South America
Paraguay: tax at a glance
A strictly territorial 10/10/10 system. Only Paraguayan-source income is taxed, and foreign income is fully exempt.
Territorial
Last verified July 2026
Ways to relocate to Paraguay
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 10%
- Corporate income
- 10%
- Capital gains
- 8%
- VAT / IVA
- 10%
- Dividends (WHT)
- 8% for residents, 15% for non-residents
- Interest (WHT)
- 15%
- Royalties (WHT)
- 15%
- Social security (employee)
- 9% (IPS)
- Social security (employer)
- 16.5% (IPS)
- Wealth tax
- None
- Inheritance / estate
- None
- Property tax
- Impuesto Inmobiliario, about 1% of assessed value
How the system works
- Tax system
- Territorial
- Foreign income
- Largely outside scope (territorial)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Participating
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Sources (1)
Frequently asked
What is the income tax rate in Paraguay?
The top marginal personal income tax rate in Paraguay is 10%. Personal-service income (IRP) is taxed on a progressive 8%/9%/10% scale, and capital income at a flat 8%. Only Paraguayan-source income is taxable.
What is the corporate tax rate in Paraguay?
The headline corporate income tax rate is 10%.
Does Paraguay tax capital gains?
Capital gains for individuals: 8%.