Company Formation in Paraguay: SRL, SA, EAS & Costs 2026
Company formation in Paraguay explained: SRL, SA and the one-person EAS, the SUACE process, real costs in USD, and when a US LLC beats a local company.
17 min readParaguay for online entrepreneurs
If you run an online business, you will want to know about residency, the cédula, the tax on work done in Paraguay and whether you need a company there. This hub collects the guides on each.
Paraguay taxes on the territorial principle: Paraguayan-source income is taxed under the IRP (8 to 10%) or, through a Paraguayan company, the IRE (10%), while income that genuinely arises abroad is untaxed in principle for a Paraguay tax resident. Many founders invoice through a US LLC, which is cheap to run but does not change where income is sourced. One limit matters for founders who work from a laptop in Asunción: work physically performed from Paraguay can count as Paraguayan-source income, whichever entity invoices it.
Compared with Dubai or Malta, Paraguay is far cheaper to live in and does not demand a large minimum investment or heavy presence just to hold your residency. For founders who want optionality, it also opens a path to Paraguayan citizenship in around five years.
Founders who build a real operation here also get a shortcut to permanent residency. Through the productive category of the Paraguay Investor Pass, $70,000 in capital assets, a business plan approved in advance and at least five formal jobs replace the two-year temporary phase. The company can be new or an existing one you buy into, and payroll comes on top of the investment.
If you are a US person, remember that the US taxes worldwide income regardless of residency, and self-employment tax can still apply. Paraguay does not change that. Plan with a US-qualified advisor and read the US-citizens guide first.
Key guides for entrepreneurs
Structure, tax residency and how Paraguay compares to the alternatives.
Paraguay Investor Pass With a Company: The $70,000 Route
The Investor Pass productive category: what counts toward $70,000, what the business plan needs and what five formal jobs cost a year. Do the math first.
14 min read
Paraguay Residency for Visa-Required Countries 2026
If your passport needs a visa for Paraguay, residency has an extra hurdle. How the process works for visa-required nationalities, and how we handle it.
9 min read
Paraguay Tax System 2026: Territorial Tax, IRP, IRE, IVA
The Paraguay tax system runs on the territorial principle: IRP, IRE, IVA and the RUC explained, plus what actually applies to foreign residents in 2026.
17 min read
Paraguay Tax Residency: How the Territorial System Works (2026)
Paraguay tax residency explained: how territorial taxation treats foreign income, where the RUC fits, and where people get it wrong.
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Bank Account in Paraguay: Requirements After Your Cédula
Opening a bank account in Paraguay after your cédula: the requirements, main banks, guaraní vs USD accounts, fees, and how it pairs with Wise.
12 min read
Paraguay vs Dubai, Panama & Georgia: Residency Compared (2026)
Paraguay vs Dubai vs Panama vs Georgia: tax rules, cost of living, residency time, citizenship, and investment compared, with an honest verdict for 2026.
15 min read
Founders in Asunción, Part 1: Sam Goetz of Fluido Spanish
Sam Goetz came to Asunción as a digital nomad and founded the Fluido Spanish school. Founders in Asunción, part 1: his start, his mistakes, his advice.
18 min readRecommended package
Premium package $2,400
For founders who want the residency handled in a single trip: every appointment bundled, sworn translations and government fees included, plus the RUC inscription that a company or invoicing setup depends on. Support through to permanent residency and a Paraguayan company are add-ons, priced separately.
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Frequently asked questions
Should I form a Paraguayan company or a US LLC?
Many founders with foreign customers use a US LLC and keep the Paraguay side to personal residency; a Paraguayan company fits local customers or local substance. The entity alone does not decide the tax result, because work performed from Paraguay can count as Paraguayan-source income. Which setup fits your business is something our Paraguayan accountant assesses with you.
Is Paraguay better than Dubai for entrepreneurs?
It depends on your priorities. Dubai has zero personal tax and prestige but a high cost of living and a 9% corporate tax. Paraguay is far cheaper, has no minimum investment and offers a passport path. See the full comparison guide.
How long until I have Paraguayan residency?
Plan on 5 to 7 months to the cédula on two trips, or 3 to 4 months on the one-trip Premium package, which includes the cédula fast-track. The RUC follows the cédula. Tax questions about your business go to a Paraguayan accountant, and questions about leaving your home country to a qualified adviser there.
Does Paraguay residency help US founders?
US citizens and green-card holders stay on the hook for worldwide income and often self-employment tax. Paraguay still helps with cost of living and a second residency, but it is not a US tax exit. Read the US-citizens guide.
Can an entrepreneur get permanent residency in Paraguay directly?
Yes, through the productive category of the Investor Pass: at least $70,000 in capital assets, a business plan approved in advance and at least five formal jobs. Forming a company is optional, since a stake in an existing business also counts. Five jobs at the minimum wage cost roughly $38,800 a year including social security and the thirteenth salary, so the route fits founders who need the staff anyway.
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