Chile and Paraguay signed a new tax treaty that will replace their 2005 agreement, eliminating double taxation and strengthening tax cooperation.
Chile’s government announced that President José Antonio Kast and Paraguayan President Santiago Peña signed a new income and capital tax treaty on 1 July 2026.
The new trade agreement with Paraguay eliminates double taxation on the same income and assets, providing greater legal certainty for workers and businesses in both countries. It also introduces modern measures to combat tax evasion, promoting transparent and compliant cross-border investment between Chile and Paraguay.
The treaty will enter into force following the exchange of instruments of ratification and, once effective, will replace the tax treaty between the two countries that has been in force since 2005.
