Live Better Overseas
for Less Than You Think
Enter your email to get your FREE guide instantly!
🔒 We respect your privacy. Unsubscribe anytime.
Taxes In Paraguay
For years, Paraguay was an accidental tax haven. What we mean is that it was not a tax haven by design, but the government simply never introduced personal income taxes.
However, this has changed in recent years, but the good news is that, as a resident with no local income, you are not liable to Paraguayan taxes and nobody will bother you. There is simply no culture of taxpaying in Paraguay.
Reviewed By Lief Simon
Lief Simon is the managing editor of Global Property Advisor, Simon Letter, and Offshore Living Letter. He has purchased more than 45 properties, investing in 23 different countries around the world.
Start Your New Overseas Life Today
A world full of fun, adventure, and profit awaits! Sign up for our free daily e-letter, Overseas Opportunity Letter, and we’ll send you a FREE report on the 12 Best Places To Retire Overseas In 2026
We Value Your Privacy! We will not share your email address with anyone else, period.
After years of postponement, a personal income tax was finally introduced in 2012, at the rate of 10%. This tax seems more of a token measure than anything else—it is aimed at the Paraguayan upper-classes, who are, in any case, likely to structure their affairs so as to avoid paying.
The tax does not apply to worldwide income—it only applies to income generated in Paraguay. So, for example, if you own property in Paraguay and receive a rental income, or if you receive a salary from a local company, you are liable to pay income tax.
But if you live in Paraguay off income earned outside the country, you are exempt from income tax and there is no obligation to file a return.
Many retirees or Internet-based workers are taking advantage of this, along with the low living costs, to enjoy life in Paraguay.
For Europeans, Canadians, and indeed anyone who is a non-U.S. citizen, being tax-resident in Paraguay is therefore an excellent proposition. The United States, unfortunately, requires its citizens to pay taxes on their worldwide income even if they don’t live there.
The only way for Americans in Paraguay to escape the tax net is to acquire a second citizenship and renounce their American citizenship.
Other taxes are relatively low in Paraguay. The VAT is also 10%, property tax is between 0.5% and 1% of the cadastral value annually, capital gains tax is 10% (20% on 50% gross) for non-residents and there are no wealth or inheritance taxes.
All bond yields in Paraguay pay no income tax whatsoever, though dividends are taxed at 5%.
As of 2024, Paraguayan authorities launched a new initiative to provide tax benefits and other advantages to foreign shoppers, especially those from Argentine border cities.
President Santiago Peña has signed Decree 2063, which sets up a shopping tourism program for foreign individuals who do not live in Paraguay.
In short, there will be a decrease in the Value Added Tax (VAT) from 1.5% to 1.25%. This program includes more than 150 different products, and items brought in will be priced at 50% of their official value.
Furthermore, the decree lowers airport taxes for these goods and introduces slightly stricter requirements for managing the border economy.
Reviewed By Lief Simon
Lief Simon is the managing editor of Global Property Advisor, Simon Letter, and Offshore Living Letter. He has purchased more than 45 properties, investing in 23 different countries around the world.
Start Your New Overseas Life Today
A world full of fun, adventure, and profit awaits! Sign up for our free daily e-letter, Overseas Opportunity Letter, and we’ll send you a FREE report on the 12 Best Places To Retire Overseas In 2026
We Value Your Privacy! We will not share your email address with anyone else, period.
Paraguay’s population is more alike than that of many other South American countries. Most Paraguayans have European and Guaraní heritage. The Guaraní culture is evident in folk art and festivals, and Guaraní was recognized as an official language in the 1992 constitution.
I first came to Paris in 2004 and finished high school in one of the city’s bilingual schools… And that...
Luxury is not the same as jet set. Living a jet-set life, you’d expect limos and private planes, an entourage...
The tiny finger of land that pokes out from Panama City’s southeastern corner and into the Pacific Ocean is San...
This story unfolds on the West Coast of Northern Cyprus, where Larry and Mary returned to see the progress of...
We Value Your Privacy! We will not share your email address with anyone else, period.
As seen in
Top Countries
Budgets
Affordable
Resources
Real Estate
Overseas Property Alert
How To Become Independently Wealthy And Fund The Lifestyle Of Your Dreams
Buying Real Estate For Cashflow
Discover tips and strategies used by global property investing veterans
Explore Our Latest Posts
Learn how to invest and purchase property abroad…
Conferences
2026 Live And Invest In France Conference
2026 Offshore Wealth Summit
2027 Live And Invest In Belize Conference
Contact Our Events Team:
Toll-Free U.S. and Canada:
1 (888) 627 8834
From Outside North America:
1 (443) 599 1221
Working Hours
Monday – Friday 08:00 am – 17:00 pm EST.
Reach us with your questions by email at: events@liveandinvestoverseas.com
Store
Overseas Havens Reports
Conference Kits
Lahardan Books
Services
Free Report
FREE Report
The 12 Best Places to Retire Overseas in 2026
Simply sign up for our FREE daily Overseas Opportunity Letter, and we’ll immediately email you our editors’ latest research report… absolutely FREE
We Value Your Privacy! We will not share your email address with anyone else, period.
Follow Us:
© 2008 - Live and Invest Overseas - All Rights Reserved.
From the desk of Kathleen Peddicord
Founding Publisher, Live and Invest Overseas
