Paraguay’s Law No. 7546/2025 boosted investment and jobs in electronics and digital equipment.
Paraguay has enacted Law No. 7546/2025, published on 8 September 2025 and effective from 9 September 2025, to promote investment and formal employment in the manufacture and assembly of electrical, electronic, electromechanical and digital equipment.
The incentives apply to both national and foreign companies established in Paraguay, as well as to sole proprietorships.
Under the law, eligible businesses receive exemptions from customs duties on capital assets and production materials, a reduced VAT rate of 1.5% on materials, and a 4.5% VAT rate on locally sold goods produced under the scheme.
Applicants must submit an investment project to the Ministries of Industry and Commerce and Economy, and Finance for approval.
The regime lasts 20 years, with the possibility of extending for another 20 years.
