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Paraguay

Americas Β· PY Β· PRY Β· Republic of Paraguay
10.00%
CORP TAX
6.5/10
TRUST
4/5
BANKING
3–8 days
SETUP

TAXATION

Corporate Tax10.00%
Personal Income Tax10.00%
VAT / GST10.00%
Territorial TaxationYes
CFC RulesNo
Tax Treaties5
Transfer PricingYes
Tax-Free ZonesYes
Crypto TaxTaxed as Capital Gains

FORMATION

CSP Fee (Low)$200
CSP Fee (High)$1, 000
Timeline3–8 Days
Online RegistrationYes
Min Directors1
Min Shareholders1
Local DirectorYes

BANKING & COMPLIANCE

Banking Ease4/5
Privacy Index4
Audit RequiredNo
Annual FilingYes
BO RegisterNo
UBO DisclosureYes
FATCA CompliantYes
AEOI ParticipantNo
Correspondent BankingGood

SUITABILITY SCORES

Overall Trust6.5/10
Holding Company3/5
Trading Company4/5
IP Holding5/5
Startup4/5
Crypto3/5
Asset Protection4/5
Residency by IncorpYes

incorporator AI Assessment

AUTOMATED ANALYSIS Β· PARAGUAY
MODERATE

Paraguay is a Americas jurisdiction offering low corporate tax at 10% with strong reputation (trust score: 6.2/10). Company registration typically takes 3–8 days with formation costs ranging from $200.00 to $1000.00. Banking ease is rated 4/10. The jurisdiction operates a territorial tax system.

ADVANTAGES
  • +Low corporate tax rate
  • +Territorial taxation system β€” foreign income not taxed
  • +Tax-free zones available for qualifying businesses
  • +Fast company registration process
  • +Affordable formation costs
DISADVANTAGES
  • βˆ’Challenging banking environment for foreign companies
  • βˆ’May require local presence or registered agent
  • βˆ’Compliance requirements may be complex for foreign entities
BEST FOR
Holding companiesTech startupsTax optimization
RISK FACTORS
Regulatory changes may affect tax and compliance obligationsCurrency exchange risks for non-USD denominated jurisdictions

AI-GENERATED ASSESSMENT Β· NOT LEGAL OR FINANCIAL ADVICE Β· VERIFY WITH QUALIFIED PROFESSIONALS

ENTITY TYPES

Limited Liability Company
LLC
limited

Flexible entity with pass-through taxation and liability protection.

Timeline: 2–13d
Compliance: low
Min shareholders: 1
Min directors: 1
HoldingTradingIPCrypto
LAST UPDATED FEB 22, 2026
Corporation
Corp
limited

Standard corporation structure for venture-backed companies.

Timeline: 1–26d
Compliance: high
Min shareholders: 1
Min directors: 1
HoldingTradingIP
LAST UPDATED FEB 22, 2026
Sole Proprietorship
SP
unlimited

Simplest business structure for individual entrepreneurs.

Timeline: 4–8d
Compliance: low
Min shareholders: 1
Min directors: 1
Trading
LAST UPDATED FEB 22, 2026

SERVICE PROVIDERS IN PARAGUAY

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