Investment Grade Stability & Growth.
Paraguay combines the lowest operational costs in Latin America, the world's cheapest hydroelectric energy, a 10% flat corporate tax, and full Mercosur access. For European companies entering the bloc, it is the obvious base of operations.
A Beacon of Stability & Growth
While the region faces volatility, Paraguay stands as the fastest-growing economy in South America over the last 60 years, recently achieving Investment Grade status.
Best Business Climate (FGV)
Business Climate Index (Points)
The lowest tax burden in Mercosur.
Paraguay's 10% flat corporate income tax is the lowest in the entire Mercosur bloc. Combined with 10% VAT and special regimes like Maquila (1% effective tax for licensed exporters), it creates the most competitive fiscal environment in the region.
Maquila Export Regime
European companies establishing factories in Paraguay to serve Mercosur or other export markets can operate under the Maquila regime at just 1% effective tax. Import raw materials duty-free, export finished goods at minimal cost.
The lowest labor costs in Mercosur.
A worker in Paraguay costs approximately $550/month including social security — significantly lower than any other Mercosur country.
World's cheapest industrial electricity.
Paraguay generates 100% renewable hydroelectric energy from Itaipú and Yacyretá dams. Industrial electricity at ~$0.05/kWh — a fraction of regional competitors.
50–70% lower than Buenos Aires or São Paulo.
Pleasant Climate & Environment
Paraguay offers a pleasant warm climate, especially in the transitional seasons of Spring and Autumn. Even winter is mild with an average daily high of 23°C. Summer can be hot, usually in the upper 30s.
Start your Paraguay operation.
We handle everything — from corporate structuring to physical deployment.