The following overview provides clear details on the availability and main conditions of sole proprietorship status in Paraguay for 2025. It highlights the official structures, tax regime, and practical steps based solely on the latest factual data.
Availability of Sole Proprietorship Status in Paraguay
In Paraguay, individuals seeking to conduct business without creating a separate legal entity have access to the Persona Física con Negocio (Contribuyente Unipersonal) status. This structure is officially recognized and is in active use as a straightforward path for individuals to invoice clients and operate legally as a business.
This designation is accessible to ordinary residents and citizens, allowing for the conduct of a wide range of business activities under personal name registration. There is no requirement to establish a company or other legal entity, making this format notably accessible and practical for small and mid-scale operations.
Key Features of the Sole Proprietor Regime in Paraguay
The Paraguayan tax authority (Subsecretaría de Estado de Tributación, SET) governs sole proprietor registrations. Individuals operating as a Persona Física con Negocio fall under a specialized tax regime known as Regimen Resimple (Simple Regime), tailored for small taxpayers. Below is a summary of the main features:
| Status Name | Description | Annual Gross Income Limit (PYG) | Annual Gross Income Limit (USD) | Tax Payment Method | Oversight Authority |
|---|---|---|---|---|---|
| Persona Física con Negocio (Contribuyente Unipersonal) | Individual status for operating a business and invoicing clients without creating a separate legal entity | G. 80,000,000 | $11,000 (USD) | Monthly fixed payment (amount varies by income bracket) | SET (Subsecretaría de Estado de Tributación) |
Exchange rate for calculation: G. 7,273 = $1 USD (rounded for clarity).
How the Regimen Resimple Works (2025)
The Regimen Resimple is designed for sole proprietors whose total gross income does not exceed G. 80,000,000 per year (approximately $11,000 USD). Under this regime:
- Sole proprietors pay a single monthly fixed tax, determined by their income bracket.
- This payment replaces VAT, income tax, and certain other taxes, consolidating obligations into a simplified form.
- Registration is required with the SET, the official Paraguayan tax authority.
This system is intentionally straightforward to reduce compliance friction for micro and small business owners.
Registration Process and Oversight
Individuals wishing to register as a Contribuyente Unipersonal must do so via the Paraguayan tax authority website (SET). SET is responsible for all taxpayer registrations, administration of the Resimple regime, and oversight of sole proprietorships. All supporting details and step-by-step registration guidelines are made available on the government website.
Main Advantages
- Accessibility: Open to ordinary individuals without the need to form a company or partnership.
- Simplified taxation: The Resimple regime consolidates multiple taxes into one monthly payment, easing the compliance requirements.
- Cost-effectiveness: Fixed tax amounts offer predictability and fewer administrative burdens compared to more complex regimes.
Summary Table: Sole Proprietor Status in Paraguay (2025)
| Criteria | Description / Value |
|---|---|
| Legal Status Available | Yes (Persona Física con Negocio) |
| Tax Regime | Regimen Resimple |
| Income Eligibility | Up to G. 80,000,000 per year (≈ $11,000 USD) |
| Tax Payment | Single fixed monthly payment (varies per income range) |
| Required Authority | SET (Subsecretaría de Estado de Tributación) |
| Registration Link | set.gov.py/portal/PARAGUAY-SET/ |
Pro Tips for Sole Proprietors in Paraguay (2025)
- Ensure annual gross income does not exceed G. 80,000,000 ($11,000 USD) to remain eligible for the Resimple regime. Exceeding this threshold requires switching to a more comprehensive tax system.
- Keep digital records of all client invoices and payments to streamline the monthly tax reporting process via SET.
- Review income thresholds annually, as SET may update limits and requirements from year to year.
- Registration and compliance procedures can be managed online through the SET website for convenience and faster processing.
Official Sources & Useful Links
To sum up, Paraguay offers a clearly defined path for individuals seeking to operate as sole proprietors via the Persona Física con Negocio status. The Resimple regime provides a simplified tax structure, with eligibility capped at G. 80,000,000 in annual gross income, making it particularly relevant for micro and small businesses. Registration processes are fully centralized through SET, contributing to accessibility and efficiency. For those considering this individual business status, careful monitoring of income levels and regular review of official requirements ensure ongoing compliance and eligibility.