General and Simple IRE10%
Nominal rate for Paraguayan-source business income.
DNIT ↗Accessed 27 AUG 2026
Invest · Operate
Taxation.
The tax framework to understand before choosing residency, a corporate structure or an investment approach.
The 30-second answer
The short answer.
Paraguay has straightforward nominal rates for several taxes—for example, General and Simple IRE at 10%, and VAT at 5% and 10%—but an individual's or company's outcome depends on income source, the applicable regime and international coordination.
Under technical review
Who it is for:
Individuals and companies that need to clarify tax residency, income source, obligations and structure.
An attractive rate is no substitute for analysing residency, source, substance and actual operations.
The analysis starts with Paraguay's territorial system but avoids universal promises: outcomes depend on income type, structure and home-country rules.
VAT rates5% / 10%
The applicable rate depends on the goods, services and circumstances.
DNIT ↗Accessed 27 AUG 2026
The central questionSource
Must be legally determined for each income stream.
Law 6380/2019 ↗In force; validate each case
What it means.
A low nominal rate can be competitive, particularly for operations with genuine substance. The advantage exists only after income is correctly classified and applicable obligations are met.
What it does not mean.
There is no universal “10-10-10”. IRP is not a flat rate applying to every individual, and immigration residency alone neither establishes tax residency nor ends obligations in another country.
What do you need to decide?
Where is the income deemed to arise?When does tax residency begin?Which regime applies to the operation?What changes in relation to the home country?
Suggested reading paths
Path 1 · Individuals and residency · 15 minPath 2 · Companies and operations · 22 minPath 3 · Investment and income · 20 minPath 4 · Preparing for a professional consultation · 12 min
A layered dossier
From context to a verifiable decision.
This page separates facts, editorial analysis and points that still require specific validation.
Residency is not tax residency
Immigration permission and tax status follow different rules. They must be analysed separately.
Territorial source
The key question is not just where tax is paid, but where each type of income legally arises.
Business and compliance
The regime, invoices, withholding, VAT and business income tax form a system; the nominal rate is only one layer.
International coordination
The home country may retain obligations, domicile criteria or anti-deferral rules beyond Paraguay's control.
Editorial transparency
What we have not verified matters too.
The document has been incorporated as a design foundation, but still requires final technical validation before publication as an operational guide.
This page organises general information and does not replace legal, tax, medical, financial or technical advice for a specific case.
Actual status
Indicative overview; professional review pending. Status, source and scope remain visible in every layer.
Disclosed gaps
Incomplete information is marked so an estimate does not become a certainty.
Premium tools
Applied comparison tools, criteria and checklists will be available in The Guide.
Your next decision.
Map the individual, entity, residency, source of each income stream and home country; only then compare structures with a tax professional.