Foreign Investor Rights in Paraguay: 2026 Complete List
Written by Alejandro Romeral
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July 15, 2026
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9 min read
Written by
Alejandro Romeral del Olmo
Founder of Move to Paraguay
Founder of Move to Paraguay and co-founder of Ethelred Capital. Alejandro relocated to Paraguay himself and now helps expats, remote workers, and investors with residency, company setup, taxation, and housing — advice grounded in first-hand experience living and doing business in Asunción.
Paraguay's foreign investment framework is defined by constitutional guarantees and specific statutes that give non-resident investors the same legal standing as Paraguayan nationals. Law 117/91 and Law 60/90 form the backbone of the foreign investor rights Paraguay list, covering equal treatment, full capital repatriation, and tax incentives. The Investor Pass, launched in April 2026 under Resolution 0283/2026, adds a fast-track residency option for investors committing as little as US$70,000. Understanding these rights before you invest is not optional — it is the difference between a protected position and an avoidable loss.
1. Equal Treatment Under Law 117/91
Law 117/91 guarantees foreign investors the same legal treatment as domestic investors. No sector is reserved exclusively for Paraguayan nationals, and no discriminatory licensing or pricing applies to foreign capital. This is the foundational legal protection for any investor entering the Paraguayan market.
Paraguay's Constitution reinforces this through Article 107, which prohibits monopolies and mandates open market access. The practical effect is that you can compete, contract, and operate on equal footing with local businesses from day one.
Foreign investors receive equal access to courts, contracts, and regulatory processes
No special permits are required solely because of foreign nationality
Domestic and foreign capital receive identical treatment under tax and commercial law
Pro Tip:Use Law 117/91's equal treatment guarantee explicitly in joint venture agreements with local partners. Citing the statute in your contract language signals legal awareness and discourages informal attempts to impose unequal terms.
2. Full Repatriation of Capital and Profits
Investor reviewing joint venture contract
Full repatriation of capital and dividends is permitted under Law 60/90 with no government approval required. You can move your original investment and all profits out of Paraguay at any time, in any currency. This removes one of the most common deterrents to emerging-market investment.
Law 60/90 also covers import duty relief on capital goods and raw materials for qualifying investors. That combination of repatriation freedom and duty relief makes Paraguay's financial environment genuinely open by regional standards.
3. Business Ownership Without Residency
Foreigners can incorporate a Paraguayan company with 100% ownership and no residency requirement. The most accessible structure is the Empresa Anónima Simplificada (EAS), which allows a single foreign shareholder and carries no minimum capital requirement. You can register the company from abroad using a local legal representative.
The key limitation is operational. Without residency, you cannot personally sign contracts as the company's legal representative, open a corporate bank account in your name, or manage day-to-day compliance directly. A local director holding a Paraguayan national ID (Cédula) must fill that role until you obtain residency.
The three main corporate structures available to foreign investors are:
EAS (Empresa Anónima Simplificada): Single shareholder allowed, no minimum capital, fastest to incorporate, ideal for solo investors and small operations
SA (Sociedad Anónima): Requires at least two shareholders, suited for larger ventures or those planning to raise capital
SRL (Sociedad de Responsabilidad Limitada): Partnership-style structure with limited liability, common for small to mid-size joint ventures
Pro Tip:Plan your transition from a nominee local director to yourself as resident director from the start. Build the timeline into your incorporation documents so the handover is clean and does not require a full restructure later.
4. Tax Incentives and Free Economic Zones
Paraguay's Free Economic Zones operate under Ley 523/95 and replace all national, departmental, and municipal taxes with a single 0.5% tax on gross revenue. Six Free Economic Zones are currently operational across the country. That rate is among the lowest export-oriented tax regimes in Latin America.
FEZ concessions run for 30 years and are renewable. Investors operating inside a Free Economic Zone also benefit from Law 60/90's import duty exemptions on machinery, equipment, and raw materials used in production. The result is a stacked incentive structure that significantly reduces the cost of export-oriented operations.
Incentive
Legal Basis
Benefit
Single tax on FEZ revenue
Ley 523/95
0.5% replaces all local and national taxes
Capital and profit repatriation
Law 60/90
No restrictions, no approval required
Import duty relief
Law 60/90
Exemption on capital goods and inputs
Equal investor treatment
Law 117/91
Same rights as Paraguayan nationals
FEZ concession term
Ley 523/95
30-year renewable operating license
Combining FEZ status with residency maximizes both tax and operational advantages. A resident investor can personally manage the FEZ entity, access corporate banking, and sign contracts directly, removing the cost and complexity of nominee director arrangements. Paraguay's broader territorial tax system amplifies this advantage: foreign-source income earned outside Paraguay faces zero local income tax.
