Paraguay Economic Overview & Business Opportunities
A business-friendly South American destination, Paraguay has always welcomed foreign investors and entrepreneurs from across the globe to come and enjoy the benefits and business opportunities that are available in the country.
Paraguay Economic Overview
Paraguay’s sound, macroeconomic base and solid financial system have had a huge role to play in the country’s extraordinary economic growth over the past several years. The last 15-years alone saw the country achieve an impressive economic and shared prosperity, alone with a growth rate of 4.5% per year on average from 2004-2017. Since 2003, the country’s extreme poverty rate has fallen dramatically, and its monetary policy has remained consistent with the inflation objectives that it set.
From 2018 to 2020, Paraguay’s economy is expected to remain close to 4%, with a much larger contribution coming from domestic demand. The government of Paraguay has also recognized the need for the country to diversify its economy, and has taken necessary steps to ensure that this issue is being addressed. The government constantly promotes the country’s low labor costs, cheap energy and single-digit tax rates on foreign firms to continue to entice foreign investment into the country. The government is continuing its efforts to attract even more foreign investment into the country by improving its infrastructure facilities, increasing private participation in state-run enterprises and reforming the public sector.
Paraguay Business Opportunities
Setting up a business in Paraguay is an exciting prospect indeed for investors. With the availability of free trade zones in the country, commercial activities conducted within these zones are exempted from the municipal, national and even departmental tax rates imposed. Any goods and services which are also imported into Paraguay and received within these free trade zones will receive the same treatment which is granted to exports, which means these goods and services will be exempted from VAT Taxes too.
Another great reason to consider investing in Paraguay is because of the low tax rates available. Investors who setup a business in the country will get to enjoy corporate tax rates which range between 10% on reinvested earnings, and 15% on undistributed earnings and profits. Excise rates in Paraguay do not exceed a rate of more than 13%, and VAT rates imposed in the country are capped at a maximum of 10%. This makes setting up a business in Paraguay a very promising prospect indeed.
Paraguay has plenty of sectors for investors to tap into, depending on which segment of the market they would like to be involved in. The country for example, is the 10th largest exporter of what, the 8th largest exporter of beef and the 7th largest exporter of corn. It is also the 6th largest producer of soy, the 5th largest exporter of chia and soy flour and the 4th largest exporter of yucca flour and soy oil. Paraguay is the second-biggest stevia producer and the number one exporter of organic sugar.
Explore Business Opportunities in Paraguay with 3E Accounting
Are you keen on exploring and starting a business in Paraguay? 3E Accounting can assist you with all your Paraguay company incorporation services needs. For more information about setting up a business in Paraguay, visit our website today or contact us at 3E Accounting for more information.
- Paraguay Company Setup
- Start a business in Paraguay
- Business Management
- Human Resources
- Immigration Services