Paraguay fiscal and investment landscape

Paraguay has seen significant activity regarding its fiscal environment and tax administration. Brazilian companies have increasingly relocated production to the country, drawn by the ‘10-10-10’ tax model and the Maquila regime. This regime imposes a single 1% levy on exported output and offers exemptions on dividend and import taxes. As of late 2025, 339 companies were operating under the Maquila scheme, with 68% being Brazilian firms from sectors including textiles, footwear, and meat processing. These companies benefit from lower labor costs and cheaper energy prices compared to Brazil.

Concurrently, Paraguay’s tax pressure reached 11.2% of GDP at the end of 2025. Following the integration of tax and customs administrations, the Dirección Nacional de Ingresos Tributarios (DNIT) reported an additional 11.5 trillion Guaraníes in revenue. The DNIT has expanded its taxpayer base by over 270,000 individuals and increased fiscal oversight, resulting in numerous concluded cases involving significant fines and investigations into the alleged use of fraudulent invoices.