In recent months we have detected a significant interest from Argentine entrepreneurs who are tempted to expand their business to Paraguay, a country that for several years has been considered the ideal location to invest and to open new markets.
Our Residency and Company Incorporation in Paraguay service has been one of the most requested in recent times. The reasons are many, and here we share them.
Tax regimes
Many Argentine entrepreneurs decide to set up their companies in the neighboring country due to its tax advantages and legal certainty. Its tax burden is the lowest in Latin America: 10% Value Added Tax, 10% Corporate Income Tax and 10% personal income tax.
Maquila regime
Paraguay has an attractive maquila regime that lets entrepreneurs be competitive abroad. Raw materials and semi-finished goods can be imported without paying taxes or tariffs, on the condition that they are processed and then re-exported. This makes both transport and local production easier.
An excellent opportunity to develop foreign trade!
This is the case of one of our Argentine clients who imports bovine leather from China to re-export semi-finished leather to Thailand, Uruguay, Argentina, China, Indonesia and Vietnam. Their experience was positive because it allowed them to quickly gain a market position that would have been much harder to achieve with own resources.
Another client buys elastic and plastic-coated wire from the Chinese market and produces disposable masks in Paraguay for the United States and Brazil.
Legal certainty
Paraguay offers stable legislation that is friendly to foreign investment and a clear framework for the repatriation of capital and dividends.
Strategic location
Located in the heart of Mercosur, Paraguay provides easy access to Brazil, Argentina, Uruguay and Bolivia, with road and river logistics that connect with the Atlantic ports.
Young and competitive workforce
The country has a young labor force and very competitive wages compared to the rest of the region.
If you are considering expanding to Paraguay, MingTa Group can help you with company incorporation, residency procedures and the entire import process from China. Contact us to learn more.