Legislation

Paraguay Moves Investor Pass from Launch to Implementation

Paraguay Moves Investor Pass from Launch to Implementation A July cooperation agreement between the Ministry of Industry and Commerce and the National Directorate of Migration gives the Investor Pass an operational framework aimed at simplifying investor residence and company establishment procedures. 3 October 2026 Paraguay is moving the Investor Pass beyond its initial launch and into a more operational phase. The programme, introduced under MIC Resolution No. 283/2026, allows qualifying foreign investors to apply directly for permanent residence through several investment routes rather than first obtaining temporary residence. MIC and Migration formalise cooperation On 3 July 2026, the Ministry of Industry and Commerce (MIC) and the National Directorate of Migration signed a three-year cooperation framework specifically aimed at facilitating and accelerating the residence process for investors. The agreement calls for coordinated procedures and, where possible, the use of digital tools to simplify the steps connected with company formation and establishment in Paraguay. The agreement is important because the Investor Pass sits across two administrative systems. MIC, through SUACE, issues the Foreign Investor Certificate (CIE), while Migration is responsible for the residence permit. Closer coordination is therefore necessary if the programme is to deliver a genuinely faster investor-entry process rather than simply creating additional investment categories. Four investment routes are now available The current framework recognises four routes. Productive investments in industry, commerce or services start at USD 70,000 and require a business plan and at least five formal jobs. Financial investments start at USD 200,000 and must be maintained for at least two years. Real-estate investments also start at USD 200,000 but must be linked to an economic activity rather than personal or family use. Tourism projects have a USD 150,000 threshold and require a business plan and technical monitoring. The diversification matters because the previous model was primarily designed around an operating business and job creation. The financial and real-estate routes allow investors whose economic contribution does not immediately take the form of payroll to qualify under separate conditions. Permanent residence still requires compliance checks The Investor Pass does not make residence automatic. Applicants must document the qualifying investment and complete the relevant CIE and migration procedures. The framework preserves criminal-record checks, declarations concerning the origin of funds, anti-money-laundering controls and monitoring of the investment commitment. For foreign investors, the practical significance is therefore not only the lower or differentiated investment thresholds. The programme creates a clearer link between investment policy, migration and business establishment. Its success will depend on how consistently the two institutions implement the new procedures and whether the promised simplification is reflected in processing times and documentary requirements. Sources Ministry of Industry and Commerce — Paraguay strengthens foreign investment attraction with the new Investor Pass National Directorate of Migration — Paraguay Investor Pass launch National Directorate of Migration — MIC–DNM cooperation agreement of 3 July 2026 Ministry of Industry and Commerce / SUACE — Foreign Investor Certificate procedure © 2026 Paraguay Business Hub. All rights reserved.

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Paraguay Expands Mandatory Electronic Invoicing to New Taxpayer Groups

Paraguay Expands Mandatory Electronic Invoicing to New Taxpayer Groups DNIT Resolution 52/26 extends Paraguay’s compulsory electronic invoicing programme to six additional taxpayer groups between June 2026 and September 2027. Group 20 became subject to mandatory electronic invoicing on 1 September 2026, while the next phase will begin on 1 December. 18 September 2026 Paraguay is moving further towards the universal use of electronic tax documents. General Resolution DNIT No. 52/26 designates six additional groups of taxpayers as mandatory electronic invoicers and establishes a phased implementation calendar running from June 2026 to September 2027. Group 20 entered the system on 1 September Under the new timetable, Group 19 became subject to mandatory electronic invoicing on 1 June 2026 and Group 20 followed on 1 September. Group 21 will enter the system on 1 December 2026, with Groups 22, 23 and 24 scheduled for 2 March, 1 June and 1 September 2027 respectively. Affected taxpayers must issue their tax documents exclusively in electronic form through either e-Kuatia, the transactional system, or e-Kuatia’i, the free solution provided by the tax administration, depending on the technical and regulatory requirements applicable to each taxpayer. The virtual withholding receipt remains outside the general obligation. Paper authorisations cease after the mandatory start date Once a taxpayer reaches its compulsory start date, existing authorisations and stamping for pre-printed or self-printed documents lose validity from the following day. Before entering the electronic system, taxpayers must communicate the numbering already used and cancel non-electronic tax documents in accordance with DNIT procedures. The measure is therefore more than a change in invoice format. Businesses included in the new groups need to ensure that accounting systems, invoicing software, customer data and internal procedures are ready before their assigned date. A limited extension can be requested Resolution 52/26 also modifies the rules for extensions. Taxpayers that will join the transactional e-Kuatia system may request, once only, an extension of up to three months. The application must be filed at least 30 business days before the scheduled start date and must include supporting reasons, an implementation timetable and documentation signed by the taxpayer and its software developer. DNIT will evaluate each request technically and notify its decision through the Marandu tax mailbox. An extension is therefore not automatic and should not be treated as a substitute for preparing the migration in advance. Electronic invoicing is becoming the standard The resolution forms part of DNIT’s broader programme to expand the National Integrated Electronic Invoicing System (SIFEN). The tax authority states that the gradual incorporation of taxpayers is intended to improve traceability, authenticity and integrity of tax documentation while reducing irregularities associated with physical invoices. For foreign-owned companies operating in Paraguay, the practical point is straightforward: electronic invoicing should increasingly be treated as part of the standard tax-compliance infrastructure rather than as a regime limited to the country’s largest taxpayers. DNIT – General Resolution No. 52/26 on mandatory electronic invoicing DNIT – Official SIFEN / e-Kuatia resolutions DNIT – General Resolution No. 21/24, previous mandatory e-invoicing calendar © 2026 Paraguay Business Hub. All rights reserved.

