REASONS TO INVEST IN PARAGUAY

Attractive tax incentives for investment
Paraguay has various laws and regimes that provide extensive benefits to investors. The main ones are:
- The acceleration of the processes for the opening of companies.
- The granting of residence documents in the country through abbreviated procedures.
- The exoneration or temporary suspension of the customs tariffs affected to the importation of raw materials and machinery.
- The exoneration or temporary suspension of the payment of the Value Added Tax (VAT) applied to the importation of machinery and raw materials for industries.
- Exemption from all national taxes in exchange for a single tax in the cases of the Free Zones Law and the Maquila Law.
- The Public-Private Partnership Law (APP), for public-private partnership contracts.
- Exemption from Value Added Tax (VAT) on exports.
- The recovery of the tax credit for Value Added Tax payments made in the national market to local suppliers.
- The reduction or exoneration of national taxes, rates and contributions.
- The guarantee of tax invariability for a term of up to 20 years, depending on the amount of the investment.
- More favorable Mercosur rules of origin in relation to the percentages of use of raw materials outside the zone.
Investment Law 117/91 aims to stimulate and guarantee national and foreign investment in a framework of total equality to promote the economic and social development of Paraguay. Likewise, the law establishes the following principles:
- Equality:foreign investment receives the same treatment as national investment.
- Property rights: for national and foreign investments, without any other limitation than those established in the Constitution and the Laws.
- exchange freedom: The entry and exit of capital, the remittance abroad of dividends, interest, commissions, royalties for technology transfer and other concepts are guaranteed without restrictions, with the proviso that all exchange operations, remittances or transfers will be subject to taxes. established in the law.
- Free trade: Free trade is guaranteed, which includes freedom to produce and market goods and services in general, free pricing (with the exception of certain goods regulated by law) and freedom to import and export goods permitted by law.
- Universality: Foreign investments are welcome in all sectors of the economy, except for the exceptions established in specific local laws such as the hydrocarbons, mining, telecommunications, and forestry sectors, among others that have specific regulations.
- Automaticity: foreign investors are authorized to invest in other sectors of the economy without the need to obtain prior authorization, unless it involves some type of investment subject to a special regime.
- Exchange regime: By virtue of which exchange operations are carried out within a free exchange market.