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Republic of Paraguay (PY)
TKEG Expat ™ (EU) Business Guide

Republic of Paraguay

Corporate Services in Paraguay
Low Taxes and Favorable Business Environment
Paraguay is known for its low tax rates, particularly a flat 10% corporate tax and personal income tax, which is among the lowest in the region. This favorable tax regime, combined with a pro-business regulatory environment, makes it attractive for foreign investors looking to establish operations with low costs.
Abundant Hydroelectric Power
Paraguay is a global leader in renewable energy production, generating nearly 100% of its electricity from hydroelectric sources. It shares control of the Itaipu Dam, one of the largest hydroelectric plants in the world. This provides businesses with access to abundant and cheap energy, which is a significant advantage for energy-intensive industries.
Strategic Location for Trade
Located in the heart of South America, Paraguay has access to key regional markets through trade agreements like MERCOSUR, allowing companies to easily export goods to neighboring countries such as Brazil and Argentina. Its central location makes it a strategic hub for regional distribution.
Competitive Labor Costs
Paraguay offers one of the most competitive labor cost structures in Latin America. Combined with relatively low operating costs, this makes it a highly attractive destination for manufacturing, agribusiness, and industries seeking cost-effective production solutions.

TKEG Expat ™ (EU) Paraguay Business Info

About Paraguay

Paraguay offers one of South America’s lowest corporate tax rates at 10%, a young workforce, competitive energy costs from Itaipú hydropower, and Mercosur market access for regional trade.
TKEG Expat can provide services in Paraguay

Tax Info

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Administrative Regions

1 - Concepción Department
10 - Alto Paraná Department
11 - Central Department
12 - Ñeembucú Department
13 - Amambay Department
14 - Canindeyú
15 - Presidente Hayes Department
16 - Alto Paraguay Department
19 - Boquerón Department
2 - San Pedro Department
3 - Cordillera Department
4 - Guairá Department
5 - Caaguazú
6 - Caazapá
7 - Itapúa
8 - Misiones Department
9 - Paraguarí Department

Belonging Jurisdiction

Republic of Paraguay
PY - Paraguay
Republic of Paraguay
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Union of South American Nations
USAN - Union of South American Nations
Union of South American Nations
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Global
WORLD - Global
Global
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