Skip to content
Home / Foreign investors
Foreign business owners and investors

Set up and run your company in Paraguay with local support

We work with foreigners who genuinely want to operate or invest in Paraguay — not just process personal paperwork.

Talk to us
Why Paraguay

What a foreign investor looks at when evaluating Paraguay

Paraguay comes up frequently in the evaluations of business owners from Brazil, Argentina, the United States and Europe, for a set of concrete reasons: comparatively low tax rates within the region — 10% IRE (corporate income tax) and 10% IVA (VAT) as general rates, with a reduced 5% IVA for certain goods and services — a relatively simple tax system since Law 6380/2019 (Ley 6380/2019), competitive operating costs, and a residency regime linked to investment.

None of this means zero taxes or automatic benefits, and you should be skeptical of anyone who frames it that way. Each company's real tax burden depends on its regime, its industry, its corporate structure and how it withdraws profits. A project that is well structured from the start makes good use of the legal framework; an improvised one ends up paying to fix it later.

Our work is the Paraguayan side of the project: making sure the company is properly incorporated, correctly registered with DNIT (Paraguay's tax authority), that the accounting starts out organized and that the documentation is in order for banks and counterparties. Any obligations the investor retains in their home country require coordination with specialists in that jurisdiction.

The path

How we support your setup in Paraguay

1

Project assessment

We get to know your activity, your objectives, your existing structure abroad and your starting point.

2

Structure and incorporation

We define the appropriate legal structure and coordinate the incorporation process in Paraguay.

3

Registration with DNIT

RUC (tax ID) registration, the applicable tax regime and registration of the obligations that apply.

4

Immigration coordination

With qualified professionals in that field, based on your situation and the type of residency you are seeking.

5

Banking documentation

We prepare the documentation you need for account opening and financing applications.

6

Accounting and operations

The company starts with its accounting in order, and we keep supporting the operation month after month.

Residency and investment

Residency by investment, Paraguayan ID card and RUC: three different things

This is the most common confusion and it is worth clearing up early. Residency is an immigration status held by an individual: it allows you to live and remain legally in Paraguay. There is a residency regime linked to investment, processed through SUACE, which requires an investment certificate issued by the Ministry of Industry and Commerce, along with personal and corporate documentation.

The Paraguayan identity card (cédula) is the document obtained once residency has been granted, and it makes day-to-day life vastly simpler: banking, signing before a notary and dealings with government agencies. The RUC (tax ID), by contrast, is the tax registration with DNIT: the company holds one, and an individual carrying out taxable activity can hold one too.

A company can be formed and operated in Paraguay with partners who do not reside in the country; what needs to be clearly defined in that case is local legal representation, the powers of attorney granted and who handles day-to-day signing authority. And obtaining residency in Paraguay does not by itself eliminate obligations a person may have in their country of origin: that has to be analyzed with a specialist in that jurisdiction.

Important points

What you should be clear about from the start

  • ✓ Immigration residency and tax position are distinct matters, even though they are related.
  • ✓ Obtaining residency or forming a company in Paraguay does not eliminate obligations in your home country.
  • ✓ Approval of bank accounts and financing is subject to each institution's own assessment.
  • ✓ Distributing profits abroad has its own tax treatment (IDU) and should be projected from the outset.
  • ✓ We handle the Paraguayan side of the project; your home jurisdiction is coordinated with specialists there.
  • ✓ We work in Spanish, English and Portuguese, so the operation never depends on improvised translation.
Frequently asked questions

About investing and setting up in Paraguay

In practical terms a foreign company is not relocated as such: the usual route is to form a Paraguayan company (EAS, SRL or SA) or register a branch of the foreign entity, depending on the project. Next comes RUC (tax ID) registration with DNIT, the municipal business license if the activity requires it, opening a bank account, and setting up the accounting and electronic invoicing. In parallel, the immigration status of the people involved is resolved if they will be living in the country.
Yes, it is a common arrangement. You can be a partner or shareholder in a Paraguayan company without residing in the country, as long as local legal representation and the powers of attorney granted are properly defined. Accounting, electronic invoicing and filings before DNIT are handled remotely with a trusted local team — which is precisely the role we play for clients operating from abroad.
A company incorporated in Paraguay is taxed like any local company: IRE (corporate income tax) on its profits, IVA (VAT) on its transactions and any specific taxes that apply to its activity. On top of that comes IDU when it distributes profits to its partners, at a higher rate when the beneficiary is not a resident, and INR (non-resident income tax) on certain Paraguayan-source income paid abroad. The structure used to set up the project directly influences that burden.
Yes. A significant share of the investors arriving in Paraguay are Brazilian, and we also work with English-speaking clients. This site is available in Spanish, English and Portuguese, and we coordinate service in whichever language the client finds most comfortable.

See all frequently asked questions about taxes and companies in Paraguay →

Keep exploring

Let's talk about your project in Paraguay

Tell us what stage you are at and what you need to solve first.

Talk to us