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EU–Mercosur Deal Moves into the Compliance Phase

EU–Mercosur Deal Moves into the Compliance Phase for Paraguayan Exporters With the interim trade agreement provisionally applied since 1 May, the commercial opportunity for Paraguay is becoming increasingly practical: tariff preferences now depend on origin rules, quota management and the ability of exporters to meet European regulatory standards. The EU–Mercosur trade agreement is moving from political headline to day-to-day implementation. On 7 August, Mercosur’s External Relations Group resumed work under Uruguay’s rotating presidency and reviewed implementation of the agreement with the European Union, with Paraguay participating alongside the other regional delegations. The meeting confirms that the immediate challenge is no longer signing the deal, but making its market-access provisions usable by companies. The Interim Agreement on Trade has been provisionally applied between the European Union and the Mercosur parties since 1 May 2026. Paraguay completed its domestic procedures in March. Under the official Paraguayan assessment, the EU will liberalize 93% of imports from Mercosur within a maximum of ten years, while Mercosur will liberalize roughly 90% of imports from the EU over periods extending to fifteen years. Paraguay estimates that at least 95% of its current and potential exports will ultimately receive zero-duty or preferential access. For businesses, however, lower tariffs are only one part of the new framework. Mercosur’s Trade Commission completed the technical adjustment of tariff nomenclatures and rules of origin in May and confirmed that EU tariff-rate quotas had been loaded into the regional quota-management system. Paraguayan exporters therefore need to identify the correct product classification, satisfy the relevant origin test and comply with sanitary, technical and customs requirements before claiming preferences. The agreement may be particularly relevant for Paraguay because its domestic market is relatively small and its investment strategy increasingly depends on export-oriented production. The Ministry of Industry and Commerce highlights more flexible origin provisions for sectors such as auto parts and a transition toward self-certification of origin after the initial adaptation period. This can support manufacturing and processing projects that combine Paraguayan energy and operating costs with access to both Mercosur and European markets. For international investors, the practical lesson is straightforward: the EU–Mercosur agreement improves Paraguay’s market-access proposition, but investment models should now be designed around the agreement’s product-specific origin rules rather than headline tariff reductions alone. Supply-chain structure, sourcing decisions and documentary compliance can determine whether a Paraguayan operation actually qualifies for preferential entry into the EU. Sources Mercosur External Relations Group, 7 August 2026 — https://www.mercosur.int/el-mercosur-retoma-su-agenda-externa-bajo-la-presidencia-pro-tempore-de-uruguay European Commission — EU trade agreements, status of provisional application — https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/negotiations-and-agreements_en Paraguay Ministry of Foreign Affairs — EU–Mercosur agreement — https://www.mre.gov.py/acuerdo-birregional-entre-mercosur-y-la-ue-2/ Paraguay Ministry of Industry and Commerce — EU–Mercosur agreement overview — https://www.mic.gov.py/wp-content/uploads/2026/04/ACUERDO-DE-ASOCIACION-ENTRE-MERCOSUR_-UE.pdf

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