Paraguay
South America · PY · 6 treaties
What is Paraguay's tax system?
Paraguay operates a territorial tax system. The top personal income tax rate is 10%, and the corporate tax rate is also 10%.
Tax profile
| Corporate income tax | 10% |
| Withholding — dividends | 15% |
| Withholding — interest | 0% |
| Withholding — royalties | 15% |
| VAT / GST (standard) | 10% |
| Personal income (top rate) | 10% |
| Capital gains | 8% |
| Tax system | Territorial |
| Residency threshold | 120 days |
| Exit / departure tax | No |
| CFC rules | No |
| Transfer pricing | Oecd Aligned |
| Digital nomad visa | No |
| Digital services tax | none |
| Global minimum tax (Pillar 2) | None |
Common questions
- What are the main tax rates in Paraguay?
- Paraguay has a top personal income tax rate of 10%, a corporate tax rate of 10%, and a capital gains tax of 8%. The standard VAT rate is 10%.
- How does Paraguay tax dividends?
- Dividends are subject to a 15% withholding tax in Paraguay.
- Can I get residency in Paraguay easily?
- Residency in Paraguay is considered easy. A golden visa is available with a minimum investment of $40,000 USD.
Tax residency
Easy to leaveWhat makes you a tax resident — and how hard it is to stop being one.
- 183+ days in Paraguay
- center of vital interests / economic interests in Paraguay
- legal immigration residency + cédula + RUC registration
Official guidance for individuals is based on presence and local registration/economic ties, not citizenship or domicile. That means tax residency is generally ended by ceasing the qualifying presence/ties and no official exit tax or multi-year tail is indicated in the provided official guidance.
Source: DNIT (Dirección Nacional de Ingresos Tributarios)
Tax treaty network (23)
In-force double-tax treaty partners. Treaty-reduced withholding (dividends / interest / royalties) shown where the official source publishes a rate; otherwise the country's statutory rate applies unless the treaty text provides a reduction.
| Partner | Div | Int | Roy |
|---|---|---|---|
| Chile | 15% | 14% | 14% |
| Spain | 15% | 10% | 5% |
| Germany | 15% | 10% | 5% |
| Qatar | — | — | — |
| United Arab Emirates | — | — | — |
| Uruguay | 15% | 12% | 12% |
| Argentina | 15% | 12% | 12% |
| Belgium | 15% | 12% | 5% |
| Brazil | 15% | 15% | 15% |
| Canada | 15% | 10% | 10% |
| Czechia | 15% | 10% | 10% |
| France | 15% | 10% | 5% |
| Japan | 15% | 10% | 10% |
| South Korea | 15% | 12% | 12% |
| Mexico | 10% | 10% | 10% |
| Netherlands | 15% | 10% | 5% |
| Slovakia | 15% | 10% | 10% |
| Taiwan | 10% | 10% | 10% |
| Finland | 15% | 10% | 10% |
| Sweden | 15% | 10% | 10% |
| Switzerland | 15% | 10% | 5% |
| United Kingdom | 15% | 12% | 12% |
| United States of America | 15% | 12% | 12% |