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Regardless of whether you’d like to live in Paraguay long term, or if you are only looking for a residence that looks good on paper, the tax system of Paraguay is a great incentive to opt for this country.
Just like in Panama, we find in Paraguay a territorial taxation which stipulates that only the income obtained within the country is taxed. All income from abroad is tax-free, which is why it’s ideal for entrepreneurs and investors who aren’t bound to any place to have a residence there.
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One of the main reasons to have a residence in Paraguay is, without a doubt, its condition as a member of the MERCOSUR association.
Broadly and briefly speaking, the “Common Market of the South” is sort of a South American UE, with the difference being that it only reunites its advantages. MERCOSUR’s space is on its way to transform into an internal common market that reciprocally grants the residents of the different countries that are members free entrance and facilities to get a residence.
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In Paraguay there are many interesting investing opportunities and others that must be treated carefully. Without a doubt, you should think twice before investing in tropical rainforest reforestation or certain real estate projects. Nonetheless, there’s a real possibility of obtaining high return of investment is with a manageable risk are cooperative local banks.
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