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About Paraguay

With a population of just under seven million and an area of 406,752 kilometers, Paraguay has a stable market economy and a reliable government. The country has the most competitive tax scheme in the region and the most stable currency in South America. GDP growth has averaged 4.5% for the past 10 years, and the investment climate is excellent with high rates of return. Paraguay’s culture is open and inclusive to foreigners.

Permanent residence and an ID card in Paraguay enable visa-free travel to all Mercosur countries in Latin America. Permanent residence is typically granted within six months, while full citizenship and passports are granted after three years for those that want to stay and live in Paraguay.

Paraguay – Country Profile

  • Stable, solvent, predictable and reliable economy and government
  • The most stable currency in South America (the Guaraní)
  • Traditionally inclusive and open country for foreigners
  • Best investment climate in the region, with high ROI (20-22%)
  • Low inflation – less than 5% over the past five years
  • Most competitive tax scheme – with a flat tax rate of 10%
  • Spanish and Guarani – official languages
  • Life expectancy of 71, with a 94% literacy rate
  • Global ranking of 83 in the Economic Freedom Index
  • Safe natural conditions – no hurricanes or earthquakes
  • Permanent residence possibilities that allow for easy border crossing to and from Argentina, Brazil, Uruguay and other Mercosur countries.

Paraguay Economy and Investment

One of the things that make such a great opportunity is that the Paraguayan government welcomes with open arms investors from other countries, especially from EU, the UK, Switzerland, Norway, Russia, Turkey, Island, Ukraine, Australia, New Zealand, Canada, Taiwan and the US and allows a 100% repatriation of earnings and funds. Paraguay has always had low taxes: the corporate tax is 10%, and the VAT tax for the majority of services and goods is 10% as well. Paraguay also offers exceptional tax advantages (up to 20 years!), VAT exemption and a corporate tax burden amounts exemption. NO TAX if your business is outside Paraguay!

Paraguay’s GDP increased by 13.6% in 2013, by 4.2% in 2014 by 4.5% in 2015, by 6% in 2016 and 2017. This sustained growth can be attributed to a debt-to-GDP ratio of 19.9% – one of the lowest in the Mercosur. Additionally, in 2017, Paraguay’s inflation was only 3.4% – one of the lowest in the region. Paraguay offers attractive investment opportunities in no small part because of its relatively young population – with 70% of its populace under the age of 35.

Paraguay has a variety of interesting business ideas and investment opportunities, and tourism is at the top of the list. During 2017, the number of tourists to Paraguay doubled, and Paraguay recently won first place in the UN World Travel Organization’s Travel Barometer. The country offers tourism development options in many beautiful regions – with the possibility of owning land, investing in the country’s many agricultural products, or buying into industries such as cement, sugar, textile and beverages – just to name a few.

Ruinas Jesuitas Paraguay

Paraguay and MERCOSUR

Like Brazil, Uruguay and Argentina, Paraguay is a full member of the Mercosur (Southern Common Market). Being a full member means easier entry to the housing, market and investment opportunities of the other member states. Citizens of the other member states can acquire various forms of business licenses and residence permits through an easier process as well. Furthermore, there are some concessions for permanent residents in the common market. In Paraguay’s case, there is an average applied import tariff of 10% – one of the lowest in the region.