PARAGUAY INVESTMENT GUIDE 2019-2020 SUMMARY Investments and Exports Network of paraguay - REDIEX EDUCATION AND HEALTH IN COUNTRY TRAITS LEGAL FRAMEWORK PARAGUAY 1.1. Socio-economic, political and 4.1. Tax Regime 7.1. Education Services geographical profile 4.2. Labor System 7.2. Professional and Occupational 1.2. Land and basic infrastructure 4.3. Occupational health and safety Training Av. Mcal. López 3333 esq. Dr. Weiss 1.3. Service Infrastructure policies of covid-19 7.3. Health Services Asunción - Villa Morra 1.4. Corporate structure 4.4. Immigration Laws 1 4 7 Paraguay. Page. 9 1.5. Contractual relations between Page. 101 4.5. Intellectual Property Page. 151 Tel.: +595 21 616 3028 +595 21 616 3006 foreign companies and their 4.6. Summary of procedures and [email protected] - www.rediex.gov.py representatives in Paraguay requirements to request the foreign 1.6. Economy investor’s certification via SUACE Edition and General Coordination 4.7. Environmental legislation Paraguay Brazil Chamber of Commerce REAL ESTATE MARKET MAJOR INVESTMENT SECTORS IMPORT AND EXPORT OF GOODS 8.1. Procedure for real estate purchase 8.2. Land acquisition by foreigners 2.1. General Information 5.1. Regulatory framework for interna- Av. Aviadores del Chaco 2050, Complejo World Trade Center Asunción, 2.2. Countries investing in Paraguay tional trade Torre 1, Piso 14 Asunción - Paraguay 2.3. Investment sectors 5.2. Customs 8 Page. 157 Tel.: +595 21 612 - 614 | +595 21 614 - 901 2.4. Investments 5.3. Customs broker [email protected] - www.ccpb.org.py 2 5 5.4. Exports Page. 59 Page. 131 5.5. Imports 5.6. Tariff preferences, trade agreements Production, Design and Layout and rules of origin INCENTIVES FOR FOREIGN PHONEBOOK AND ADDRESSES INVESTMENT FINANCIAL SERVICES OF PUBLIC AND PRIVATE INSTITUTIONS 9.1. Central Government Translated: Grizzie Logan 3.1. Foreign investment 6.1. Financial Services Public Banking License N.°758 3.2. Incentives offered by Paraguay to 6.2. Financial services, private banking 9.2. Ministries and public institutions the investor and trust companies 9.3. Executive Secretariats of the For the making of this Guide we had the 3.3. Investment Guarantee Law Presidency of the Republic valuable contribution of information, data and statistics that were used in the general 9 9.4. Local authorities 3.4. International agreements 3 6 content, so we are grateful to all the people, Page. 161 Page. 75 3.5. Guarantee of investments Page. 143 9.5. Binational Entities companies, institutions, unions and chambers 3.6. Investor Benefits 9.6. Business organizations of commerce that gave their support. 3.7. Other benefits Liz Rosanna Cramer Campos Mario Aníbal Romero Lévera Minister of Industry and Commerce of Paraguay Director Nacional REDIEX Paraguay has the Best Climate for Investment Guide Investments in the Region Advantages and incentives to invest in Paraguay Mercosur is a market of more than 260 million people and this will take time and gradual implementation, but it will be Dear reader, Paraguay aims to be a competitive base of access to it, based part of the global market to which Paraguay will have access We are pleased to present the current Investment Guide According to international analysts, our country has a high on its distinctive attributes, such as macroeconomic stability, on preferential terms. At the same time, negotiations continue prepared jointly by the Network of Investment and Exports resilience to a difficult international scenario, being its main low energy costs, diverse and abundant natural resources, with South Korea, Singapore and Canada, always aiming at (REDIEX in Spanish), under the Ministry of Industry and strengths a stable macroeconomic environment, the abun- high quality of life at a reasonable cost, young workforce and expanding opportunities for foreign trade. This will be effec- Commerce, and the Chamber of Commerce Paraguay Brazil dant agricultural capacity and the wide availability of renew- demographic profile. tively exploited to the extent that the national industry be- (CCBP in Spanish). able and accessible electric energy. At the same time, Para- comes more competitive, with the incorporation of innovation guay aims to convert these strengths into higher value-added A recent success story is the auto parts industry, where in- and technology. The publication is intended to provide national and interna- products and services, thus creating new jobs and increasing ternational firms have bet on Paraguay, taking advantage of tional businesses with an overview of the conditions, advan- the diversification of our economy. these factors and the existing incentive structures for this Paraguay, like all the economies of the world, is expected to tages and incentives available to make an investment in Para- type of industry. suffer the effects of the economic crisis caused by the covid-19 guay, as well as to guide the various steps to be taken during As an opportune place for investment, we hope to contribute pandemic, but the aforementioned attributes and Paraguay’s the implementation phase. to the growth of your company, not