Country tax profile · 2026
Paraguay income tax
What a nomad, retiree or founder needs before moving to Paraguay: the real rate, what actually gets taxed, and the residency bar you must clear. Local currency: PYG.
Paraguay tax calculator
Enter your income to estimate what you would pay in Paraguay, as an employee or running your own company, and see the best-value cities. Get the full breakdown plus a vetted advisor by email.
How much is income tax in Paraguay?
Paraguay taxes personal income at rates up to 10%. A 100% territorial system. Foreign source income is exempt: only what is generated inside Paraguay is taxed, so no IRP, no IRE and no tax on foreign dividends.
Compiled by MyNomadWorld for Paraguay and currently being re-verified against primary sources. Confirm with a local adviser before relying on it.
Capital gains, wealth & property tax
- Capital gains: 10% (corporate, as part of profits); individuals 8% flat
- Wealth tax: No net wealth/net worth tax
Inheritance & gift tax in Paraguay
Paraguay imposes no inheritance, estate or gift tax N/A - no tax regardless of heir relationship
Corporate tax & VAT
The standard corporate profits tax is 10%.
How to become a tax resident of Paraguay
Present in Paraguay more than 120 days in a calendar year (physical-presence test)
Cost of living & lifestyle
Cost of living is about 35% of the US level, with average purchasing power near $19k (PPP). Pick a city below to see its monthly climate and cost.
Banking in Paraguay
You will want a local or multi-currency account for rent, bills and getting paid. See our guide to the best banks in Paraguay.
Climate & cost by city
Average monthly temperature (°C) and rainfall. Climate: Open-Meteo ERA5; cost of living: World Bank PPP (same-year pairing), omitted where unavailable.
Paraguay tax treaty guides
Detailed double-tax-treaty guides (withholding rates on dividends, interest and royalties) are available for 4 of Paraguay's partners:
Who can help you in Paraguay
Vetted partners for the move: immigration and tax lawyers, relocation services, banking and eSIM, guides and local experts. One Gold partner and up to three standard listings per country.
Expats in Paraguay
The free Paraguay expat community: who is already there, who is arriving, the Telegram group and straight answers on the paperwork. Expats in Paraguay →
Members see each other by first name, origin and plans. Emails stay private.
Planning a move to Paraguay?
The headline rate is the easy part. Residency, banking and exiting your current tax net are where it goes wrong. Get matched with a vetted Paraguay advisor.
Talk to a Paraguay advisor →Paraguay income tax FAQ
How much is income tax in Paraguay?
Paraguay taxes personal income at rates up to 10%. A 100% territorial system. Foreign source income is exempt: only what is generated inside Paraguay is taxed, so no IRP, no IRE and no tax on foreign dividends.
Does Paraguay tax capital gains?
10% (corporate, as part of profits); individuals 8% flat
How do you become a tax resident of Paraguay?
Present in Paraguay more than 120 days in a calendar year (physical-presence test)