How wealth tax works in Paraguay
Paraguay does not have a broad net wealth tax. Bank balances, listed portfolios, private company shares, crypto holdings and foreign assets are not subject to an annual wealth levy simply because they exist.
The main caveat is that Paraguay still taxes ownership and transactions in other ways. Real estate tax is charged annually at 1% of fiscal value in the normal case, and property sales can also fall under VAT rules at 5% or 10% depending on the asset and transaction.
There is no stamp tax in Paraguay, but banks and counterparties can still request source-of-funds records, especially where assets are being transferred, sold or inherited.
Tax rates at a glance
- Net wealth tax
- 0%Zero
- Net worth tax
- 0%
- Annual asset tax
- 0%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsHigh earnersFamily officesRemote foundersCrypto holders
Watch out for
- No wealth tax does not mean no property tax. Real estate tax and VAT on property sales can still be material.
- Paraguay's treaty network is limited, so foreign jurisdictions can still tax assets or income even if Paraguay does not.
- If you are planning an exit or transfer, document ownership and acquisition cost early so banks and advisors can trace the asset history cleanly.
Frequently asked questions
Does Paraguay have a wealth tax?
No. Paraguay does not levy a broad net wealth tax or annual tax on personal net worth.
Are foreign assets taxed in Paraguay?
Not under a standalone wealth tax. Foreign assets can still matter for income tax, foreign reporting and the rules of the country where you are also tax resident.
Is Paraguay good for investors?
It can be, because there is no net wealth tax and the income tax system is territorial. Investors should still model real estate tax, VAT and dividend withholding.