DoubleTaxationTaxes on salary: Paraguay preliminary data
How much income tax and social contributions are paid on a salary in Paraguay, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | PYG 473,235,609 ≈ €60,000 |
|---|---|
| Income tax | PYG 45,323,561 ≈ €5,746 |
| Employee contributions | PYG 42,591,205 ≈ €5,400 |
| Take-home pay | PYG 385,320,844 ≈ €48,854 |
| Employer contributions and payroll taxes | PYG 78,083,876 ≈ €9,900 |
| Employer's labour cost | PYG 551,319,485 ≈ €69,900 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 PYG 236,617,805 | €60,000 PYG 473,235,609 | €120,000 PYG 946,471,219 |
|---|---|---|---|
| Sole proprietor | PYG 19,295,602 9.1 % | PYG 40,591,205 9.5 % | PYG 83,182,410 9.8 % |
| Company | PYG 36,628,436 17.2 % | PYG 73,256,872 17.2 % | PYG 146,513,745 17.2 % |
Special tax regimes
There are no special regimes for individuals.
Tax residence
The tax residence check does not cover Paraguay yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 7887.260157 PYG (Dirección Nacional de Ingresos Tributarios (DNIT, Paraguay) — Tipos de cambio del mes de Enero 2026, USD (midpoint of compra 6719.39 / venta 6738.95); BCP site blocked by Cloudflare, 02/01/2026) ↗
Sources
- DNIT — IRP Rentas de Servicios Personales, cartilla informativa (Aug 2024)
- DNIT — El IRP se debe liquidar en marzo (deductions)
- DNIT — IDU cartilla informativa (Aug 2024)
- DNIT — IRE SIMPLE cartilla informativa
- DNIT — IRE RESIMPLE cartilla informativa
- IPS — Régimen general, contribution rates
- Paraguay TV (state) — minimum wage Gs 3,044,000 from July 2026
Data checked: 06/11/2026. An indicative calculation for a typical case. Not tax advice.