Why Paraguay’s 10% Tax and Dollar-Friendly Banks Are Attracting Global Startups

By easyco Updated October 10, 2026

In Latin America, simplicity is rare, but Paraguay offers it. A 10% corporate tax, banks that work in US dollars and a simple company type, the EAS, make it a natural base for startups, service companies and holding structures in 2026.

A simple 10% tax

10% corporate income tax (IRE) on net profit
10% VAT, or 5% on some goods
Dividends taxed at 8% for resident shareholders and 15% for non-residents
No wealth tax, and income tax applies mainly to Paraguayan-source income

More detail: Paraguay’s tax system for investors.

Dollar-friendly banking

Paraguay has no exchange controls, and most banks offer business accounts in both guaraníes (PYG) and US dollars, with international SWIFT transfers. Banks apply know-your-customer checks to foreign-owned companies, so expect to document the shareholders, the beneficial owners and the source of funds. See how to open a corporate bank account in Paraguay.

What you need to get started

Requirement	Notes
Company (EAS, S.R.L. or S.A.)	The EAS allows one shareholder, 100% foreign ownership and no minimum capital
Legal representative	Required. In practice, a person with a Paraguayan cédula
RUC from the DNIT	Needed to invoice and file taxes
Bank account (PYG and USD)	Opened once the company and RUC exist
Monthly filings	VAT returns are due every month, even with no activity

Why startups choose Paraguay

Low tax on business profits
Dollar accounts and no forced conversions
Investment-grade ratings from Moody’s and S&P
A location between Brazil, Argentina and Bolivia
Low costs for administrative and back-office teams

Next steps: 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.