Paraguay's Tax System: The Honest Guide
We believe you deserve the truth — not marketing spin. Here's exactly how Paraguay's tax system works, what it means for you, and what to watch out for.
How Paraguay Taxes Work
| Tax | Rate | What It Covers |
|---|---|---|
| IRE (Business Income) | 10% flat | Paraguayan-source business income only |
| IRP (Personal Income) | 8-10% | Services rendered in Paraguay, capital gains from Paraguayan assets |
| IVA (VAT) | 10% | Goods and services in Paraguay |
| Foreign Income Tax | 0% | Remote work, foreign dividends, foreign capital gains, foreign rental income — all tax-free |
Key fact: No wealth tax. No inheritance tax on foreign assets. No worldwide income taxation.
CRS & Information Exchange: What You Need to Know
Current Status: No CRS Participation
Paraguay does not currently participate in the OECD's Common Reporting Standard (CRS). Bank information is not automatically shared with European tax authorities.
Projected Change: CRS Likely 2027-2030
Paraguay is moving toward OECD compliance and CRS implementation is expected within the next few years. This window of non-participation is narrowing. The territorial tax system itself may remain, but banking privacy will change.
Important Disclaimer
LEALTIS provides advisory on Paraguayan tax and legal matters only. We do not provide tax advice for your home country. We strongly recommend consulting a local tax professional in your country of residence before making any decisions. Tax evasion is illegal; tax optimization within the law is your right.
Get honest tax guidance
We explain the real picture — advantages and limitations — so you can make an informed decision.
Book Free Consultation