Quick answer — Paraguayan EAS at a glance. A Paraguayan EAS (Empresa por Acciones Simplificada) can be registered online through the SUACE one-stop system, often within days, with a single shareholder and no fixed minimum capital. Corporate income tax (IRE) is 10%, and Paraguay taxes mainly Paraguayan-source income. Dividends face withholding (8% for residents, 15% for non-residents). Residency is relatively accessible, but it does not by itself end tax residency in your home country.
Paraguay has some of the lowest tax rates in the Americas: 10% corporate tax, 10% VAT and a personal income tax capped at 10%, all within a mainly territorial system. Combined with an accessible residency process, it has become popular with location-independent founders looking for a low-cost territorial base.
The weak point of Paraguay strategies is usually not Paraguay itself, but the founder's previous country. Obtaining a Paraguayan residence card is not the same as becoming a Paraguayan tax resident, and neither automatically ends tax residency elsewhere. Founders who spend little time in Paraguay can find their old country still taxing them.
It does not suit founders who get Paraguayan residency but keep living elsewhere, or who need a company with strong international banking reputation. It is not designed for locally employed expats or retirees.
Comparing Latin American options? See our guide to open a company in Latin America.
If you are comparing territorial options, see the Panama SA for territorial taxation and the Uruguayan SAS and the tax holiday.
Paraguay offers temporary and then permanent residency, with conditions that have changed in recent years. A tax residency certificate is a separate document with its own conditions, such as time spent in Paraguay or local economic ties. Your previous country will look at where you actually live, your home and your family — not just your residence card.
Paraguay taxes mainly income from Paraguayan sources. Services provided from Paraguay to foreign clients can raise source questions, so get local advice on how your activity is classified.
Amounts are indicative.
About 17% overall on Paraguayan-source profits, lower if income is foreign-source and outside the IRE.
The Paraguay Business Bank Comparison Guide compares the main banks for foreign-owned companies — get it when you start your Paraguayan setup with Heavnn.
Corporate income tax (IRE) is 10%. Dividends are subject to withholding of 8% for residents and 15% for non-residents.
Paraguay taxes mainly Paraguayan-source income. How your activity is classified matters, so check the source rules.
Not automatically. Tax residency has its own conditions, and your previous country may still consider you resident if you don't really live in Paraguay.
It is a simplified joint-stock company that can be formed online with one or more shareholders and flexible statutes.
Registration through SUACE is often completed within a few days once documents are ready.
Paraguay is cheap — but only works if you really leave your old tax residency. Heavnn checks both sides.
Start your Paraguayan setup with Heavnn →
This guide is general information, not tax or legal advice. Rates and fees are indicative as of October 2026.
