Italy
Paraguay
Italy vs Paraguay
Complete comparison for your tax relocation
Taxation
| Top income tax bracket | 43% | 10% |
| Corporate tax | 24% | 10% |
| Capital gains | 26% | 8% |
| VAT | 22% | 10% |
| Tax treaty with France | Yes | No |
| Special regime | Régime Impatriati (70 % d'exonération) | Taxation territoriale |
| Wealth tax | No | No |
| Territorial taxation | No | Yes |
Régime Impatriati (70 % d'exonération)
Duration: 5 ans (prolongeable de 5 ans sous conditions)
Les travailleurs qui transferent leur résidence fiscale en Italie peuvent bénéficier d'une exonération de 70 % de leur revenu imposable (50 % depuis 2024 pour les nouveaux bénéficiaires). Seuls 30 à 50 % des revenus sont effectivement imposés, ce qui réduit considérablement la charge fiscale.
Taxation territoriale
Duration: Permanente (systeme territorial par défaut)
Le Paraguay applique une imposition strictement territoriale. Seuls les revenus de source paraguayenne sont imposés. Les revenus étrangers, y compris dividendes, intérets et plus-values, sont totalement exonérés.
Cost of living
| Monthly cost (single) | 1 200 € | 600 € |
| Monthly cost (couple) | 1 900 € | 950 € |
| City center rent | 900 € | 350 € |
| Outside city rent | 550 € | 200 € |
| Private health insurance | 0 € | 35 € |
| Public healthcare | Accessible | Private only |
Estimated total monthly budget (single, with city center rent)
Paraguay is approximately 1 150 € cheaper per month in total.
Quality of life
| Average temperature | 15°C | 24°C |
| Safety | 5/10 | 5/10 |
| Health index | 65/100 | 55/100 |
| Internet | 80 Mbps | 30 Mbps |
| Timezone vs Paris | +0h | -5h |
| French-speaking community | Small | Very small |
| Languages | Italien | Espagnol, Guarani |
| Currency | Euro (EUR) | Guarani (PYG) |
| Corruption index | 56/100 | 28/100 |
| Democracy index | 7.69/10 | 6.18/10 |
Settling in
| Residence permit delay | 6 months | 3 months |
| Company creation | 11 days | 35 days |
| Bank account | Moderate | Easy |
| Political stability | 7/10 | 5.5/10 |
| Ease of business | 58th worldwide | 125th worldwide |
Summary
Italy
- Top IT: 43% | Corp. tax: 24%
- Cost of living: 1 200 €/mo
- Safety: 5/10 | Health: 65/100
- Regime: Régime Impatriati (70 % d'exonération) (5 ans (prolongeable de 5 ans sous conditions))
Paraguay
- Top IT: 10% | Corp. tax: 10%
- Cost of living: 600 €/mo
- Safety: 5/10 | Health: 55/100
- Regime: Taxation territoriale (Permanente (systeme territorial par défaut))
Comparative analysis: Italy vs Paraguay
Which country has lower taxes?
In terms of taxation, Paraguay is generally more advantageous. The top marginal income tax rate is 10% compared to 43% in Italie. Corporate tax stands at 10% versus 24%. Capital gains are taxed at 8% in Paraguay versus 26% in Italy.
Which country is cheaper to live in?
The cost of living is lower in Paraguay. A single person spends about 600 EUR/month excluding rent, compared to 1 200 EUR/month in Italie. City center rent averages 350 EUR versus 900 EUR.
Which country is safer?
Both countries have an identical safety score of 5/10.
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Disclaimer
The tax information presented is based on estimates from public sources (PwC, OECD, government sources). It does not constitute tax or legal advice. Tax rules change regularly and your personal situation may significantly affect the calculation. Consult a qualified professional before making any relocation decision.