🇵🇾 Paraguay
Tax-free income, world-class infrastructure, and luxury living in the heart of the Middle East.
Paraguay Citizenship and Naturalization
Grade:
BGlobal Rank: 65
Visa-free Access
122 out of 195 countries
Access to Major Destinations
- European Union
- United Kingdom
- Canada
- United States
- China
- Russia
- Japan
| Category | Details |
|---|---|
Citizenship by Descent |
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Naturalizations |
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Spouse Naturalization |
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Birthright Citizenship |
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Economic Citizenship (Investment) |
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Other Provisions |
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Citizenship by Exception |
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Taxation Overview
Personal Tax Overview: Paraguay 🇵🇾
Key information about personal taxation in Paraguay
Tax Residency
Normal rule: 120 days
Special rule: No information
Special Tax Regime
No information
| From (PYG) | To (PYG) | Tax Rate |
|---|---|---|
| 0 | 50,000,000 | 8% |
| 50,000,001 | 150,000,000 | 9% |
| 150,000,001 | and above | 10% |
Dividend Tax
8%
Dividends in Paraguay are exempt from tax if paid from profits already taxed at the corporate level and the shareholder is either a resident or a foreign entity with a tax treaty providing for exemption.
Capital Gains Tax
8%
Capital gains from the sale of shares or dividends are exempt from taxation, provided they are subject to the Tax on Dividends and Profits (IDU).
Property Rental Income
8%
Paraguay taxes property rental income as part of the personal income tax system. The rental income is subject to the standard personal income tax rate of 8% for amounts up to 50 million Paraguayan guaranies (PYG), 9% for income between 50 million and 150 million PYG, and 10% for income exceeding 150 million PYG.
Property Tax
Yes
Paraguay imposes a property tax known as the Impuesto Inmobiliario. The rate varies depending on the location and value of the property, but it generally ranges from 0.5% to 1.0% of the property's value per year. The tax is levied on both residential and commercial properties.
Inheritance Tax
Yes
Paraguay imposes inheritance tax ranging from 1% to 8% for direct heirs and 3% to 15% for other beneficiaries, depending on the value of the estate.
Wealth Tax
No
VAT
10%
Paraguay applies a 10% VAT on most goods and services, with exemptions for certain items such as basic foodstuffs, medicine, and educational services.
CFC Laws
No
Paraguay does not have specific controlled foreign corporation (CFC) laws for individuals. However, Paraguay taxes its residents on Paraguayan-source income, including income derived from foreign assets and activities if related to Paraguayan taxpayers.
