Opening a company in Paraguay: locals, foreigners, freelancers and digital nomads

At a glance: simplified company (E.A.S.) with no minimum capital opened online through SUACE in about a week, 10 percent corporate tax on Paraguayan-source income only, 10 percent IVA from the first sale, RESIMPLE flat regime for micro businesses, Digital Nomad Visa for one year. Legal forms. Sole trader (empresa unipersonal). Simplified company (Empresa por Acciones Simplificada, E.A.S.): one or more shareholders, no minimum capital, electronic bylaws, no notary. Limited company (Sociedad de Responsabilidad Limitada, S.R.L.): 2 to 25 partners, no minimum but half the capital paid in, notarial deed. Public company (Sociedad Anónima, S.A.): no statutory minimum, nominative shares. Special regimes: maquila (1 percent tax on value added for export assembly) and free-zone users (0.5 percent on gross income). Registration. The one-stop shop SUACE (Sistema Unificado de Apertura y Cierre de Empresas) bundles the commercial registry entries, the tax number (RUC) from the DNIT, social security (IPS) and the municipal licence. An E.A.S. is filed online in three to ten working days, state fees about PYG 500,000 to 1,000,000 (about 60 to 120 euros). An S.A. or S.R.L. needs a public deed before an escribano, four to eight weeks, about 700 to 2,000 euros. Total excluding capital roughly 300 to 1,000 euros for an E.A.S. and 1,500 to 4,000 euros for an S.A. Taxes 2026. Corporate income tax (IRE) 10 percent on Paraguayan-source income only. Dividend tax (IDU) 8 percent for resident individuals and 15 percent for non-residents. IVA 10 percent (5 reduced), no registration threshold. Personal income tax (IRP) 8, 9 and 10 percent on income from about 80 monthly minimum wages a year (roughly 27,000 euros). IRE SIMPLE for turnover up to PYG 2,000 million (about 230,000 euros) taxes 10 percent of the lower of real or presumed net profit; RESIMPLE for turnover up to PYG 80 million (about 9,000 euros) is a fixed PYG 20,000 to 60,000 a month. Social security (IPS) 16.5 percent employer, 9 percent employee. Freelancers and the self-employed. A freelancer registers a RUC with the DNIT online (Marangatu), charges 10 percent IVA on fees, files IRP only above the 80 minimum-wage threshold and issues electronic invoices through e-Kuatia. No mandatory social security for independents; voluntary IPS membership costs about 12.5 percent of a declared base from one minimum wage (PYG 2,899,048, about 330 euros). RESIMPLE covers micro trading and small industry, not personal services. Foreigners. 100 percent foreign ownership; the only sector limits are rural land within 50 kilometres of the borders and some media concessions. The legal representative of any company must hold a Paraguayan identity card (cédula), so a foreign founder either obtains residence first or appoints a resident representative. Temporary residence under the 2022 Migration Law runs two years, applied for in person at the Dirección Nacional de Migraciones in about two to three months, official fees around 150 euros; permanent residence follows after two years, or directly through SUACE for investors with a plan of at least 70,000 dollars. Banks rarely open accounts for non-residents. Branch of a foreign company. A branch (sucursal) registers at the Registro Público de Comercio with the apostilled parent charter and a board resolution appointing a legal representative resident in Paraguay; six to ten weeks. Taxed at 10 percent IRE on Paraguayan-source profits, with 15 percent IDU on remittances. Representative offices have no separate regime. A local S.A. or E.A.S. subsidiary is the usual choice. Digital nomads. Yes: the Digital Nomad Visa (Visa de Nómada Digital), created by decree in 2023 and issued by the Dirección Nacional de Migraciones, for remote employees and freelancers paid from abroad; proof of foreign income without a published minimum, clean record, health insurance; one year, renewable once; fee about 100 to 200 dollars; dependants on separate applications. Tourists get 90 days. Income from foreign clients is foreign-source and outside Paraguayan tax, so nomads generally owe no local tax. Changed recently. Tax authority SET merged into the DNIT (Law 7,143, 2023); e-invoicing through SIFEN made mandatory in phases through 2025 and 2026; Digital Nomad Visa (2023); new migration regulation under Law 6,984 with SUACE handling investor residence (2023); minimum wage PYG 2,899,048 (July 2025); investment-grade rating by Moody's (July 2024). Figures checked October 2026 from the DNIT, SUACE, the Dirección Nacional de Migraciones and PwC and local law-firm summaries; thresholds and fees change yearly. Confirm with a licensed adviser in Paraguay before you file.