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
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%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.
- 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
A special regime for new arrivals
Strictly territorial under Ley 6380/2019. IRP reaches Paraguayan-source income only. Corporate IRE is 10% and dividends are 15%, or 8% for Investor Pass holders.
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.