Latin America · Southern Cone
Paraguay
The cheapest genuine territorial-tax residency in the world, with a three-year path to citizenship — and, since April 2026, a direct permanent residency for investors that undoes the worst of the 2022 tightening.
Tax position
- Income tax (top)
- 10% (IRP, progressive 8–10% on Paraguayan-source income)
- Capital gains
- 8–10% under IRP where Paraguayan-source; foreign-source gains are outside scope
- Wealth tax
- none
- Inheritance tax
- none
- Special regime
- Strictly territorial under Ley 6380/2019 — IRP reaches Paraguayan-source income only. Corporate IRE is 10% and dividends 15% (8% for Investor Pass holders).
- Territorial
- Yes — foreign-source income generally outside scope
- CFC rules
- No
- Exit tax
- No
- CRS
- Participating
Is Paraguay actually right for your family?
We will tell you if it is not. That is the whole service.