5. The Investor Pass: Residency Rights for Foreign Investors
The Investor Pass launched on April 17, 2026 under Resolution 0283/2026. It grants permanent residency to foreign investors who commit between US$70,000 and US$200,000 in qualifying Paraguayan assets or businesses. Approval typically takes 10–15 working days, making it one of the fastest residency-by-investment programs in the region.
Rights granted under the Investor Pass include:
Permanent residency status from the date of approval, with no temporary phase required
Cédula issuance, giving you the national ID needed for banking, contracts, and government services
Work authorization to operate your business directly without a separate work permit
Full banking access to open personal and corporate accounts in your name
Ability to live in Paraguay year-round with no minimum stay requirement to maintain status
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The Investor Pass is distinct from the standard temporary residency pathway, which typically takes 3–6 months and requires a separate application for permanent status. The Investor Pass skips that intermediate stage entirely.
Pro Tip:Structure your qualifying investment to serve a dual purpose. A business investment that also qualifies for FEZ status or Law 60/90 incentives gives you residency rights and tax advantages from a single capital commitment.
6. Shareholder Requirements and Real Estate Restrictions
The legal representative (Director) must hold a valid Paraguayan Cédula. Foreign nationals without residency cannot serve in this role.
Nominee director services are widely available and legally permitted as an initial solution, but they carry cost and control implications you should factor into your budget.
The EAS structure has no minimum capital requirement. The SA and SRL structures do not have a statutory minimum either, but banks and commercial partners typically expect a capitalization that reflects the scale of the business.
Shares in an EAS and SA are freely transferable, giving you flexibility to bring in partners or exit without restructuring the entity.
The real estate restriction is the most frequently overlooked rule in Paraguay's foreign investment framework. Ley 2532/2005 prohibits non-resident foreigners from owning real estate within 50 km of Paraguay's national borders. This is a hard legal limit, not a zoning guideline. Violating it can result in the transaction being voided.
The practical implication is significant. Large portions of the Chaco region and border areas adjacent to Brazil, Argentina, and Bolivia fall within the restricted zone. Before purchasing any property, verify the exact coordinates against the border-zone map. Obtaining residency removes this restriction entirely, which is another reason the Investor Pass is worth considering early in your planning.
Key Takeaways
Paraguay's legal protections for foreign investors are codified in Law 117/91, Law 60/90, and the Constitution, giving non-residents equal rights, full repatriation freedom, and access to tax incentives that domestic investors also use.
Point
Details
Equal treatment is statutory
Law 117/91 guarantees foreign investors the same rights as Paraguayan nationals in all sectors.
Repatriation is unrestricted
Law 60/90 allows full removal of capital and profits with no government approval required.
Residency is not required to incorporate
You can own 100% of a Paraguayan EAS company without residency, but a local Cédula-holding director is mandatory.
The Investor Pass is the fastest residency route
Committing US$70,000–200,000 qualifies you for permanent residency in 10–15 working days under Resolution 0283/2026.
The 50 km border zone is a hard restriction
Non-resident foreigners cannot own real estate within 50 km of Paraguay's borders under Ley 2532/2005.
FAQ
What rights do foreign investors have in Paraguay?
Foreign investors in Paraguay have the same legal rights as domestic investors under Law 117/91, including equal market access, full capital and profit repatriation under Law 60/90, and the right to own 100% of a Paraguayan company.
Is residency required to invest in Paraguay?
Residency is not required to incorporate a company or own property in Paraguay, but it is required to serve as the company's legal representative, open bank accounts personally, and own real estate in border-restricted zones.
What is the Investor Pass in Paraguay?
The Investor Pass is a residency-by-investment program launched in April 2026 under Resolution 0283/2026 that grants permanent residency to foreign investors committing US$70,000–200,000, with approval in 10–15 working days.
What is the 50 km border zone restriction?
Ley 2532/2005 prohibits non-resident foreigners from owning real estate within 50 km of Paraguay's national borders. Obtaining Paraguayan residency removes this restriction entirely.
What tax benefits are available to foreign investors in Paraguay?
Foreign investors operating inside a Free Economic Zone pay a single 0.5% tax on gross revenue under Ley 523/95, replacing all other national and local taxes. Law 60/90 also provides import duty exemptions on capital goods and raw materials.
Written by Alejandro Romeral
