Investing in Paraguay

Investment Attraction Policy Incentives for Foreign Investment Investment-Related Legislation

Paraguay has become a land of opportunities for foreign investment. The time to invest it´s now! Get to know more about Paraguay through the following video (with Japanese subtitles).

The Republic of Paraguay offers multiple reasons to host foreign investments that are looking for a destination with the most favorable conditions to maximize their operations while facilitating the access to important markets that will enhance their capital returns.

Some of the opportunities that Paraguay offers thanks to its open trade policy are:


Access to attractive markets:

  • Paraguay is located in the center of the markets with the biggest income in the region (Brazil, Argentina and Uruguay).
  • Products made in Paraguay using 40% of MERCOSUR parts and 60% extra-zone imported parts can still be considered of MERCOSUR origin and benefit from lower import tariffs throughout the region.

Low production costs:

  • Abundant natural resources: Paraguay has ideal weather and fertile soils. Underneath it lies the Guarani Aquifer, which ensures abundant and low cost water provision.
  • Abundant electricity: Paraguay is the biggest producer of electricity per capita and the number one electricity exporter in South America. Abundant clean and sustainable energy is available for industrial investments.
  • Young and trainable labor force: Paraguay has the youngest population in South America, with 74% of its people being younger than 34 years old.
  • Competitive labor costs: The monthly minimum wage is around US$ 430, with social benefits standing at around 16,5%.


Low tax burden:

  • Corporate Tax: 10%
  • Value Added Tax (VAT): 10%
  • Personal Income Tax: 10% over net profits (income-expenses), applicable to incomes above US$ 3,300.