TRADE AND INVESTMENT
Economy of Paraguay
Paraguay, thanks to its extensive and fertile lands, is characterized by an agricultural economy but with a high degree of participation in the commerce and service sectors. Soybean, wheat, corn and cattle production represent the main activities of the agricultural sector. In the area of commerce and services, the main activities are centered on government services, financial intermediation, transportation, and communications.
The industrial sector has been growing mainly through constructions. With incentives for foreign investment such as the Maquila Program, Paraguay currently offers good opportunities for the establishment of new industries that can take advantage of the labor force, low tax burden and abundant energy that the country offers.
Thanks to the Itaipu and Yacyretã binational dams, Paraguay is currently the largest net exporter of electricity in the world. This represents a great opportunity for electro-intensive investments that require a constant and accessible supply of electricity for their operation.
In 2013, Paraguay recorded the highest economic growth rate in South America with a 13.6% increase in GDP. In 2014 and 2015, Paraguay recorded growth rates of 4.7% and 3% respectively, the highest in MERCOSUR and higher than the average for the region.
The Commercial Section of the Embassy provides information and guidance to those interested in investing in or acquiring products from Paraguay, as well as to Paraguayan businessmen in their commercial relations with Japan.
Digital Materials
Investment Guide 2021
JICA Material (spanish)
Investing in Paraguay
Paraguay has become a land of opportunity for foreign investment – the time to invest is now! Learn more about what Paraguay has to offer through the following video (with Japanese subtitles).
The Republic of Paraguay offers multiple reasons to host foreign investments that are looking for the best conditions to maximize their operations and facilitate access to important markets.
Thanks to its open trade policy, Paraguay offers:
Incentives for investment in Paraguay
ACCESS TO ATTRACTIVE MARKETS
- Strategic location in the center of the highest income markets in the region (Brazil, Argentina and Uruguay).
- Products with 40% MERCOSUR components and 60% imported components from outside the region can be considered MERCOSUR products and benefit from lower import tariffs in the region.
LOW TAX BURDEN
- Corporate income tax: 10%.
- Value added tax (VAT): 10%.
- Personal income tax: 10% on net profits (incomes-expenses) applicable to income over US$ 3,000.
LOW PRODUCTION COSTS
- Abundance of natural resources: Paraguay has ideal climate conditions and fertile land. It is located on the Guarani Aquifer, which ensures abundant water supply at very low costs.
- Abundant electricity: Paraguay is the largest per capita producer of electricity and the largest exporter in South America. It has abundant clean and sustainable energy for industrial investments.
- Young and trainable workforce: Paraguay has the youngest population in South America, with 74% of the population under 34 years of age.
- Competitive labor costs: The current minimum wage is around US$430 per month, with social security contributions of 16.5%.