Paraguay is strengthening its position as a preferred destination for foreign investments in the region, successfully capturing the interest of approximately 100 potential investors during the first quarter of 2025. According to data provided by the Ministry of Industry and Commerce (MIC), these entrepreneurs have formally begun the procedures to establish themselves in Paraguayan territory, requesting the corresponding certificates through the Unified System for Opening and Closing Businesses (SUACE). The main sectors attracting these investments are real estate, commercial, agroindustrial, advertising services, and manufacturing, demonstrating the economic diversification the country is experiencing.
Ernesto Rojas, Director of Investments and Special Regimes at SUACE, explained that the process foreign investors follow comprises several sequential stages: they begin with the certificate request, continue with permanent residency procedures, proceed with obtaining a Paraguayan identification card, and culminate with the formal opening of the company. To initiate this procedure, interested parties must meet minimum requirements established by national regulations, which include an initial investment of at least 70,000 US dollars and the creation of a minimum of five formal jobs for the local economy.
Geographic Diversification of Investments
The geographic composition of investors shows increasing diversification, surpassing the traditional regional predominance. While neighboring countries such as Argentina, Brazil, and Bolivia maintain a significant presence, Paraguay’s attractiveness has transcended borders, capturing the interest of entrepreneurs from Spain, Italy, Russia, and Australia. A noteworthy case mentioned by MIC authorities is that of an investor from Myanmar, interested in developing a gastronomic venture specializing in Asian cuisine, reflecting the expansion of the investment radar toward Paraguay from non-traditional markets.
This geographic diversification responds to the strategic positioning that Paraguay has achieved on the global investment map. Foreign entrepreneurs particularly value the business ecosystem, entrepreneurial environment, and economic openness that characterize the country. Rojas emphasized that, in addition to evaluating macroeconomic indicators, investors constantly conduct comparative analyses between the conditions offered by Paraguay and those existing in their countries of origin, finding significant competitive advantages in the Paraguayan context.
Competitive Advantages Driving Investments
Among the main factors positioning Paraguay as an attractive destination for foreign capital are its privileged geostrategic location in the heart of South America and its favorable tax regime. The SUACE Investment Director mentioned concrete testimonials from Brazilian investors who highlighted the agility and reduced bureaucracy in Paraguayan administrative procedures compared to other countries in the region. This procedural efficiency, combined with tax advantages, represents a substantial competitive differential for Paraguay in the Latin American context.
The Paraguayan legal framework includes specific tools designed to promote productive investment, among which the maquila regime and Law 60/90 stand out, offering significant benefits for those who decide to establish operations in the country. These instruments, together with stable macroeconomic conditions, have contributed to consolidating a favorable platform that allows Paraguay to compete effectively both regionally and globally in attracting foreign capital for various economic sectors.
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The sectoral analysis of investments during the first quarter of 2025 reveals a diversified panorama with five main areas. The real estate sector leads the ranking, with projects encompassing urban developments, leasing, and construction, driven by the growing residential and commercial demand in strategic areas of the national territory. It is followed by wholesale trade in computer, electronic, medical, and agrochemical equipment, which shows considerable dynamism linked to technological modernization in key areas of the Paraguayan economy.
The agroindustrial sector maintains its traditional relevance, occupying third place with investments focused on crops such as soybeans and corn, forestry, and export development, especially to demanding markets like the European Union. In fourth place are advertising services, which include marketing, entertainment, and multimedia productions, reflecting the boom in the digital economy and the professionalization of the creative sector in Paraguay. The top five is completed by the manufacturing sector, with investments aimed at the production of furniture, metals, machinery, textiles, and disposable products, contributing to the country’s productive diversification.
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