The #1 Country to Invest in Latin America

Summary

Discover why Paraguay is a hidden gem for entrepreneurs and investors in 2025 and beyond. With one of the lowest inflation rates in Latin America, abundant underground water reserves, a stable economy, and a strong, business-friendly climate, Paraguay stands out as an ideal destination. The country offers low taxes, easy residency, and one of the youngest workforces in the region. With 100% renewable energy from hydroelectric sources and a strategic location in South America, Paraguay provides unparalleled opportunities for growth, making it a top choice for forward-thinking investors and innovators.

Takeaways

• 😀 Paraguay has one of the lowest inflation rates in Latin America, with a steady 3.8% in 2024 and projections for the same rate in 2025, making it a stable economy for investment.
• 💧 Paraguay is home to one of the largest underground freshwater reserves in the world, ensuring water security for its population and long-term sustainability.
• 💰 The Paraguayan currency remains strong, offering stability compared to many regional countries that have faced inflation crises.
• 🏢 Paraguay ranks #1 in business friendliness across Latin America, according to a report by Fundion Ketuo Vargas, making it an ideal destination for entrepreneurs.
• ✈️ Paraguay's central location in South America offers easy access to major regional markets, with short flight times to neighboring countries like Brazil, Argentina, and Uruguay.
• 💼 Paraguay's corporate tax rate is only 10%, one of the lowest in Latin America, and businesses involved in trade within the Mercosur region can qualify for a 1% corporate tax rate.
• 👷‍♂️ With a low median age (27 years) and competitive labor costs, Paraguay offers a young, dynamic workforce ideal for business development.
• ⚡ Paraguay generates 100% of its electricity from renewable hydropower, positioning it as a sustainable and eco-friendly location for business operations.
• 🌍 Paraguay offers one of the easiest second residency programs in the world, with no minimum investment required to qualify for residency.
• 💡 Paraguay presents significant opportunities for growth, with a stable environment, abundant resources, and an ideal setting for long-term investments.

Q & A

What makes Paraguay stand out as a destination for investors and entrepreneurs in 2025?

Paraguay is a country with one of the lowest inflation rates in Latin America, a stable economy, abundant natural resources, particularly a large underground water reserve, and a favorable business climate. Its competitive tax regime, ease of doing business, and strategic location in South America further enhance its appeal to entrepreneurs and investors.

How does Paraguay's inflation rate compare to other Latin American countries?

Paraguay's inflation rate is significantly lower than many other Latin American countries, such as Argentina and Brazil. In 2024, Paraguay's inflation rate was just 3.8%, and it is projected to remain similar in 2025, making it one of the most stable economies in the region.

Why is Paraguay's underground water reserve so important?

Paraguay holds one of the largest underground water reserves in the world, known as the Warren Aqua Fire. This resource is crucial given global concerns about water shortages and climate change. Paraguay's low population (6.8 million) ensures that this reserve will be able to supply water for generations to come, providing a sustainable resource for the country.

What is the significance of Paraguay's strong currency in Latin America?

The Paraguayan Guarani is one of the strongest and most stable currencies in Latin America. Unlike countries like Venezuela and Argentina, which have faced massive inflation, Paraguay has maintained a stable currency, which makes it an attractive option for investors looking for a predictable environment.

How does Paraguay's business climate compare to other countries in Latin America?

Paraguay is ranked number one for business friendliness in Latin America according to a report by Fundion Ketuo Vargas. It outperforms countries like Mexico, Uruguay, and Brazil, making it an ideal location for entrepreneurs looking to do business in the region.

How does Paraguay's tax regime benefit businesses?

Paraguay offers one of the most competitive tax regimes in Latin America. It has a corporate tax rate of just 10% and a personal income tax rate of 10%. Furthermore, businesses that trade within the Mercosur region may qualify for a 1% corporate tax rate, making Paraguay one of the most tax-friendly jurisdictions in the world.

What are the benefits of Paraguay's strategic location in South America?

Paraguay's central location in South America makes it a key hub for trade and transportation. It is well-connected to other countries with short flight times to major cities like Buenos Aires, Montevideo, and São Paulo. This accessibility benefits businesses looking to expand in the region.

What are the benefits of Paraguay's labor regime for businesses?

Paraguay offers a competitive labor regime with reasonable vacation benefits. Employees are entitled to 12 days of vacation in their first five years, 18 days between 5 to 10 years, and 30 days after 10 years. Additionally, businesses only need to pay a 13th salary, which further reduces labor costs.

How does Paraguay's median age contribute to its appeal for investors?

Paraguay's median age is just 27 years, one of the lowest in Latin America. This means a young, dynamic workforce that can fuel economic growth, making it an attractive destination for businesses looking for fresh talent and a strong labor force.

Why is Paraguay's renewable energy usage important for its economy?

Paraguay generates 100% of its electricity from hydroelectric power, making it one of the world’s leaders in renewable energy production. This sustainable energy source lowers costs for businesses and provides a stable and environmentally-friendly power supply, which is an advantage for energy-intensive industries.