Paraguay is still an exotic destination for investors. There are many reasons for this – one is definitely the distance, which is over 11 thousand kilometers in a straight line. Most people associate the name of this country, but few know much about it, and it is even confused with Uruguay – a country with which it does not share a border.
That is why this site and our team were created – to present Paraguay as a country full of potential and to showcase the opportunities it offers for both investors and individuals seeking a stable alternative for living and doing business. We want to not only share knowledge about the real estate market but also bring closer the history, culture, and realities of daily life in Paraguay.
Why Choose Paraguay?
In light of growing geopolitical tensions and uncertain economic situations worldwide, more and more investors are looking for stable and resilient alternatives to global crises. The year 2025 has brought more turbulence, including a new round of trade war initiated by the Trump administration in April of this year. In such an environment, capital not only seeks safe havens but also places where it can gain long-term.
Paraguay is one of the few countries that remains free from armed conflicts and political tensions. Moreover, it has key resources that make it a self-sufficient and resilient country in the face of many threats:
- Very fertile agricultural land, where crops can be grown even twice a year
- Cheap electricity, entirely sourced from the Itaipú hydropower plant – one of the largest in the world, with a capacity of 14,000 MW
- Large reserves of fresh water – Paraguay lies atop one of the largest underground water reservoirs in the world – the Guarani Aquifer
This natural reservoir stretches beneath the territories of Paraguay, Brazil, Argentina, and Uruguay, with a volume exceeding 37,000 km³ – enough to meet the water needs of all humanity for many decades. Paraguay has access to about 13% of this resource, which, given its relatively small area and population, is a huge strategic asset.
Stable Demographics and Growth Potential
Paraguay currently has about 7 million inhabitants, but its natural growth rate is one of the highest in the region – an average of 2.4 children per woman. This means the population will gradually increase, along with demand for infrastructure, housing, and services.
In combination with access to resources, a stable currency, and cheap energy, this country has all the conditions to become the economic leader of South America in the coming years – at least in terms of quality of life, energy independence, and investment attractiveness.
The Paraguayan economy mainly relies on the agricultural sector, where soybean cultivation dominates, along with cattle breeding, mainly in the northern territories of Chaco, where farms often cover several dozen thousand hectares.
Conclusions?
In a situation of global uncertainty and continuous economic turmoil, it is worth considering diversifying the location of capital. And if you are looking for a calm, sovereign, independent, and long-term perspective country – Paraguay may be one of the most interesting destinations of the 21st century.
How Does the Tax System Work in Paraguay?
It is a country with one of the most friendly tax systems in South America, characterized by simplicity and low rates. It’s no coincidence that more and more investors and entrepreneurs are choosing to start their activities or relocate their tax residency here.
Low Rates, Simple Rules
In Paraguay, maximum tax rates are set at 10% – and this applies to:
- personal income tax (PIT),
- capital gains tax,
- as well as VAT (locally called IVA – Impuesto al Valor Agregado).
This is a system based on the principle: pay, but wisely – which is why many citizens and residents do not avoid taxation, as it simply… pays off.
RUC and the Marangatu Platform – Basics of the System
After obtaining a Paraguayan identity document (cédula de identidad), you can apply for a local tax number – RUC (Registro Único del Contribuyente). This is the equivalent of a Polish NIP, which allows us to issue invoices, conduct business, and settle accounts with the local tax office.
With the issuance of a RUC number, we gain access to the state online platform, Marangatu, which serves as the center for managing all tax matters. After logging in, we can specify the type of business activity we are conducting – this could be, for example, property rental, intangible services, product sales, and many more.
What Does Practice Look Like?
In Paraguay, every purchase can be a cost – including those at restaurants or shops. Simply inform the seller that you want an invoice while paying and then provide your RUC number. The seller will issue the invoice, and if they operate within the electronic system – the document will automatically appear in your Marangatu account.
This is very intuitive and resembles running a sole proprietorship in Poland – with the difference that:
- there is no ZUS or fixed contributions regardless of income,
- the system is much simpler to operate,
- and the reporting obligations are limited
Tax Settlements – What and When?
The tax system is based on two main declarations:
IVA Declaration (VAT) – submitted monthly
- We balance sales and cost invoices
- The system automatically calculates the tax to be paid
IRP Declaration (Impuesto a la Renta Personal) – submitted once a year
- It concerns our personal income
- It is the equivalent of the Polish annual PIT declaration
- There are different types of IRP, and our accountant will appropriately match them to the activities we conduct
Invoices: Electronic and Paper
In Paraguay, there are two types of invoices:
- Electronic invoices – issued directly by the Marangatu system; they appear automatically on the taxpayer’s account
- Paper invoices – issued “traditionally” and requiring manual entry into the system if we want to include them as costs/sales
The topic of the Paraguayan tax system is very extensive, which is why we will gradually publish separate blog articles on our site, detailing:
- how to settle various types of business activities,
- how to legally optimize costs and revenues,
- and what obligations an investor, landlord, freelancer, or business owner has.
Summary
Paraguay is a country that at first glance may seem distant, unknown, and exotic. However, upon closer inspection, it turns out to be one of the most underrated players in the global puzzle – a neutral, resource-rich, energy-independent, demographically stable country free from geopolitical tensions.
In a world full of economic turbulence, trade wars, inflation, and uncertainty, Paraguay stands out with its calmness, simplicity, and real opportunities – both for individuals seeking a safe haven and for those thinking long-term about investments or wealth diversification.
Land, water, energy, stable currency, population growth, low taxes, and cheap living are not just slogans from a marketing brochure, but real foundations that place this country among the most interesting destinations of the 21st century.