South America
Paraguay tax rates 2026
A strictly territorial 10/10/10 system. Only Paraguayan-source income is taxed, and foreign income is fully exempt.
Territorial
Last verified
The taxes
| Personal income (top) | 10%Personal-service income (IRP) is taxed on a progressive 8%/9%/10% scale, and capital income at a flat 8%. Only Paraguayan-source income is taxable. |
|---|---|
| Corporate income | 10% |
| Capital gains | 8% |
| VAT / IVA | 10% |
| Dividends (WHT) | 8% for residents, 15% for non-residents |
| Interest (WHT) | 15% |
| Royalties (WHT) | 15% |
| Social security (employee) | 9% (IPS) |
| Social security (employer) | 16.5% (IPS) |
| Wealth tax | None |
| Inheritance / estate | None |
| Property tax | Impuesto Inmobiliario, about 1% of assessed value |
How the system works
- Tax system
- Territorial
- Foreign income
- Largely outside scope (territorial)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Not participating
A special regime for new arrivals
Strictly territorial under Ley 6380/2019. IRP reaches Paraguayan-source income only. Corporate IRE is 10%, and dividends are taxed at 8% for residents, Investor Pass holders included, and 15% for non-residents.
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.
Ways to relocate to Paraguay
The residency and citizenship routes that lead here, weighed against the tax picture above.