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Paraguay Wealth Tax Guide 2026 — No Wealth Tax

Paraguay imposes no wealth tax. There is no annual tax on net worth, financial assets, cash, investments, or personal property. Combined with territorial taxation, no inheritance tax, and no CGT for residents, Paraguay offers one of the most favourable tax environments in the world for high-net-worth individuals.

Unlike many countries in Latin America and Europe that impose wealth taxes on net worth or specific assets, Paraguay has no such tax. Individuals and families can accumulate and hold wealth without any annual government levy on their assets or net worth.

No Tax On

  • Cash and bank deposits (in Paraguay or abroad)
  • Stocks, bonds, ETFs, and mutual funds
  • Real estate (beyond the separate annual property tax)
  • Business interests and company shares
  • Cryptocurrency and digital assets
  • Jewelry, art, antiques, and collectibles
  • Vehicles, yachts, and aircraft
  • Intellectual property and royalties

What Paraguay Does Tax (Limited)

While there is no wealth tax, Paraguay does impose some limited asset-based taxes:

  • Annual property tax: 0.5-1% of cadastral value on real estate (see Property Tax Guide)
  • Rural land tax (IMAGRO): 0.2-2% on rural land value
  • Vehicle registration tax: One-time tax on vehicle purchase and annual circulation tax

Comparison with Other Countries

Paraguay stands out among South American countries for having no wealth tax. For comparison: Argentina has a progressive wealth tax on assets over ARS 3M, Colombia has a wealth tax on net worth over COP 5B, Uruguay has a wealth tax on net worth over UYU 4M. Paraguay's complete absence of wealth taxation is unique even in the region.

FAQs

Is there a tax on luxury assets in Paraguay?

No. Paraguay does not impose any luxury tax on high-value assets such as luxury cars, jewellery, watches, art, or yachts. The only annual tax is the standard annual property tax on real estate.

Does Paraguay have a solidarity tax on high incomes?

No. Paraguay has no solidarity tax, surcharge, or additional tax on high-income earners. The flat IRP rates (8-10%) apply regardless of income level.

Disclaimer

This guide is for informational purposes only and does not constitute tax advice. Tax laws are subject to change. Consult a qualified professional for advice specific to your circumstances.

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