With the E.A.S., fast procedures of a few days up to about a week are possible. Traditional structures and banking processes can extend the overall timeline.
Paraguay has ~7 million people, uses the guaraní (PYG), and is a Mercosur member providing access to key South American markets.
The tax system is often referred to as the “10-10-10”:
Corporate income tax (IRE): 10% (Paraguayan-source only)
VAT (IVA): 10% standard / 5% reduced
Personal income tax: capped at 10%
Profit distribution: 8% (residents), 15% (non-residents)
Paraguay follows the territorial principle, only local income is taxed. The Maquila regime offers 1% taxation on value added, and free trade zones provide VAT advantages.
Common legal entities: S.A. and E.A.S. (faster, flexible). 100% foreign ownership allowed, though a local legal representative is typically needed. Incorporation can take days to weeks, but opening a bank account is slower due to KYC.
Paraguay is not on the EU’s 2026 blacklist. However, for EU-resident HNWIs, tax effectiveness requires a genuine tax residence shift, effective management, and economic substance.
Contact us for an individual analysis and, where appropriate, better alternative solutions.
Paraguay uses the IVA system. Registration is generally straightforward provided you have proper documentation, an RUC number and a clearly traceable business activity. Rates: 10% standard, 5% reduced.
Foreign ownership is possible. In practice, however, a local legal representative is required for tax and administrative purposes.
There are established local and regional banks. Account opening is compliance-heavy. RUC, KYC, source-of-funds evidence and a clear business description are required.
Paraguay is not on the EU list of non-cooperative jurisdictions.
Company formation can be handled via local service providers. Depending on the bank, the bank account may require personal presence or increased substance requirements.
With the E.A.S., fast procedures of a few days up to about a week are possible. Traditional structures and banking processes can extend the overall timeline.
| Tax Burden | Banking | Reputation | Bureaucracy | Legal Security | Costs | |
|---|---|---|---|---|---|---|
| USA | 21-0% |
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from EUR 1,900 |
| Singapore | 0% |
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from EUR 2,950 |
| Hong Kong | 0% |
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from EUR 1,900 |
| Cyprus | 15% |
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from EUR 1,900 |
| Malta | 5% |
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from EUR 2,500 |
| Ireland | 12,5% |
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from EUR 1,950 |
| Trust | 0% |
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from EUR 4,900 |
| England | 25-19% |
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from EUR 1,000 |
Your country of residence may impose tax and reporting obligations for foreign business activities and dividend income — in some cases even if profits are not distributed.
Depending on your personal circumstances, a suitable holding structure may be required to comply with tax rules and avoid unnecessary tax risks.
To determine which jurisdiction and structure best meet your requirements, please use the contact form and describe your plans in as much detail as possible.
Our advisers will be happy to review your case and advise you accordingly.
