• EXPERTS CONSULTING
• 2017-06-21

Paraguay

Paraguay  has particularly so many reasons for foreign investors to consider it. The first reason being that it offers no restrictions to the foreign ownership of the local companies, capital flow and profit remittances.  The only requirement in the country involves regulations on anti-money laundering where transfers higher than US$10,000 must be justified.Secondly, there are no restrictions on the minimum amount required to invest in the country. Establishing a legal entity in the country is rather simple and smooth. However, residency of the trustees and directors is needed but the process of obtaining it is very quick.Likewise, with your documents, you can obtain a national identity card at a very low cost within a few weeks. Legal entities are required to be registered with the Public Records of Paraguay and constitution done before public notaries. The fees for notaries are somewhere around 0.75% and 2% of an entity’s capital. The expenses and costs of obtaining RUC, a taxpayer’s card, are very low as compared to other countries in the region.Corporate tax in the country is charged at 10% on the re-invested income while undistributed profits are charged at 15%. For companies distributing profits to their partners outside the country, they are charged at rate of 27.3%. VAT is charged at a rate of 10% maximum. As for excise tax, the rate I no higher than 13%.Maquila regime has unique tax regimes for the Maquila companies, charged at a rate of 1% on value of invoices issued by order.Last but not least, there’s a free trade zone regulation in which services and goods from the Customs Territory taken to Free Trade Zone are given similar tax treatment granted to the exportations.In short, Paraguayan government has made so simple for foreign investors to get into the country and start their businesses. Paraguay is so small compared to the large countries in the region such as Brazil, but it has so many great capital incentives and endless investment opportunities in virtually all sectors including real estate, infrastructure, insurance and finance among others.5.