Why invest in Paraguay? Taxes, investment grade and stability (2025)

Paraguay has become one of the most attractive investment destinations in South America, and it is no accident: it combines the lowest tax burden in the region, macroeconomic stability and, since 2024, an investment-grade rating. Here is the summary, with data from Paraguay's official Investment Guide (REDIEX, 2025).

The simplest, most competitive tax regime

Paraguay runs the famous "10-10-10" scheme, among the lowest in the world:

• VAT: 10%
• Corporate income tax: 10%
• Personal income tax: 10%
• Dividend tax: 8% (residents) / 15% (non-residents)

For context: in Argentina corporate tax is around 35% and VAT 21%; across much of the region the total tax burden tops 60%. Paraguay runs a simple, territorial system that leaves far more margin for the investor.

Investment grade and stability

In 2024, Moody's upgraded Paraguay to investment grade (Baa3), a select club in the region. In early 2025, Standard & Poor's raised its outlook from stable to positive. Behind it lie years of prudent fiscal management, an independent monetary policy and low inflation — in short, predictability, the word that matters most when you commit capital long term.

Gateway to MERCOSUR

As a MERCOSUR member state, from Paraguay you reach a market of over 295 million people, with rules-of-origin and logistics advantages (the Paraguay-Paraná Waterway carries most of the trade). It is a small country with a huge regional connection.

How investors get in: real estate

Of all the ways to invest in Paraguay, real estate is the most accessible and the one that best combines income and dollar value protection. An off-plan apartment starts at USD 38,900, with direct instalments, no bank, capturing the appreciation of the construction cycle. It is the simplest entry point to this market, with no need to set up a company.

Talk to us

At Rootgold Realty we guide investors from Argentina, Brazil, Spain and across the region to invest in Paraguay apartments: unit selection, payment plans, legal backing and construction tracking, in English, Spanish and Portuguese. Get in touch and we will build a tailored proposal — or first check the yield numbers and the catalogue.