Paraguay on Business Leaders’ Radar: Why the Country Has Become a Strategic Alternative for Investing, Manufacturing, and Growing

Have you noticed that more and more business leaders are talking about Paraguay?

We were there this week carrying out tax, financial, and strategic consulting work, and we would like to share what we are seeing happen.

Paraguay is undergoing a very interesting transformation. And the best marketing there is does not come from government advertising or publicity campaigns. It happens when those who have already invested start recommending the country to other business leaders.

One of the country’s main advantages is electricity. Paraguay has always had low-cost energy due to Itaipu, but there were limitations related to distribution and commercialization. Now, with regulatory changes and new infrastructure investments, this advantage is expected to become even stronger for industry.

Another important factor is the cost of setting up an operation. Imported machinery and equipment often arrive at a much lower cost than in Brazil, mainly due to the difference in tax burden. In many projects, this can generate highly relevant savings.

There is also greater ease in conducting transactions in U.S. dollars, access to competitive credit, and a simpler regulatory environment for many companies.

From a labor perspective, costs and complexity are often lower when compared to Brazil. This provides greater predictability for those who are investing and creating jobs.

But the major highlight remains the Maquila regime. For those unfamiliar with it, Maquila is a regime that encourages companies to manufacture in Paraguay and export to other markets, making the country extremely competitive for industry.

Of course, not every business fits this model. Companies with high logistics costs need to run the numbers very carefully.

However, for many industrial, service, and even agribusiness segments, Paraguay is becoming an opportunity that deserves attention. In our view, the next 10 years may bring strong growth for the country, driven by competitive energy, industrial incentives, agribusiness expansion, and investment attraction.

We conduct feasibility studies, tax planning, and strategic analysis for companies that want to understand whether this opportunity makes sense for their business.

If you would like to know whether Paraguay could be an alternative for your company, send us a message on WhatsApp at +55 (47) 99604-9927.