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5 Reasons Why You Should Invest in Paraguay


Many investors are unaware of the strong returns on offer when you invest in Paraguay — one of Latin America’s most stable markets with a recent history of consistent growth.

A Biz Latin Hub graphic of a map of paraguay, which is a strong market to invest in
Paraguay’s map and key cities

It is that includes an almost five-fold increase in gross domestic product (GDP) between 2002 and 2020 — even despite a recent minor decline exacerbated by the COVID-19 pandemic.

Speaking in September, Inter-American Development Bank (IDB) President Mauricio Claver-Carone labelled Paraguay one of the best countriesIt is possible to do business in Latin America and Caribbean

“If I were a foreign company, one of my first destinations would be Paraguay, due to the current investment environment that is ideal for doing business,” Claver-Carone was reported as saying during a meeting with Paraguayan President Mario Abdo Benítez.

SEE ALSO How to Register a Business in Paraguay

Claver Carone claims that Paraguay is one of five countries in the region which saw an increase in foreign direct investment for 2020.

You can find out five reasons to invest in Paraguay below. You can also go to contact us nowWe would love to help you do business in our country.

Five reasons you should invest in Paraguay

Paraguay is a great place to invest for entrepreneurs and companies.

1. An innovative, young workforce
Paraguay has one of the most youthful workforces in the area, at an average of 26.3years old. The workforce has also been described as increasingly urbanizedWith 62.5% population currently living in urban areas

A Biz Latin Hub graphic showing English proficiency in Southern Cone nations, with increasing proficiency in Paraguay another reason to invest
English proficiency has been increasing in Paraguay over the past few years.

The country has a Gross National Income (GNI). $5,140 per capita in 2020High-quality employees are readily available. 

Paraguay’s English proficiency has increased in recent years. among the top five nationsIt is a region that offers English proficiency making it attractive to do business.

2. Strong real estate returns
Paraguay is home to one of most important real estate segments in the region. returns on investment often up to 50% higherBuy-to-let is more popular than other regions in the area.

Paraguay’s low tax regime (VAT at 10%) enables strong returns. This gives even more reasons to invest.

Paraguayan investors are increasingly interested in Paraguayan property markets. In recent years, a significant amount of capital has come from neighboring Argentina.

3. A more international outlook
Paraguay, once economically isolated from the rest of the world was adopting an international outlook and looking outward that encourages foreign investments.

This is how it has happened initiate talks with Chile over what would be the country’s first bilateral free trade agreement (FTA), to compliment the agreements it has in place via its membership of the Southern Common Market(Mercosur), an economic alliance that includes other Southern Cone countries of Argentina, Brazil and Uruguay.

The country was also represented. adopt new transfer pricing norms in keeping with standards established by the Organisation for Economic Co-operation and Development (OECD) — an international trade organization known as the “good practice club” that Paraguay is seeking to join as a full member.

4. Paraguayans can get a more simplified residence
Paraguay’s government has implemented several measures to attract more investors to the country, including a simplified residency process.

Benigno Lopez, the then-Finance Minister announced in December 2020 that measures would be taken to reduce the amount of time it takes to obtain residency by investing. Currently the process can take between two and three years.

This is despite Paraguay having one of the best residency systems for investors in the area.

5. Doing business is easy
Paraguay, a country pro-business that encourages FDI and has a system that allows investors to easily invest, is a great example of this.

This includes any history of sudden changes or confiscations in investment rules. robust set of employment lawsInvestors have a lot of confidence in the integrity and protectionof intellectual property.

SEE ALSO Paraguay Trademark Office Database: Get a Free Search

Außerdem rühmt das Land a company formation process with minimal red tapeIt is a strong industrial base that can be used to get into the manufacturing industry, as well as a developing innovation sector.

Biz Latin Hub will help you to do business in Paraguay

Biz Latin Hub has a bilingual team of support specialists available for you to aid you in Paraguay when you make an investment.

We offer a wide range of back-office services, including company formation, accounting & taxation, corporate legal services, visa processing, and hiring & PEOWe offer tailored support packages to meet every client’s needs.

Our teams are present in 16 Latin American and Caribbean markets, with trusted partners who take our coverage all over the region. This means that we can help you in any part of the region and particularly in multi-jurisdictional market entry and operation.

Contact us todayFor more information on how we can help you do business in Paraguay, click here

Find out more information about our team and expert authors.

Key services offered by BLH including legal services, accounting & taxation, hiring & PEO, due diligence, tax advisory, and visa processing
Biz Latin Hub offers key services

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