Paraguay Capital Gains Tax Guide 2026 — 0% for Residents
Paraguay imposes 0% capital gains tax on residents for most assets, including shares, securities, and foreign property. This is a direct consequence of the territorial tax system — only gains from Paraguayan sources are potentially taxable, and even then, specific exemptions apply.
Under Paraguay's territorial system, capital gains are treated according to the source of the asset. Gains from assets located outside Paraguay are foreign-source income and either exempt (dividends, securities) or taxed at 8% IRP. For Paraguayan-source capital gains, specific rules apply depending on the type of asset. Non-residents face a 10% withholding tax on gains from Paraguayan real estate.
CGT Rates for Residents
- Shares and securities: 0% — gains on sale of shares, bonds, and other financial instruments are fully exempt
- Foreign real estate: 0% — foreign property gains are foreign-source income, exempt under territorial rules
- Paraguayan real estate: 10% IRP if sold as an individual (or 8% IRP if treated as foreign-source speculation)
- Cryptocurrency: 0% for residents (treated as foreign-source or exempt capital gain)
- Business asset sales: Included in IRE at 10% if the assets were used in a Paraguayan business
Non-Resident CGT
Non-residents selling Paraguayan real estate are subject to a 10% withholding tax on the gross sale price. This is deducted by the buyer or notary at the time of sale. Non-residents are not subject to CGT on Paraguayan shares or securities.
Territorial System Impact
The territorial system means that residents of Paraguay who invest in foreign stocks, foreign real estate, or foreign businesses pay zero Paraguayan tax on the resulting capital gains. This is one of the most powerful benefits of Paraguayan tax residency. Combined with no wealth tax and no inheritance tax, Paraguay offers a highly tax-efficient environment for investment growth.
FAQs
Do I pay CGT when selling US stocks as a Paraguay resident?
No. Gains from selling foreign securities are foreign-source income and are exempt from Paraguayan tax.
What if I sell Paraguayan land at a profit?
As a resident, the gain is treated as Paraguayan-source income and taxed at 10% under IRP (or potentially 8% if structured as a foreign-source transaction). Non-residents face a 10% withholding on gross proceeds.
Disclaimer
This guide is for informational purposes only and does not constitute tax advice. Consult a qualified Paraguayan tax professional for advice specific to your circumstances.