We of Living in Paraguay were pleasantly surprised for the unprecedented success of our webinar of 20 February 2019 and we thank you very much for your great participation. The figures indicate 464 users who attended our webinar from 5 p.m. to 6 p.m. and over 653 questions that we will answer later, because online our Managing Director could answer only a few of them.
This success confirms the work we are already carrying out with plenty of customers coming from other European and North American countries and lets us know that also in Italy there is an increasing interest for Paraguay, this little but exceptional South American country, still little known by Italians.
As a matter of fact, we believe that the success of our webinar comes just from the curiosity and interest that Paraguay has been able to raise in the listeners, who maybe had already visited our website www.livinginparaguay.com
This article just wants to be a resume of the main topics, that we will later develop in detail.
Therefore, a brief handbook, that clearly shows what Paraguay can offer today to all of us. All info were provided by Paraguayan Government and so they are absolutely official and reliable.
Paraguay: a large land, twice the size of Italy and with only 7 millions inhabitants. Paraguay is among the top 5 South American countries for doing business and it has a return of investment equal to 22%, a really staggering figure.
Paraguay is very active in the production of food (especially beef and soy…) and it is the first country for the export of electricity. In fact, Itaipú is the biggest power station in the world, together with Brazil, but in the Paraguayan land.
Moreover, Paraguay is the first country for the production of renewable energy.
Another very important factor is the young age of Paraguayan population: the 60% is under 35 years old.
Economically, Paraguay can be considered a fully-fledged stable, solvent and reliable country, thanks to its strong monetary stability. As a matter of fact, the Guaraní, the official currency of Paraguay is the most stable currency in South America and it has never been changed from the Independence of Paraguay.
Furthermore, Paraguay is the only South American country that never had a currency depreciation and it is in the first places as regards the stability of the little emerging countries.
Paraguay’s GDP is excellent: currently it is equal to 4,5% but in the last years it reached 10% and more.
At the end of 2018 it was equal to 6,8%, at the end of 2017 it was 6,6% and at the end of 2016 it was again 6,8%. The Paraguayan GDP is constantly increasing, while, unfortunately, we know that Europe at present is in a “technical recession”.
And now very interesting and good news four our listener: Paraguay is one of the most competitive country in the field of taxation and its risk rating is stable/high as well as the Italian one.
In the last ten years Paraguay’s inflation was lower than 5%. We remind you that all these data regarding the economy of the country were confirmed by the International Monetary Fund.
A lot of our clients request our assistance for their move to Paraguay. Our clients are not only pensioners, who would also have closer destination available (Tunisia, Portugal, Canaries) but especially young people, who want to launch a start- up or businessmen who want to obtain their residence in Paraguay and move to this country, because Paraguay has a territorial tax system. It means that anyone who obtains his permanent residence, lives at least for 180 days in Paraguay and has his/her business activities out of the Paraguayan land, will pay no taxes on his/her activities.
Moreover, there are many investors, who decided to move physically to Paraguay and reside there for more than 6 months a year and therefore they began to follow the affairs of their companies in Paraguay, without being obliged to do their tax declaration in Italy or Europe.
This absolutely advantageous fiscal situation offered by Paraguay, is still little known by Italians.
You know the usual European tax havens, (Cyprus, Malta, Ireland, Luxemburg) or non- European tax havens (Panama, Belize) but Paraguay still needs to be discovered as regards its excellent tax benefits.
And more: the taxes for anyone who has his/her activity in Paraguay are equal or less than 10%, while for instance in Argentine taxes are equal to 35% and in Brazil to 34%. The VAT rate is equal to 10%, while in Argentine is equal to 23% and in Brazil to 25%.
But Paraguay is not only offering undoubted and very valuable tax benefits: labour cost is much lower than in Brazil, in Argentine or in the average of European countries and anyone who wants to do his/her business in this country must seriously consider these data.
In this regards (and it applies to all: businessmen, pensioners, families etc), we remind you that there are many flights to other south American Countries and especially to neighbouring countries. There is also a daily flight from Madrid.
Another feature of this little and welcoming South American country is the availability to welcome immigrants coming from Europe and North America as well as from neighbouring countries.
Those who move to Paraguay appreciate very much its subtropical climate, mild and warm all year.
Furthermore, there is no danger of earthquakes or hurricanes.
Another great facility offered by Paraguay: if you obtain your permanent residence in Paraguay you only need to use your new paraguayan identity card and with it you can travel to all the countries of South America (you do not need a passport).
Finally, you have to remember that Paraguay is at the top also for its indicators of economic freedom. Paraguay’s Governments are liberal and they do not increase public debt, but on the contrary they promote free enterprise in every way.
At this point our Managing Director began to “browse” among the hundreds of questions you sent him and replied to some of them.
The first question (sent by Adriano) asked clarification about taxes for natural persons. The answer of our Managing Director was very clear and exhaustive: if someone works and does his/her business in Paraguay the tax rate is 10% both for natural and legal persons. But if someone chooses to live in Paraguay for more than 6 months a year, obtains his permanent residence and at the same time he manages his business outside the Paraguayan territory, he does not pay any tax on the income of his business outside Paraguay.
The second question (always sent by Adriano) concerned the Public Health. Adriano asked if it was free or not. In Paraguay Public Health is free and fair. Hospitals outside big cities are not at the top, however they are aceptable. For instance, they are not ideal for major surgery operations.
In any case, Living In Paraguay suggests you to take out a private health insurance. You pay only 50 or 60 Euros a month and you can access the best private clinics of the country and book all the specialist visits you need.
We reported and summarised your first two questions to highlight that they are the typical questions sent by interested people. People who are interested in the hidden resources of Paraguay and in the undoubted tax benefits Paraguay offers to all those who want to do their business in this country as well as to all those who want to obtain their permanent residence, reside in Paraguay and continue to take care of their business outside of Paraguay, without having to pay taxes on them.
Currently, in Europe and in Italy all the citizens (self-employed persons, employees, pensioners etc) literally succumb under all taxes and these data make us reflect and they deserve to be carefully considered.
We hope to have helped you and we are looking forward to meet you in the next webinar and articles about Paraguay. See you soon!