We help European companies establish and operate in Paraguay — from legal entity to first invoice in 60 days. 1% export tax. Investment Grade. Full turnkey.
The 2026 Paraguay Entry Guide — key data, Maquila registration steps, and cost model. Free.
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Why Paraguay · Why 2026
The combination of Moody's Investment Grade, the new Maquila digital services law, the world's largest private infrastructure investment, and the EU-Mercosur Agreement creates a window that did not exist in 2024 — and will not be as open in 2028.
European companies can now include Paraguay in standard investment risk models without requiring special board exceptions. The upgrade removed the last institutional barrier for European CFOs.
Software development, SaaS, BPO, and digital services exported to foreign clients now qualify for the 1% Maquila export tax. The guarantee is 20 years, issued as a formal administrative act per company.
The largest private foreign direct investment in Paraguay's history. Anchored by Itaipú's 100% renewable electricity and sub-$0.04/kWh industrial rates. Paraguay is now on the global infrastructure map.
700 million people. €4B/year in EU tariff savings. Investment protection backed by EU institutional enforcement. Signed in Asunción. Provisional application active from February 2026.
What We Do
We handle everything — so your European team focuses on the business decision, not the registration process. All three services are delivered by a single point of contact in Asunción.
Country Comparison
The five factors that matter most when a European company evaluates a Latin American operating base.
| Factor | Paraguay | Uruguay | Colombia | Brazil | Argentina |
|---|---|---|---|---|---|
| Corporate tax | 10% | 25% | 35% | 34% | 35% |
| Export tax (special regime) | 1% Maquila | 0% zone only | 15% ZEC | None | None |
| Moody's rating | Baa3 IG | Baa2 IG | Baa2 IG | Ba2 | Ca |
| Capital repatriation | Free — no exit tax | Free | Free | Limited | Severe restrictions |
| Company formation | 1 day (EAS, free) | Weeks | Weeks | Months | Weeks |
| Engineer total cost/mo | ~$1,800 | ~$3,500 | ~$2,200 | ~$2,500 | ~$1,200* |
*Argentina's apparent low cost is offset by capital controls, hyperinflation, and operational risk. Net total risk-adjusted cost is the highest in the region.
About PEP
Paraguay Entry Partners exists for one purpose: to give European companies a single, trusted local partner who handles the complete entry process — from first call to first invoice.
We do not serve Chinese investors, US companies, or regional players. We specialize in European companies only. That focus means we know the specific concerns, compliance requirements, and risk models that European boards require — and we know how to address them.
We operate from Asunción, Paraguay. We stay through execution — not just registration. When you have a question on a Tuesday afternoon, you reach a local contact, not a customer service queue.
Single-market focusParaguay only. European companies only. No distraction, no divided attention.
Operational, not just legalWe stay through team hiring, payroll setup, and first reporting cycle.
English throughoutEvery report, call, and document in English. No translation gaps.
Direct REDIEX accessWe have working relationships with Paraguay's investment promotion agency and MIC.
Resources
Free guides covering the four questions every European company asks before entering Paraguay.
How the 1% Maquila regime works for digital services — eligibility, registration, the 20-year guarantee, and why it is structurally different from comparable regimes in LATAM.
A complete data-driven comparison across tax, labor cost, setup speed, and investment risk — with an honest verdict by company type.
Verified salary data, total employer cost breakdown with IPS, available tech stacks, employment contract requirements, and how to recruit effectively in Asunción.
The agreement was signed January 17, 2026. This guide covers what is already in effect, which sectors benefit most, and why Paraguay is the strongest entry point.
Book a free 20-minute call. We will tell you honestly whether Paraguay makes sense for your specific revenue model, team size, and timeline — and what the next step looks like.
Book free 20-min call