Paraguay
Paraguay is an emerging destination for expatriates thanks to its territorial tax system. No tax on foreign-source income, a flat 10% rate on local income, and a cost of living among the lowest in South America make it an attractive choice for freelancers and investors. Asunción is gradually modernising with a growing entrepreneurial scene. The country welcomes British and EU citizens with one of the simplest residency processes in the world.
Taxation
Income tax brackets
| Bracket | Rate |
|---|---|
| 0 € → 50 000 000 € | 8 % |
| 50 000 000 € → 150 000 000 € | 9 % |
| 150 000 000 € → unlimited | 10 % |
Corporate tax
10 %
Capital gains
8 %
VAT
10 %
Special regime : Taxation territoriale
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.
Permanente (systeme territorial par défaut)
Devenir résident fiscal au Paraguay (présence de 120 jours/an ou obtention de la cédula). Aucune condition de revenus minimum.
- 0 % d'impot sur tous les revenus de source étrangere
- Bareme progressif de 8 % à 10 % sur les revenus de source locale
- IS de 10 % seulement, l'un des plus bas du continent
- Aucune retenue à la source sur les dividendes envoyés à l'étranger
Visa options
Résidence permanente
residenceDuration: Permanente
Cost: Environ 1 500 USD (frais administratifs et avocat)
Requirements: Dépot bancaire de 5 000 USD sur un compte paraguayen. Casier judiciaire vierge. Aucune condition de revenu minimum.
Visa investisseur (SUACE)
investisseurDuration: Permanente
Cost: Environ 2 000 USD tout compris
Requirements: Investissement dans une entreprise ou un bien immobilier au Paraguay. Aucun montant minimum légal, mais un investissement de 10 000 USD est recommandé.
Living in Paraguay
Popular locations among expatriates
Cost of living
Comparison with the French average (vertical line)
Single person
Couple
City center rent
Outside city center rent
The cost of living in Paraguay is among the lowest in South America. A single person can live on £500/month excluding rent in Asunción. Rents are very affordable, even in the city centre. Food and transport are particularly cheap.
Settling in Paraguay
Practical indicators to prepare your relocation
Safety & stability
Procedures
Start a business
Obtaining permanent residency in Paraguay is one of the simplest processes in the world: a $5,000 deposit in a local account is enough. The process takes about 2-3 months with a local lawyer. The cédula (ID card) then enables easy bank account opening and company creation. Asunción, however, lacks modern infrastructure and cultural life compared to neighbouring capitals.
The Paraguayan public health system is basic and often overburdened. Private clinics in Asunción (Sanatorio Migone, Hospital Italiano) offer decent care at very low prices. For complex procedures, many expats go to Argentina or Brazil. Local health insurance costs £18-45/month.
Quality of life
Paraguay offers a hot subtropical climate year-round. The country is landlocked (no sea access) and infrastructure remains basic outside Asunción. The international expat community is limited but growing, with English a useful asset in business circles. Spanish suffices for daily life. Safety is decent in residential neighbourhoods.
Pros and cons
Advantages
- Territorial taxation: 0% on foreign-source income
- Cost of living among the lowest in the world
- Permanent residency quickly accessible ($5,000 deposit)
- Very competitive 8-10% progressive rates on local income
Disadvantages
- No tax treaty with the UK
- Basic infrastructure and slow internet
- Landlocked country with no sea access
- Limited English-speaking community outside business circles
Go further
Compare with
Need help with your relocation to Paraguay ?
Our partner experts help you with your tax and administrative procedures.
Talk to an expertSources
Verified on January 15, 2025All data on this page comes from public and institutional sources.
FAQ
What is the tax rate in Paraguay?
The top marginal income tax rate in Paraguay is 10%. The corporate tax rate is 10%. A special regime exists: Taxation territoriale.
What is the cost of living in Paraguay?
The monthly cost of living for a single person in Paraguay is approximately 600 EUR (excluding rent). City center rent costs around 350 EUR per month.
Is there a tax treaty between the United Kingdom and Paraguay?
Check HMRC for the current status of the tax treaty between the United Kingdom and Paraguay.
These results are estimates.
The data presented are estimates and do not constitute tax advice. Consult a professional for your personal situation.