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Paraguay

PY • GUARANí, SPANISH • PYG (₲)

Paraguay is a frontier of economic liberty, defined by its "10-10-10" tax system and a territorial regime that respects foreign earnings. While systemic corruption and bureaucratic friction persist, the state’s minimal footprint offers unparalleled autonomy for entrepreneurs. Political stability has matured, recently achieving investment-grade status, providing a predictable backdrop for capital. With a low cost of living and abundant energy, it serves as a sanctuary for those seeking to build wealth away from Western over-regulation and fiscal overreach.

Upsides
  • Low tax burden with a simple 10% flat rate for corporate and personal income
  • Territorial taxation system exempting foreign-sourced income from domestic levies
  • Abundant and inexpensive hydroelectric power for energy-intensive industrial or digital operations
Downsides
  • Pervasive institutional corruption and weak judicial protection for private property rights
  • Underdeveloped physical infrastructure and logistical bottlenecks increasing operational costs
  • Significant presence of informal markets and security risks in border regions

Taxation

Corporate Tax 10%
Income Tax 0.08–0.1%
VAT 10%
Tax Treaties 0
IP Box ? Intellectual Property Box. A tax incentive offering reduced rates on income derived from patents, copyrights, and other intellectual property. No
Exit Tax ? A tax on unrealized capital gains triggered when a taxpayer moves their tax residence to another country. No

Compliance

BEPS ? Base Erosion and Profit Shifting. An OECD framework to combat tax avoidance strategies used by multinationals to shift profits to low-tax jurisdictions. Member
FATF ? Financial Action Task Force. An intergovernmental body that sets standards to prevent money laundering and terrorist financing worldwide. Non-member
FATCA ? Foreign Account Tax Compliance Act. A US law requiring foreign banks to report accounts held by US citizens to the IRS. Non-signatory
CRS ? Common Reporting Standard. An OECD standard for automatic exchange of financial account information between tax authorities globally. Non-signatory

Blacklists

FATF Blacklist ? Countries identified by FATF as having serious deficiencies in anti-money laundering and counter-terrorist financing measures. Clear
EU Blacklist ? The EU list of non-cooperative tax jurisdictions. Countries that fail to meet transparency and fair taxation standards. Clear

Payment Platforms

Stripe Unavailable
PayPal Available

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