7 reasons to invest in Paraguay
Active or passive investor, wanting to change their life or to leave, Paraguay offers many opportunities to expatriates.
Paraguay enjoys the highest monetary and financial stability in Latin America. There has never been a sudden devaluation, expropriation or freezing of economies.
It is one of the highest growths in the world.
At the Davos Economic Forum, Latin America emerged as the most stable economic zone on the planet, despite the political uncertainty of Venezuela, Argentina and Brazil. Latin America, in addition to its recognized stability, is considered the best investment area, apart from the Bolivarian countries. Paraguay’s predictable economic and political situation is also a major asset for investing.
Paraguayan law offers the same treatment to foreign investors as to local investors.
Paraguay has signed investment guarantee agreements with various countries.
The Pacific Alliance
Paraguay has integrated as an observer member the Pacific Alliance, a US $ 2 trillion economic bloc, and is expected to quickly become a full member, after the signing of free trade agreements with Mexico, one of the conditions to become a full member of the Pacific Alliance, the three other founding states having already ratified this agreement.
The founding member states of the Pacific Alliance are Peru, Chile, Mexico and Colombia. Observer states are Paraguay, Costa Rica, Panama, Uruguay, Canada, Japan, Guatemala, Spain, Australia and New Zealand.
The goal is to eliminate all customs barriers. This measure has already affected 90% of products since March. The presidents also agreed to start negotiations to create a supranational system of arbitration in the event of disputes, which would give more legal guarantees to companies wishing to invest in one of the countries of the Alliance.
These economies have many things in common:
- a liberal economic policy
- an open trade
- an attractive policy for investors
- a sustained growth rate
- controlled inflation
- significant reception of FDI
- infrastructure investment programs
- the emergence of a large middle class, which consumes
The grouped economies of the four member countries of the Pacific Alliance represent 215 million inhabitants and a cumulative GDP of 2,000 billion USD (35% of Latin American GDP), more than Russia, India or the United States. Spain. The amount of their exports represents more than 50% of the total Latin American exports.
Growth and development
The strong increase in world demand for food products for the coming years, Europe and the United States no longer being able to fully meet their domestic demands, as well as other regions of smaller sizes, but rapidly developing, come to strengthen the economic interest of production from cattle breeding and food processing in Paraguay.
Paraguay is experiencing the strongest and most rapid expansion in Latin America.
Lower tax rates and a quite simple tax system. Paraguay is almost tax exempt.
- Very little income tax
- No tax on capital gains and inheritance
- Corporate tax limited to 10%
- VAT varying from 0 to 10% maximum
Strong national economic figures have allowed the adoption of countercyclical fiscal and monetary measures. The central bank of Paraguay enjoys autonomy and has been able, thanks to a system of floating exchange rates, to build up significant foreign currency reserves. With these measures, Paraguay was able to take advantage of favorable international developments.