Paraguay's investment market: a complete overview

An overview of Paraguay's investment market

Paraguay is a landlocked country bordering Brazil, Bolivia and Argentina. It covers roughly 400,000 square kilometres and is home to 7 million people. The local currency, the guaraní, has been in circulation for 79 years and is regarded as the most stable in South America.

The country is divided into 17 departments and a capital district, and falls into two main regions: the Western and the Eastern. Most major cities have river ports. Two languages are spoken here - Guaraní and Spanish.

Today Paraguay is a social state governed by the rule of law, with a democratic political system built on three branches of government: executive, legislative and judicial.

GDP

According to Paraguay's Central Bank, GDP has been growing by 4% a year since 2021. Reserves stand at around 9.5 billion dollars, while external public debt is about 12.7 billion dollars, or 23% of GDP.

In 2008 the country was hit by drought and a drop in agricultural exports, and the economy contracted by 3.8%. From 2014 onward, however, Paraguay's economy began to grow again on the back of high output and strong global commodity prices - precisely when other countries in the region were suffering from economic crisis.

Within GDP, the most significant sectors are manufacturing at 19.7%, trade at 11.6% and agriculture at 7.8%. The fastest-growing sector has been services, at 1.7%.

Exports

In November 2022, manufacturing and agribusiness exported goods worth a combined 5 billion dollars, according to a report published by the deputy minister of industry and trade.

Notably, exports had by then already exceeded the full-year 2021 total by 1.36 billion dollars. The net flow reached 1.92 billion dollars - 21% higher than the previous year.

Leading sectors for foreign direct investment (FDI)

As of the end of 2021, FDI broke down as follows: trade - 1 billion dollars, financial intermediation - 1 billion dollars, oil production - 826 million dollars and transport - 571 million dollars.

Leading source countries for FDI

At present, foreign direct investment comes mainly from investors based in Brazil, the United States, the Netherlands, Spain, Chile and Uruguay.

Strategically located and open to the world, Paraguay is a land of opportunity that offers a distinctive programme of investment in major projects. It allows applicants to obtain permanent residency, and the country's passport no earlier than three years of living in the country as a permanent resident. The programme gives investors and their families the benefits of holding a Paraguayan passport, including visa-free travel to 145 countries such as the Schengen area, the United Kingdom and Singapore; eligibility for a US E-2 visa; the ability to optimise taxes (a 10% rate); and the chance to live in a country with a high standard of living and a favourable climate.

Paraguay's economy in 2025-2026

Paraguay's economy grew by 6.6% in 2025, one of the best results in South America. Growth was driven by consumption and a broad-based expansion across several sectors. For 2026 the central bank expects a slowdown to about 4.2%, with external forecasts around 4.5%. Inflation ended 2025 at 3.1%, and the central bank lowered its target to 3.5%. For investors this means predictable prices and a stable guaraní without the sharp devaluations neighbouring countries are used to.

Investment grade: what changed

Paraguay has joined the short list of South American countries with an investment-grade rating. The first of the three largest international rating agencies granted it in 2024 and affirmed it in 2026, and the second followed in December 2025. The third rates the country one notch lower, with a positive outlook. Investment grade lowers borrowing costs for the state and banks and opens the country to funds whose rules bar them from investing below that level.

Taxes and incentives for investors

• corporate income tax - 10%, VAT - 10%;
• the maquila regime for export manufacturing and services: a single 1% tax on value added in Paraguay or on the export invoice value, duty-free import of inputs and equipment; Law No. 7547 of 2025 updated the regime and kept the 1% rate;
• Investment Law No. 60/90: duty-free import of equipment for approved projects;
• free trade zones under Law No. 523/95 for export trade and manufacturing.

More on rates on the Paraguay taxes page.

What to check before buying land

Law No. 2532 of 2005 created a border security zone: a 50-kilometre strip along the land and river borders with Argentina, Brazil and Bolivia. Nationals of neighbouring countries may not own rural land in this strip, including shares in it, or hold it in usufruct. An exception is possible only by government decree for projects of public interest, such as those creating jobs. The ban does not apply to nationals of other countries, but land near the border deserves an especially careful check before purchase: registration, boundaries and third-party rights.

Where foreign investors are looking

Paraguay's exports rest on soy, beef and electricity from large hydropower plants on the Paraná River. Processing, logistics and a river fleet have grown around them. Cheap electricity attracts energy-intensive industries, while rising incomes in Asunción and its suburbs support construction and retail. Private investors are most often interested in residential and commercial property in the capital, farmland and small local businesses. How to start is covered in our article on opening a business in Paraguay.

How Murblz helps investors in Paraguay

We register companies, open business and personal accounts, obtain tax numbers and check properties before purchase. For those moving with their capital, we arrange permanent residence in Paraguay through investment or a temporary residence permit. The first consultation is free, with an instant answer in the chat.

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