Taxes in Paraguay

Paraguay tax rates in 2026: at a glance

Paraguay taxes only income earned in the country, at some of the lowest rates in Latin America: 8-10% for individuals and 10% for companies. Salary and fees from abroad are not taxed. Here are all the main taxes in one table.

Dollar amounts are at about 5,860 guaraníes to the dollar, rounded up.

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Compare taxes in 146 countries: relocation taxes 2026

Who is a tax resident

An individual is considered a tax resident of Paraguay if they spend more than 120 days in the country within a year.

Paraguay tax residency: 120 days, how to get it

Paraguay sets a lower threshold than most countries: more than 120 days in a calendar year. Four months in Asunción and you are a tax resident of a country that taxes only local income.

A resident pays 8-10% income tax only on Paraguayan income; foreign income is not taxed. A non-resident pays only on Paraguayan income, withheld at source. The tax residency certificate is issued by Paraguay's National Tax Service.

The law does not stop you from confirming the status on your own. But mistakes cost more: without an ID card and tax number no certificate is issued, and your former country does not let go. Murblz support removes these risks: we arrange temporary residency or permanent residency straight away and a tax number, count days and obtain the certificate. We guarantee professional work and a transparent process, and in most cases a result on the first filing.

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How dividends and investment income are taxed in Paraguay

Dividends from a Paraguayan company are subject to a separate dividend tax: 8% for residents and 15% for non-residents. The company withholds it on payment, and the money is not taxed again as personal income.

Investment income from Paraguay - rent, interest, sales of property and company shares - is taxed at 8%. Interest on deposits in Paraguayan banks and trades on the local stock exchange are exempt.

Income tax on work and services is 8-10%, and it is due only if that income exceeds about $14,000 a year. A resident's foreign income is not taxed.

Income tax on work and services

Tax is due from those whose income from work and services exceeds 80 million guaraníes a year, about $13,700. The threshold has not changed since 2020. Documented personal and family expenses are deducted: housing, food, healthcare, education, clothing, so the real burden is usually below the rate. Dollars at the Central Bank of Paraguay rate of 05.10.2026, about 5,860 guaraníes per dollar, rounded up.

Example. Service income of 200 million guaraníes, about $34,200, with documented expenses of 120 million. Net income is 80 million: 8% on 50 million and 9% on 30 million, 6.7 million guaraníes in total, about $1,200, or 3.4% of income.

Selling and renting property

Tax on a property sale is usually withheld at closing. To be taxed on the actual gain, keep the registered purchase deed and expense receipts.

Business taxes

Interest and returns on capital placed abroad are taxed when received by a Paraguayan company or entrepreneur. An individual receiving salary and service fees from abroad does not pay this tax.

Crypto and mining in Paraguay

Paraguay has no separate crypto tax. An individual's gains can be subject to 8-10% income tax only as local income, while gains on foreign exchanges and foreign income in general are not taxed. Mining as a business pays 10% business income tax, and cheap hydroelectric power has made the country one of the region's mining hubs.

From 1 January 2026 crypto transactions above $5,000 a year must be reported. More in our article on crypto tax in Paraguay.

VAT, contributions and property tax

The law treats property received free of charge in Paraguay as capital income, so plan family asset transfers in advance.

Double tax treaties

Paraguay has few treaties: they are in force with Chile, Taiwan, the UAE, Uruguay and Qatar. For most newcomers this is not a problem: Paraguay does not tax foreign income, so double taxation rarely arises.

What matters more is leaving your previous country's tax residence properly and obtaining a Paraguayan tax residence certificate. It is issued to those who spend more than 120 days in the country in a year, and it is what foreign banks and tax offices ask for.

Return and deadlines

• a tax number is obtained from the National Tax Office with the foreigner's identity card, issued after residence;
• the tax year is the calendar year;
• the annual income tax return is filed in March, the date depending on the last digit of the tax number;
• deductible expenses are proven by electronic receipts issued to your tax number;
• a tax residence certificate is issued after 120 days in the country in a calendar year.

What changed in 2026

The stronger guaraní raised the threshold in dollars and made living costs in Paraguay higher for those earning in dollars.

Who Paraguayan tax residence suits

• remote workers and freelancers with foreign clients: salary and service fees from abroad are not taxed;
• business owners who need a residence certificate from a low-tax country;
• investors in local property and business: tax on a sale is at most 2.4% of the price, on dividends 8%;
• families who want to live in the country 120 days a year and travel the rest of the time.

Common mistakes

• getting residence but not spending more than 120 days in the country and ending up without a certificate;
• not exiting the previous country's tax residence, which keeps taxing worldwide income;
• running business through a Paraguayan company and forgetting that its capital income from abroad is taxed;
• not getting electronic receipts on your tax number and losing the expense deduction;
• selling property without purchase documents and paying tax on 30% of the price instead of the actual gain.

Comparison with neighbours

Paraguay offers the lowest rates in the region and the lowest residence threshold: 120 days a year.

What we do

We arrange residence, the identity card and tax number, count days for residence, obtain a tax residence certificate, help you exit your previous tax residence, register a company if needed and handle returns. We fix our fee in writing after a free consultation.

More on statuses: Paraguay residence, Paraguayan citizenship by naturalisation and giving birth in Paraguay and citizenship for the child.

Why Paraguay's tax system is convenient

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