How capital gains tax works in Paraguay
Paraguay does not label capital gains as a separate standalone tax in the way some countries do. For individuals, gains and capital income are taxed under IRP at 8%, while corporate gains are included in ordinary business profits and taxed under IRE at 10%.
Gains on shares, securities, business interests, property and other capital assets can therefore be taxable even though the tax label is different. For companies, foreign currency exchange gains are also taxed at the ordinary 10% income-tax rate.
Real estate sales need extra care because some immovable-property transactions can also be subject to 5% VAT, so the total transfer cost is not just the capital-gains layer.
Tax rates at a glance
- Capital gains tax
- 8%Individual rate
- Corporate capital gains
- 10%
- Share gains
- 8%
- Property gains
- 8%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsShareholdersProperty ownersTradersHigh earners
Watch out for
- Paraguay taxes gains by source and category, so the first question is usually whether the gain is treated as Paraguayan-source IRP or IRE income.
- Real estate disposals may attract VAT, so a property sale can have more than one tax layer.
- Keep acquisition records and cost basis documentation clean because DNIT and banks will expect support for the gain calculation.
Frequently asked questions
Does Paraguay have capital gains tax?
Paraguay does not have a separate standalone capital gains tax, but capital gains are taxed under IRP for individuals and under IRE for companies.
Are stock market gains taxed in Paraguay?
Yes, if they fall within Paraguay's source rules. For individuals, gains are generally taxed at 8%.
Is there a separate crypto gains tax in Paraguay?
Not in the main tax summaries I reviewed. Crypto gains usually need to be analysed under the general capital-income and source rules rather than a special crypto tax regime.