Incorporation in Paraguay

First steps

The first step is to obtain a residence permit and cedula. The residence permit and cedula also give you the right to work in Paraguay. If you want to do this legally, you will need a tax number from the tax office.

Your personal RUC number

This tax number is called a RUC number in Paraguay. RUC means “Registro Único de Contribuyentes” and is basically a list from the tax office (SET) of who is a taxpayer. Together with the RUC, you will also receive your first invoice block, making you a fully operational sole trader in Paraguay.

It is important to understand that Paraguay is NOT an off-shore or tax heaven. When you get your RUC (tax number) you are starting a company. This company will have to report to the tax man (S.E.T.) every month. If you write invoices these are subject to 10% IVA (= V.A.T.) and 8 to 10% income tax on your net gains.

Net gains is your income minus all expenses inside of Paraguay you might have. This is not an easy matter but we take the time to explain everything in detail when you make your residency and cedula with us.