax resident. Personal Income Tax applies to all individuals, independent or not, whose annual income exceeds US$ 13,000 (adjusts yearly). The tax rate is progressive, ranging between 8% and 10%, and is based on goods and services, sale of real estate, bonds, shares, interest, and more, created within Paraguay.

Net Worth and Inheritance Tax

Paraguay has no net worth or inheritance tax.

Taxes on Corporate Income

10% on income derived from any kind of economic activity within Paraguay.

Value Added Tax (VAT or IVA in Spanish)

Freelancers need to declare a 10% VAT tax. The VAT rate is included in all invoices for goods and services.

Real Estate Tax

A yearly tax of one (1) percent (%) of the property’s fiscal value. The percentage may vary according to the location.