Living in Paraguay: Personal income tax on locally sourced income, rates and tax residency certificate

In Paraguay, personal income tax is levied on Paraguayan-sourced income. Residents are subject to personal income tax (IRP). Non-residents are subject to a separate tax, the INR, at a rate of 15% (%) as published by the tax authorities. This page does not determine the residency requirement; this criterion should be verified with the DNIT (National Directorate of Taxes). It provides the rates and thresholds published by the tax authorities, the tax residency certificate, and information on social security contributions. It does not address assets or local savings.

Residents and non-residents: a duration criterion not established here

The basic text is Law 6380/2019, published by the tax administration, the Dirección Nacional de Ingresos Tributarios (DNIT). It contains three guidelines on residency:

• Article 49: Individuals, whether national or foreign, residing in the national territory are subject to personal income tax; ;
• Article 5 defines residence, but only for legal persons and other entities: constituted under Paraguayan law, or, for foreign entities, having established their domicile in the country from the date of their registration in the public register; ;
• Article 72: Non-resident taxpayers (INR) include natural persons, legal entities and other entities domiciled or constituted abroad who do not meet the residency requirement and do not have a permanent residence in the country.

In the articles presented here, Article 49 does not define the residence of a natural person, and no threshold of days is mentioned. Decree 3184/2019, which regulates personal income tax, also does not contain a definition in the passages presented here. General Resolution 69/2020 uses the expression "resident natural person" without explanation. The definition may appear in other articles or texts; this page does not derive it and refers to the National Directorate of Taxes (DNIT).

A tax on income from Paraguayan sources

Article 48 stipulates that the Personal Income Tax (PIT) applies to income from Paraguayan sources. Article 6 defines Paraguayan-source income as income derived from activities carried out in the Republic, from assets located there, or from rights used economically within the Republic. The DNIT guide on PIT does not specify how foreign-source income is treated; this page does not address this.

The rates published by the administration

Article 62 applies to individuals whose gross taxable income from personal services since January 1st exceeds 80,000,000 G. The Personal Income Tax (IRP) is due annually, in March. The form is No. 515, to be filed by the end of the third month following the end of the fiscal year, according to the DNIT guide. The Individual Tax (IDU) and Non-Resident Income Tax (INR) are due monthly, and the INR withholding is done using form No. 525.

The INR source rules (article 73) are not covered here: they should be checked with the DNIT.

A net income of 120,000,000 G: a numerical example (fictitious profile)

Situation. Marc, a fictitious profile, is a resident of Paraguay. His gross personal services income exceeds 80,000,000 G, and his net annual income is 120,000,000 G (assumed amounts).

Issue. He wants to estimate the annual IRP according to the scale in article 69.

Strategy. He divides his net income into tranches: 8 % up to 50,000,000 G, then 9 % up to 150,000,000 G.

Result. The 8% % bracket covers 50,000,000 G and yields 4,000,000 G. The 9% % bracket covers 70,000,000 G and yields 6,300,000 G. The total is 10,300,000 G, representing an average rate of 8.6% %. This calculation ignores deductions, the IDU (Individual Taxpayer Identification Number), social security contributions, and conversion to euros, which are not addressed here.

The tax residence certificate

General Resolution 65/2020 of the Tax Administration provides for a certificate attesting to residency status in Paraguay for tax purposes, "in accordance with current legislation." According to the 2020 resolution, applications must be submitted in person at the Administration's offices, using the prescribed form, until the electronic application process is available. The conditions are as follows:

• For a taxpayer: to have a RUC, to be up to date with their tax obligations and to present a copy of their valid identity card; ;
• for a person who is not or is no longer a taxpayer: a copy of their valid identity card; ;
• for a natural person: the consistency of migratory movement issued by the Directorate General of Migration.

If the application is accepted, the certificate is issued within 10 business days of submission. It is valid for one year from the date of issue. The resolution does not specify how many days of presence are required for a person to be considered a resident.

IPS contributions

According to a social security guide published by the Ministry of Labor, the employer contributes 16.5% of the worker's total salary, and the worker contributes 9% of their salary. The guide is undated and uses the 2025 minimum wage as an example. It does not specify whether a foreign national is covered. The contribution tables from the Instituto de Previsión Social (IPS) are not included here; they should be consulted directly with the IPS.

Temporary residence: what Migraciones says

The Migration Directorate's page on temporary residency, established by Law 6984/2022, indicates a duration of up to two years, renewable for the same period. Required documents include a valid identity document from the country of origin (such as a passport), a criminal record check, an INTERPOL certificate, proof of entry into the country, and sworn statements regarding compliance with the law, occupation, and address. Foreign documents must be apostilled or legalized and translated into Spanish, with some exceptions. The page does not specify income requirements for adult applicants, but it indicates that minors are exempt from proof of sufficient financial resources; for other categories, this proof must be verified with the Migration Directorate. It clarifies that temporary residency is a prerequisite for permanent residency. Other residency categories exist; this page does not address them.

What this page does not cover

This document does not address wealth tax, inheritance tax, local savings, the rules governing the source of non-resident income tax (Article 73), or other residency categories. It does not confirm or deny the existence of an annual wealth tax. The French consequences of the absence of a tax treaty are described on our dedicated page. Local taxation is determined by consulting a professional based in Paraguay. Matters pertaining to France, including the departure declaration, exit tax, and accounts to be declared, are addressed on our pages concerning tax residency.

What changes depending on your situation

• Your status as a resident or non-resident, which determines IRP or INR, 8 % or 15 % on a dividend.
• The level and nature of your income: personal services, capital, dividends.
• The source of your income: Paraguayan or not.
• Your immigration status and the existence of a RUC.
• Your situation with regard to France, as long as you are domiciled there.

The rule depends on your situation. No results are guaranteed.