Landlocked Paraguay has a market economy distinguished by a large informal sector, featuring re-export of imported consumer goods to neighboring countries, as well as the activities of thousands of microenterprises and urban street vendors. A large percentage of the population, especially in rural areas, derives its living from agricultural activity, often on a subsistence basis. Because of the importance of the informal sector, accurate economic measures are difficult to obtain. 

The Paraguayan economy is small and open, with an average growth rate of 5% over the past decade, despite the volatility of that period.

Paraguay has a small but rapidly growing open economy with a strong macroeconomic position and the potential for continued growth over the next decade. Major drivers of economic growth in Paraguay are the agriculture, retail, and construction sectors. The Government of Paraguay encourages private foreign investment. Paraguayan law grants investors tax breaks, permits full repatriation of capital and profits, supports assembly plant operations, and guarantees national treatment for foreign investors.

This site provides an index of key business statistics

Comprehensive report on all aspects of doing business in Paraguay from the World bank

This site provides a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Paraguay.

For income from commercial, industrial, and service activities, the general income tax rate of 10% applies.

The general personal income tax (PIT) rate is 10% for individuals with residence in Paraguay who obtain an annual income equal to or higher than 120 monthly minimum salaries. The salary to be used is that which is in force on 1 January of every year.

The Sales Tax Rate in Paraguay stands at 10 percent.

The Corporate Tax Rate in Paraguay stands at 10 percent. Corporate Tax Rate in Paraguay averaged 18.95 percent from 1997 until 2015, reaching an all time high of 30 percent in 1998 and a record low of 10 percent in 2006. Corporate Tax Rate in Paraguay is reported by the Dirección General de Administración y Finanzas.

See “Entry, Exit & Visa Requirements

A foreign national wishing to enter Paraguay must obtain a visa unless he or she is a citizen of one of the eligible visa exempt countries.

Transportation in Paraguay is very different to what most people are used to back at home. In some regions it is adequate and passable, whereas in other it could be called incredibly poor. 

The state-owned incumbent, Corporación Paraguaya de Comunicaciones (Copaco), retains a monopoly on all fixed-line voice services, including local telephony, international long distance telephony, and VoIP. In the mobile market, however, there has been competition since 1998. The internet market is also open to competition, and there are over a dozen ISPs offering services. Copaco lost its monopoly over the international backbone for internet connectivity in early 2009. – See more at: http://www.budde.com.au/Research/Paraguay-Telecoms-Mobile-and-Broadband-Market-Insights-and-Statistics.html?r=51#sthash.N2xuHJPT.dpuf

A summary of all forms of public transportation in Paraguay

Telecommunications in Paraguay are meager. Paraguay has the lowest fixed-line telephone density in South America, with 5.6 lines per 100 residents, compared with 8.7 per 100 in Bolivia, 21.9 in Brazil, and 24.9 in Argentina.

This site provides a detailed summary of some of the labor regulations that would apply to local entrepreneurs wishing to hire workers, organize working schedules, or make workers redundant for economic reasons in Paraguay. 

See Section on “Labor”

Subtropical with rapid changes in temperature throughout the year. Summer (December to March) can be very hot. Winter (June to September) is mild with few cold days. Rainfall is heaviest from December to March.

A considerable part of the annual budget is dedicated to improve the education system in Paraguay. The development of several public secondary schools and universities in the country has enhanced the educational system in Paraguay to a large extent. 

Education has not always received the recognition it deserves in Paraguay. These days this is changing as political stability returns, although the poorer children in more rural areas still are not reached by the same opportunities, especially in terms of hours per day at school

National and seasonal holidays in Paraguay

Go to “Safety and Security” on this US Department of State site

Safe travel advice from the UK government

The environment ranges from the arid desolation of the north, to sticky subtropical rain forests and wetland ecosystems. Because Paraguay is in the southern hemisphere, the country’s winter aligns with the North American summer and vice versa.

Public and religious holidays

Demographic information includes population, quality of life, health, sports, technology, energy and the environment

A detailed demographic profile of Paraguay

Cost of living information includes price indices for rent, food, utilities, transportation, restaurants, clothing and more

Aof living costs in paraguay versus other countries in South America

The dos and don’ts of business etiquette in Paraguay

Communication, dining and dress etiquette

This site provides key information on Paraguay’s participation in the WTO. Paraguay has been a WTO member since 1 January 1995 and  a member of GATT since 6 January 1994.

Import tariffs, documentation procedures and restrictions

Paraguay Customs regulations and procedures for importing and exporting goods at Paraguayan border.

Information on trade agreements in force by country

Hotel and other options in cities in Paraguay

Listings of hotels, apartments, rooms and beach houses

Little-visited, little-known Paraguay is a country much misunderstood. Despite its location at the heart of the continent, it is all too often passed over by travelers who wrongly assume that a lack of ‘mega-attractions’ means there’s nothing to see. But it’s ideal for those keen to get off the gringo trail for a truly authentic South American experience.

Expert Paraguay travel guide including detailed information about everything you need to know about Paraguay.