Paraguay (PY)
Affordable South American residency hub with low taxes, warm climate, Mercosur access, growing expat communities, and a practical base in Asuncion, Encarnacion and Ciudad del Este.
2026 Annual Changes — Paraguay
Updated thresholds, benefits, and regulatory changes effective this year.
Key 2026 Paraguay items for expats: Law 6984/2022 residence practice is now the default framework, permanent residence usually follows temporary residence, the minimum wage remains Gs. 2,899,048/month in early 2026 pending CONASAM review, IPS contribution rates remain central for formal work, and the public holiday calendar changed under Law 7544/2025.
Key Changes for 2026
| Category | 2026 Value | Previous | Effective Date |
|---|---|---|---|
| Immigration Temporary residence remains the main first step for most new residents under Law 6984/2022. | Temporary residence up to 2 years, renewable; normally prerequisite to permanent residence | — | 2026-01-01 |
| Permanent residence DNM reminds residents to file change of category within the official window. | File during 3 months before temporary card expiry; limited late grace period with fines | — | 2026-01-01 |
| Minimum wage Private-sector minimum wage from July 2025 adjustment remains the early-2026 reference while CONASAM reviews new adjustment. | Gs. 2,899,408/month (per Decree 4122, 27 June 2025, +3.6%) | Gs. 2,798,309/month | 2025-07-01 |
| IPS contributions General employee/employer IPS contribution rates remain a core payroll compliance point. | Employee 9%; employer 16.5% general regime | — | 2026-01-01 |
| VAT IVA remains low by regional standards. | 10% standard; 5% selected reduced items | — | 2026-01-01 |
| Personal income tax (IRP) IRP (Impuesto a la Renta Personal) is threshold-based and low-rate by regional standards. | IRP applies to individuals whose annual income exceeds 10× the monthly minimum wage (approximately Gs. 28,990,480/year for 2025/26 reference). Rate: 8% on income within the first tier above the threshold; 10% on higher income. Employees below the threshold: exempt. Verify 2026 threshold update with DNIT (dnit.gov.py) after the minimum wage review. | — | 2026-01-01 |
| Public holidays New public holiday calendar under Law 7544/2025 includes Constitution Day. | June 20 Constitution Day added; 12 national holidays listed | — | 2026-01-01 |
| Residency demand DNM reported strong foreign residency demand in Q1 2026. | 18,000+ foreign residency applications in first quarter reported by Agencia IP | — | 2026-04-21 |
| Digital tax Electronic invoicing and DNIT digital compliance continue expanding. | Freelancers and companies should expect more digital filing/invoicing obligations | — | 2026-01-01 |
| Banking KYC Banks continue stricter source-of-funds checks for foreign residents and USD transfers. | Cedula, RUC/income proof and origin-of-funds documents increasingly important | — | 2026-01-01 |
| Housing USD rent/property clauses remain common in expat areas. | Negotiate exchange-rate mechanics and deposit currency in writing | — | 2026-01-01 |
| Healthcare Private coverage remains essential for non-IPS expats. | Budget Gs. 400,000-1.5M+/month per adult depending on age/network | — | 2026-01-01 |
January Checklist
Actions to take each January when new rates take effect.
- 1
Check whether minimum wage, IPS bases or payroll thresholds changed.
- 2
Download the DNIT tax calendar for your RUC ending digit.
- 3
Confirm DNM expiry dates for residence cards and cedula.
- 4
Update private health insurance premiums and hospital network.
- 5
Review lease currency clause and annual rent adjustment.
- 6
Check school fee increases before re-enrolment.
- 7
Review bank KYC/tax residency forms if your status changed.
Where to Track Annual Changes
-
Direccion Nacional de Migraciones (migraciones.gov.py) for residence requirements
-
DNIT (dnit.gov.py) for tax calendars and invoicing rules
-
MTESS (mtess.gov.py) for minimum wage and labour updates
-
IPS (portal.ips.gov.py) for contribution tables and benefit rules
-
BACN (bacn.gov.py) for laws, including Law 7544/2025 holidays
-
Agencia IP for official government news in English/Spanish
Paraguay changes can be announced by decree, ministry resolution or operational practice. For immigration and taxes, use current official checklists rather than old expat blog posts.
Annual Changes
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