Americas · PYG
Paraguay
Reviewed 2026-06-21
Top income tax
10%
Self-employed SS
Optional
VAT
10%
Capital gains
8%
Exit tax
No
Nomad visa
No
71
/ 100
Tax efficiency81
Ease to enter44
Ease to exit93
Cost of living91
Internet20
English25
Paraguay runs a strictly territorial tax system, so income earned outside the country is not taxed, and headline rates are low with personal income tax topping out at 10 percent and both corporate tax and VAT set at 10 percent. There is no wealth tax, no inheritance or gift tax, no exit tax, and no controlled foreign company rules, which makes it attractive for location independent solopreneurs. Residency is easy to obtain through investor and business programs, though there is no dedicated digital nomad visa and English proficiency is low.
Personal income tax
Income tax structureProgressive
Top income tax rate10%
Entry income tax rate8%
Top rate threshold$20,500
Taxation basisTerritorial
Local/state income taxNo
Social security
Self-employed social securityOptional
Employee SS rate9%
Employer SS rate16.5%
Indirect & other taxes
VAT standard rate10%
Capital gains rate8%
Long-hold CGT exemptionNo
Wealth taxNo
Inheritance/gift taxNo
Property taxNo
Exit & residency
Exit taxNo
EU/EEA deferralNo
Days to trigger residency120 days
Corporate
Corporate income tax rate10%
WHT on dividends8%
CFC rulesNo
Incentives & special regimes
Special expat regimeNo
Immigration & setup
Digital nomad visaNo
Entrepreneur visaYes
Ease of setup2 / 5
Lifestyle
Cost of living index30.7
Internet speed94 Mbps
English proficiencyLow
Civil liberties62
Sources
- PwC Worldwide Tax Summaries — Paraguay Individual Taxes on personal income
- PwC Worldwide Tax Summaries — Paraguay Corporate Taxes on corporate income
- PwC Worldwide Tax Summaries — Paraguay Individual Other taxes (social security and VAT)
- PwC Worldwide Tax Summaries — Paraguay Corporate Income determination (dividends IDU)
- Numbeo — Cost of Living in Asuncion
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.