Paraguay Inheritance & Gift Tax Guide 2026 — No Tax
Paraguay imposes no inheritance tax and no gift tax. Assets passed to heirs — whether real estate, cash, shares, or other property — are completely free of Paraguayan tax. This makes Paraguay one of the most attractive jurisdictions in the world for estate and generational wealth planning.
There is no tax on the transmission of assets by inheritance or gift in Paraguay. This applies to all assets located in Paraguay or abroad, and to both residents and non-residents inheriting Paraguayan assets. The absence of inheritance and gift tax is a cornerstone of Paraguay's tax-competitive environment, alongside no wealth tax and no CGT for residents.
Inheritance Tax
Paraguay has not levied inheritance tax for decades. There is no national or provincial tax on inherited assets. Beneficiaries — whether spouses, children, other relatives, or non-relatives — receive inherited assets completely free of tax. This applies to:
- Real estate located in Paraguay
- Bank accounts and cash
- Shares and securities (both Paraguayan and foreign)
- Vehicles and personal property
- Business interests
Gift Tax
There is no gift tax in Paraguay. Gifts of any value, between any parties, are not subject to tax. This includes gifts of cash, real estate, shares, or any other asset. The only potential cost is notarial fees for formalising the transfer of property titles. There are no annual or lifetime gift exemptions to track — gifts simply are not taxable events.
Estate Planning Considerations
While there is no tax on inheritance or gifts, estate planning in Paraguay should consider:
- Forced heirship rules: Paraguayan law requires that a portion of the estate be left to certain heirs (spouse and children). This may limit testamentary freedom for residents
- Notarial will: A properly executed will (testamento) is recommended to ensure assets are distributed according to your wishes
- Property title transfer: Inherited real estate must be registered with the Public Registry to update ownership. Notarial and registry fees apply
- Cross-border estates: If you hold assets in other countries, those countries may impose their own inheritance or estate taxes. Paraguay will not tax the inheritance, but the asset's location country may
FAQs
Do non-residents pay inheritance tax on Paraguayan assets?
No. Non-residents inheriting Paraguayan assets pay zero inheritance tax in Paraguay. However, they may be subject to inheritance tax in their country of residence.
Is there a stamp duty on gifts?
No. There is no stamp duty or similar tax on gifts in Paraguay. The only costs are notarial fees for formal documentation if required.
Disclaimer
This guide is for informational purposes only and does not constitute legal or estate planning advice. Consult a qualified Paraguayan lawyer for advice specific to your estate planning needs.