Paraguay

The Government of Paraguay (GOP) encourages private foreign investment. Paraguay guarantees equal treatment of foreign investors under law 117/91 and permits full repatriation of capital and profits under Law 60/90. Paraguay has historically maintained the lowest tax burden in the region, with a 10% corporate tax rate and a 10% Value-added Tax (VAT) on most goods and services. The GOP recognizes the need to improve Paraguay's infrastructure. In 2013 Paraguay passed legislation governing public-private partnerships (PPP), with the expectation of prompting an infrastructure boom and launching a new phase in the country's economic development. The GOP is expected to announce in 2015 PPPs for infrastructure modernization projects for the international airport in Asuncion and several highways. Large infrastructure projects are usually open to foreign investors.