LATAM: Foreign Investors Survey 2017 ttitude Consulting
PARAGUAY
Greater Attractions
Interesting rules and policies for foreigners. Lowest taxes in the region. Stable macroeconomic policy( the only country that did not change its currency since the 40’ s). Severeign garanty for infrastructure funding. Growth since 2006: 4 or 5 % per annum( among the largest in the region).
Political Risks?
No. Some common and political tensions in the framework of a democratic regime.
Adequate Labor Laws?
Yes. Lax labor regime( low minimum wages and low demands).
Adequate Transparency and Corruption Framework?
Yes, but it lacks greater compliance with existent measures. Important anti-corruption rules by decree, creation of administrative institutions of prevention and repression, even through major national jurisprudence, based in turn on the rulings of the Inter-American Commission on Human Rights in transparency.
Suitable Fiscal Framework for Foreign Investment?
Yes. Same treatment for foreign and domestic investments. Lower tax burden in the region. The maquila is an interesting regime( production system by which companies located in Paraguay can produce goods and services for export).
Proper Framework for Promotion and Mutual Investment Protection?
Yes, especially for investments in public works. But legal certainty in Paraguay is not ideal( permanent source of political debate and society in general).
Advantages of Your country over Others in the Zone
Low tax pressure, macroeconomic stability, located next to Brazil( broad market potential). Stable institutions( removal of the President in 2012 but succession with no harm to private property or human rights).
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