Paraguay Leads Regional Ranking for Tax Competitiveness

Paraguay has been recognized as the country with the most competitive and neutral tax system in Latin America, according to the 2024 Integrated Tax Index published by the Adam Smith Center for Economic Freedom. This economic research institution, affiliated with Florida International University in the United States, once again ranked Paraguay first in the region—repeating its top position from the 2021 edition.

Óscar Orué, head of Paraguay’s National Tax Revenue Directorate (DNIT), welcomed the recognition during an interview with ABC Cardinal radio. He noted that the report highlights Paraguay’s competitiveness and tax neutrality, particularly in relation to corporate and consumption taxes, which are seen as key factors for a business-friendly environment.

Orué emphasized that Paraguay’s appeal lies in its stable tax framework, low rates, and clear regulations. He stated that the system is equitable and user-friendly, providing predictability for investors and positioning the country as a reliable option in the regional context.

In addition to its favorable tax regime, Orué pointed to other factors that strengthen Paraguay’s economic outlook: low electricity costs, macroeconomic stability, and a demographic advantage offering a young labor force. These elements, he said, are attracting growing interest from foreign businesses, particularly from Argentina, Bolivia, and Brazil.

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The DNIT chief also confirmed that the government of President Santiago Peña does not plan to modify the tax structure during the current term, which ends in 2028. This decision, he explained, is aimed at preserving investor confidence through a stable and predictable environment.

Finally, Orué noted that Paraguay’s continued lead in the Adam Smith Center’s ranking validates the country’s fiscal policies, which support competitiveness, job creation, formalization, and sustainable economic growth.

El artículo en español aquí.