Paraguay: how to legally pay 0% tax on foreign income
Paraguay is one of the few options for founders and investors offering 0% tax on income earned abroad. How it works and who it's for.
Max Levoshin
1 min read
What do beaches and taxes have in common?
That's right, Paraguay. It has neither. At least not if you earn your money abroad.
For entrepreneurs, founders, investors and freelancers, it's one of the few places where you can legally pay 0% on income earned outside the country.
No offshores, no gray areas, no risk with international tax authorities.
The main perks of Paraguayan tax residency
Here's what matters:
— Tax residency is set up in 1–2 weeks
— No requirement to actually live there
— A personal bank account opens without excessive bureaucracy
— 0% on foreign income. Domestically, the rates are reasonable too: 10% corporate tax, 10% VAT
— No automatic exchange of tax data (CRS)
Why Paraguay is a smart choice
Simpler than a US C-Corp, and more resilient at scale than a Georgian sole proprietorship. What more could you ask of a country?
DM me for help setting it up.