If you’re an entrepreneur or digital nomad frustrated by the labyrinth of tax codes and the constant pressure of compliance, you’re not alone. Many seek a smarter, leaner way to operate—especially in countries where the state’s reach can feel overwhelming. Paraguay, in 2025, offers a refreshingly straightforward solution for those looking to minimize bureaucracy and maximize autonomy: the Persona Física con Negocio (also known as Contribuyente Unipersonal).
Understanding Sole Proprietorship in Paraguay: The Persona Física con Negocio
Paraguay recognizes the sole proprietorship model, officially termed Persona Física con Negocio or Contribuyente Unipersonal. This status empowers individuals to invoice clients and conduct business activities without the need to establish a separate legal entity. It’s a practical, widely used option for freelancers, consultants, and small business owners who value simplicity and control.
Key Features at a Glance
| Feature | Details (2025) |
|---|---|
| Status Name | Persona Física con Negocio (Contribuyente Unipersonal) |
| Who Can Register? | Any individual citizen |
| Legal Entity Required? | No |
| Tax Regime | Regimen Resimple (Simple Regime) |
| Annual Gross Income Limit | G. 80,000,000 (approx. USD 11,000) |
| Tax Payment | Single, fixed monthly payment based on income bracket |
| Tax Authority | Subsecretaría de Estado de Tributación (SET) |
How the Regimen Resimple Simplifies Your Tax Life
For those tired of juggling multiple tax filings, Paraguay’s Regimen Resimple is a breath of fresh air. Designed for small taxpayers, this regime replaces VAT, income tax, and other levies with a single, simplified monthly payment. In 2025, if your annual gross income is up to G. 80,000,000 (approx. USD 11,000), you qualify for this streamlined approach.
Mini Case Study: The Digital Consultant
Imagine Ana, a freelance web developer earning G. 60,000,000 (approx. USD 8,250) per year. Instead of navigating a maze of tax forms, Ana registers as a Contribuyente Unipersonal under the Resimple regime. She pays a fixed monthly tax, freeing up time and mental bandwidth to focus on her business—not paperwork.
Pro Tips: Registering and Optimizing Your Sole Proprietorship in Paraguay
- Check Your Eligibility
Ensure your projected annual gross income does not exceed G. 80,000,000 (approx. USD 11,000) in 2025. - Gather Required Documents
Prepare your identification and any supporting documents needed for registration. - Register with SET
Visit the SET portal to complete your registration as a Persona Física con Negocio. - Choose the Resimple Regime
Opt for the Regimen Resimple to benefit from the simplified tax structure. - Pay Your Monthly Tax
Stay compliant by making your fixed monthly payment based on your income bracket. This replaces multiple tax filings and payments.
Why Paraguay’s Sole Proprietorship Model Appeals to Freedom Seekers
By allowing individuals to operate without forming a separate legal entity and offering a single, predictable tax payment, Paraguay’s system respects your time and autonomy. The Resimple regime is particularly attractive for those who value privacy, efficiency, and minimal state interference in their business affairs.
Summary: Key Takeaways for 2025
- Paraguay offers a sole proprietorship status—Persona Física con Negocio—that is accessible and practical for individuals.
- The Regimen Resimple simplifies tax obligations into a single monthly payment for those earning up to G. 80,000,000 (approx. USD 11,000) per year.
- Registration is straightforward via the SET portal.
- This model is ideal for digital nomads and entrepreneurs seeking to optimize their tax burden and maintain individual freedom.
For more details, consult the official resources: