Asuncion’s Emergence as a Thriving Business Hub

By EasyCo Updated October 10, 2026

Asunción, the capital of Paraguay, has become one of South America’s quieter success stories. Its metropolitan area concentrates the country’s finance, services and corporate headquarters, and more foreign companies now use it as a base for MERCOSUR. Here is what drives that growth in 2026.

Investment-grade economy

Paraguay reached investment grade with Moody’s (Baa3, July 2024) and with S&P (BBB-, December 2025). The ratings reflect low public debt, steady growth and a record of macroeconomic stability. Fitch rates the country one notch below investment grade.

Gateway to MERCOSUR

MERCOSUR was founded by the Treaty of Asunción in 1991, and Paraguay sits between Brazil, Argentina and Bolivia. The Paraguay–Paraná waterway links Asunción’s river ports to the Atlantic, and Paraguay runs one of the largest river barge fleets in the world. The Bioceanic Road Corridor, under construction across the Chaco, will connect Brazil with Chile’s Pacific ports.

Clean, abundant energy

The Itaipú and Yacyretá hydroelectric dams supply nearly all of Paraguay’s electricity, which supports energy-intensive industries and data centres.

A simple tax system

Corporate income tax (IRE) is 10%, VAT is 10% (5% on some goods) and personal income tax is at most 10%. Dividends are taxed at 8% for residents and 15% for non-residents. See Paraguay’s tax system for investors.

Services, talent and quality of life

Asunción hosts the main banks, law and accounting firms, and a growing number of shared-service and software companies. The workforce is young, and operating costs are low compared with Brazil or Argentina. The city offers a lower cost of living than most regional capitals.

Starting a business in Asunción

Most foreign founders use an EAS, which allows one shareholder and has no minimum capital. See the types of companies in Paraguay and how to set up a company in Paraguay.

Get help from Easyco

Easyco coordinates the company setup in Paraguay up to the issue of the RUC, and supports companies afterwards with tax, accounting, payroll and company compliance, including a registered office address. Contact us to discuss your project.