LATAM’s Last Untapped Market? Why Founders Are Investing in Paraguay (2026)

By easyco Updated October 10, 2026

Compared with Brazil, Mexico or Colombia, Paraguay still gets little attention. That is changing. With investment-grade ratings, a 10% corporate tax and low operating costs, more founders now see it as an early-mover market in Latin America.

Why Paraguay, and why now

Factor	Paraguay in 2026
Credit rating	Investment grade: Moody’s Baa3 (2024), S&P BBB- (2025)
Corporate income tax	10% (IRE)
Foreign-source income	Generally not taxed at company level (territorial system)
Currency	Guaraní, with USD widely used and no exchange controls
Company structure	EAS: one shareholder, no minimum capital, 100% foreign ownership
Residence	Temporary residence for up to 2 years under Law 6984/2022

How Paraguay compares on corporate tax

Country	Corporate income tax (general rate)
Paraguay	10%
Chile	27%
Mexico	30%
Colombia	35%
Brazil	Up to 34% (IRPJ + CSLL)

Where founders are investing

Logistics and river transport, using the Paraguay–Paraná waterway
E-commerce and regional distribution
Agribusiness and agro-industry
Energy-intensive industries and data centres, powered by hydroelectricity
Software and shared services for clients abroad

Why many founders use Paraguay as a base

Lower operating costs than larger neighbours
Billing clients in US dollars
A holding company for Latin American operations
A simple tax system with clear rates; see Paraguay’s tax system for investors

The bottom line

Paraguay is small, stable and still relatively uncrowded. Founders who set up now can build relationships and market share before competition grows. Start with 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.