LLC × residence calculator · Edition 2026.09
If you lived in Paraguay: how much tax you would pay on your LLC profit
Territorial system: foreign-source income is not taxed. The DNIT treats a service rendered from Paraguay as Paraguayan-source, so if you work there for the LLC, that income falls under IRP (8%, 9% and 10%).
Isaac Cubero · Checked on 14 September 2026 · territorial
At $100,000 of profit
On $100,000 of LLC profit, living in Paraguay, you would pay $0 income tax (territorial regime), with conditions.
territorial
| IRP on foreign-source income | $0 |
| Estimated total | $0 |
Sources: Law 6380/2019, arts. 47-60 (personal income tax) and DNIT official IRP-RGC guide · DNIT, dividend tax 8% / 15% and corporate tax 10% · Fixed exchange rate 5940 PYG/USD.
Rank 1 of 38 residences by effective rate at this profit.
- Real tax residence (effective residence and a valid cédula; no Paraguayan rule sets a minimum day count, the 120 days in art. 152 of Law 125/1991 are a domicile rule for notifications).
- Work rendered outside Paraguay.
- The 0% requires the work to be performed abroad; if your office is in Asunción, the income is Paraguayan (8-10% personal income tax). Tax residence is evidenced by the DNIT certificate (GR 65/2020: RUC and cédula), not by a day count.
- Your previous country may keep treating you as resident if you keep a home, family or business there; residence is changed, not declared.
- Law 6380/2019, arts. 47-60 (personal income tax) and DNIT official IRP-RGC guide
- DNIT, dividend tax 8% / 15% and corporate tax 10%
- Fixed exchange rate 5940 PYG/USD.
At three profit levels
What you would pay in Paraguay depending on what your LLC earns.
| Annual profit | Estimated tax | Effective rate | You would keep |
|---|---|---|---|
| $50,000 | $0 | 0% | $50,000 |
| $100,000 | $0 | 0% | $100,000 |
| $250,000 | $0 | 0% | $250,000 |
And if it were not an LLC
The five cheapest structures from Paraguay, distributing all the profit.
| Structure | Corporate | Withholding | You, in Paraguay | Total |
|---|---|---|---|---|
| US LLC | $0 | $0 | $0 | 0%$0 |
| UAE free zone | $0 | $0 | $0 | 0%$0 |
| Hong Kong Ltd | $8,250 | $0 | $0 | 8.3%$8,250 |
| Bulgarian EOOD | $10,000 | $4,500 | $0 | 14.5%$14,500 |
| Cyprus Ltd | $15,000 | $0 | $0 | 15%$15,000 |
Frequently asked questions
Does a US LLC pay tax if I live in Paraguay?
The LLC pays no US federal tax if it has no US activity. Territorial system: foreign-source income is not taxed. The DNIT treats a service rendered from Paraguay as Paraguayan-source, so if you work there for the LLC, that income falls under IRP (8%, 9% and 10%).
How much would I pay in Paraguay on $100,000 of profit?
On $100,000 of LLC profit, living in Paraguay, you would pay $0 income tax (territorial regime), with conditions. The 0% requires the work to be performed abroad; if your office is in Asunción, the income is Paraguayan (8-10% personal income tax). Tax residence is evidenced by the DNIT certificate (GR 65/2020: RUC and cédula), not by a day count.
Is Paraguay a territorial country?
Yes: it only taxes local-source income. The profit of an LLC operated from abroad is not taxed, provided the work is rendered outside Paraguay.
Next
The figure is the start. The structure is the decision.
How an LLC is formed and run from Paraguay, step by step: the US LLC from Paraguay guide. And to see your country against the other 37: the full ladder.