Paraguay is quietly working its way toward the OECD, the club of mostly high-income, high-governance economies. In June 2025 it signed a three-year Country Programme with the organisation in Paris, and in early 2026 the government formally declared OECD accession a national interest. For anyone weighing Paraguay as a base, this is a stability signal worth understanding, and it comes with one important caveat about the 0% tax.
What Paraguay Actually Agreed With the OECD
The centrepiece is the Programa País (Country Programme), a structured three-year cooperation deal signed in Paris around the OECD Ministerial Council Meeting in June 2025. Economy Minister Carlos Fernández Valdovinos represented Paraguay, and OECD Secretary-General Mathias Cormann led on the organisation's side.
The programme is built around five pillars: economic growth, social policy, governance and integrity, the environment, and trade and investment. In practice it is a roadmap of reviews and reforms that align Paraguayan institutions with OECD standards, not membership itself. A Country Programme is a step on the path, not the destination.
The Accession Timeline So Far
Paraguay first signalled interest in 2023. The sequence since then has been steady rather than sudden: a formal expression of interest in November 2023, an invitation from the OECD Council in July 2024, the Country Programme signed in June 2025, and a national decree declaring OECD accession a matter of national interest on 14 January 2026.
Momentum continued into 2026 with an investment-focused mission in Asunción on 19 to 21 May. Paraguay is not alone in the region: Argentina and Brazil are also working through their own OECD processes, part of a wider Latin American push toward the organisation's standards.
Why the Economics Back the Bid
The OECD ambition rests on genuinely strong numbers. Paraguay's economy grew by roughly 6.6% in 2025, among the fastest in South America, and the country now holds investment-grade credit ratings, Baa3 from Moody's and BBB- from S&P.
Public finances have tightened too, with the fiscal deficit falling from about 4.1% toward 2.0% of GDP and public debt sitting near 41% of GDP, low by regional standards. Treat each figure as approximate and check a current source, but the direction of travel is clear and it is what makes the OECD conversation credible rather than aspirational.
What OECD Accession Means for the 0% Territorial Tax
Here is the part that matters most to our readers, and it needs to be said plainly. OECD membership does not automatically change Paraguay's territorial tax system. The 0% on genuinely foreign-source income flows from domestic law, Ley 6380/2019, and joining the OECD does not repeal or override it.
Accession is also a multi-year process. Even for a committed candidate it typically runs for years of reviews across dozens of policy areas, so nothing here changes overnight. The near-term effect is institutional credibility, not a new tax bill.
What you should expect over time is more transparency, not a higher rate. The direction of travel is alignment with international information-exchange norms, the same logic behind CRS and Paraguay's own crypto-reporting rule, DNIT General Resolution 47/2026. A legitimate, substance-backed residency is the position that ages well as Paraguay integrates further, which is exactly the approach we already recommend.
Thinking about Paraguay as a stable base? A short intro call maps how residency, the 0% territorial rules, and your own country's exit rules fit your situation. Book a call.
Frequently Asked Questions About Paraguay and the OECD
Is Paraguay a member of the OECD?
Not yet. As of 2026 Paraguay is on an accession track: it signed a three-year OECD Country Programme in June 2025 and declared accession a national interest in January 2026. Full membership, if it happens, is a multi-year process of reviews and reforms, not a done deal.
Does OECD accession change Paraguay's 0% tax?
No, not automatically. The 0% on foreign-source income comes from domestic law (Ley 6380/2019), which OECD membership does not repeal. Over time, expect more transparency and information-exchange alignment (the CRS and crypto-reporting direction) rather than a change to the headline territorial rate.
When will Paraguay join the OECD?
There is no fixed date. Accession processes commonly take several years of country reviews across many policy areas. Paraguay's Country Programme (2025 to 2028) is a preparatory phase, and formal accession negotiations, if opened, would run beyond it. Treat any specific timeline as speculative.
Why is Paraguay pursuing OECD membership?
To lock in credibility. Strong growth (about 6.6% in 2025), investment-grade ratings, and improving public finances give Paraguay a case, and OECD alignment signals institutional stability to investors and partners. Argentina and Brazil are pursuing similar paths in the region.
Disclaimer: This article is general information, not legal, tax, or investment advice. Accession timelines and economic figures change, and tax treatment depends on your situation. Confirm current details with official sources and a qualified adviser before you act.
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About the author
Yannick Schroth
Founder · Paraguay relocation advisor
Lives in Asunción and guides international nomads, entrepreneurs and investors toward residency, a cédula and a tax-efficient structure in Paraguay.