only in relation to the Paraguay offers favorable conditions, especially for multina- productive framework make it a resilient country that produc- internal market of Paraguay, but also with a view to the Mer- tional companies seeking to migrate to a 100% renewable es what the world consumes now and will consume in the fu- Over the past few years, Paraguay has hosted hundreds of in- cosur market of which our country is a part. energy system, since Paraguay is the world’s second largest ture, such as food and renewable energy, as well as others. It is vestment projects, many of them with the support of REDIEX. exporter of electricity and only 16% of the total volume gen- worth mentioning the comparative success that Paraguay has Based on these experiences, the most frequent queries made REDIEX is an organization to articulate the productive and erated is consumed locally, leaving a very significant sur- had in the area of health, in terms of controlling the spread of by investors were identified and are covered in this guide. the public sector of Paraguay. In addition to the information plus for the use of these companies, as well as for the the virus, which was achieved thanks to clear messages from provided in this publication, REDIEX’s team of professionals is development of industrial hubs. the Government and total compliance by the population. Like all the countries of the region, Paraguay has also faced available to provide you with comprehensive advice on your the covid-19 crisis, achieving relatively low figures due to the investment during all phases of the project. Paraguay is making progress along a new road map for its Finally, it should be noted that Paraguay is only one step away pandemic and now, encouraging prospects for the recovery development, which incorporates a strategy for transforming from investment grade, a position it has managed to maintain of the productive sector. For this reason, our country offers a It is our sincere hope that this Guide will be the first step in production, based on strategic pillars such as: strengthening despite the crisis. The most important rating agencies in the timely socio-economic context for the continuity of interna- a shared success story, both for your company and for our institutional capacity, continuously improving the business world kept Paraguay at this status thanks to its solid growth tional investment, in accordance with best health practices. country’s economy. climate and de-bureaucratization, improving the competitive- in recent years, the economic resilience it has shown, despite ness of hubs, value chains and strategic sectors, and financing external shocks (including the current one), the credibility of and gross capital formation. its macroeconomic policy, which has a solid inflation targeting scheme and low external debt. The recent agreements reached between Mercosur and the European Union and EFTA will mean access to an integrated market of 814 million people for Paraguayan industry, with bi- lateral trade of more than USD 107 billion per year. Certainly, What is REDIEX? MISSION AND ROLE REDIEX is an office under the Ministry of Industry •Presenting advantages and investment opportu- Services provided: • Trade promotion: and Commerce, which aims to: nities in Paraguay to foreign investors and interna- •Application for business export diagnostics. Coordinate the necessary activities for the national tional counterparts. •Design of co-financing project. and international trade promotion of national com- 1.Promote local and foreign investments that would •Initial link between foreign companies interested •Support in the elaboration of a business plan. panies and products, as well as investment and ex- help drive the social and economic development in investing in Paraguay and government agencies •Presentation of the project before the Evaluation port projects of national companies. of the country. and private sector associations. Committee (CEP in Spanish) 2.Support the export of the most productive sec- •Post assistance: support to established foreign •Support in the execution process of the project Services provided: tors in Paraguay through networking with all key investors by detecting the operational obstacles actions. National and international fairs for the promotion players: government, business and civil society or- they face and helping them finding solutions. •Support in the process of operational and admin- of national companies and products. ganizations while generating joint actions. istrative closure of the project. •International marketing for Paraguayan products •Export promotion •Local and foreign commercial missions. MISSION Industry platforms: beef and meat products, food •Competitive intelligence: •Business rounds. •To encourage Paraguay’s economic and social de- and beverages, biofuels and renewable energy, To provide market intelligence services, accord- •Business networking. velopment through export promotion. auto parts and assembly, pharmaceutical chemi- ing public demand, private and academic sectors, •Seminars specialized in international trade.