Practical support, clearly scoped

Tax consultation

Explore whether your international income could benefit from Paraguay’s source rules and an appropriate business structure. Start with the foreign dividend opportunity, compare a US LLC with a local company, and prepare the facts a qualified adviser needs to assess your case.

Is this the right conversation for you?

People or business owners whose move, work, assets, or company plans raise questions across one or more tax systems.

Discuss my tax planning options

Explore why Paraguay might fit your plans

Preview scope

Agree the responsibilities before you begin.

Service scope, fees and professional responsibilities are not approved for sale. This page supports an informed initial discussion; it does not determine legal eligibility.

Keep more of your international income, when the facts fit.

The right combination of residence, income and business structure can create a meaningful tax advantage. Explore the opportunities separately, then assess how they could work together for you.

Potential 0% Paraguayan personal income tax on qualifying foreign dividends

In nonbinding consultation 380, DNIT concluded that the foreign dividends described in that case were outside Paraguayan national taxes because their source was foreign. This is a concrete opportunity to investigate for people receiving dividends from a company abroad.

The answer depends on the facts and is not a universal 0% tax rate. A US LLC distribution is not automatically a foreign dividend. Your income classification and obligations in every relevant country need separate review.

DNIT: nonbinding consultation 380 on foreign dividends

Two structures. Different opportunities.

A US LLC for an international business

A US LLC can be worth considering for an international business whose owner and activities are outside the United States. Its federal income tax treatment usually follows the owner when it has one member and has not elected corporate taxation.

For owners who are not US citizens or US tax residents, qualifying foreign source income that is not effectively connected with a US trade or business may fall outside US federal income tax. The LLC itself is not a tax exemption.

A case to review: a nonresident owner provides consulting entirely outside the US through a single member LLC, has not elected corporate taxation and has no income effectively connected with a US business. That income may have no US federal income tax, but the countries where the owner lives and works still matter.

Filing can remain mandatory even when no income tax is due. A foreign owned disregarded LLC may need Form 5472 and a pro forma Form 1120 for reportable related party transactions. State taxes, fees, withholding and other countries’ taxes must also be checked.

A Paraguay company for local operations

An EAS or SRL gives a local business a Paraguayan company structure, distinct from a US LLC. Consider it when your plan involves operating in Paraguay and you need to organize company administration alongside your personal residency.

Ordinary company income tax is 10% IRE on net taxable income. That provides a concrete starting point for comparing your operating structure and costs, rather than treating all business revenue as tax free.

Dividend taxes, VAT and reporting may also apply. Foreign customers do not create a blanket exemption: Article 6 has specific rules for foreign income of IRE taxpayers. Company formation does not guarantee a bank account.

Working from Paraguay changes the question

If you are working from Paraguay for foreign clients, using a US LLC or receiving payment abroad does not by itself make the income foreign source under Paraguayan rules. Where services are performed matters. The US LLC example does not establish an exemption in Paraguay.

Residency opens the planning conversation

A residence permit, tax residence and company ownership are separate matters. Paraguay has a separate tax residence certification process. Your former country may retain taxing rights, and US citizens or US tax residents can remain taxable on worldwide income.

Choose the structure around your income, where you work and where you are taxable. A US LLC plus Paraguay residency is a combination to assess, not a promise of zero tax worldwide.

Discuss my tax planning options

Explore US company setup Explore Paraguay company setup

Source linked for reference. Editorial draft; qualified professional review and approval are pending.

Assistance to discuss

An initial discussion to define the question and the jurisdictions that may need attention.
A preparation brief for a qualified tax professional, with the scope of the consultation agreed in advance.
Coordination of next questions and a clear distinction between advice, filings, and continuing support.

Dependencies and exclusions

This preview does not determine tax residence, liability, exemptions, reporting duties, or the treatment of any income.
Advice in other jurisdictions, filings, accounting, and implementation are separately scoped.
The assigned professional, qualifications, consultation deliverables, and fee must be confirmed before engagement.

A considered way forward.

Explain the decision you are considering and which countries are involved.
Agree what the consultation will answer and which records the adviser may later need.
Obtain advice from the qualified professional responsible for the relevant jurisdiction.
Separate any later filing or implementation work into a clear engagement.

A starting point for your scope.

Illustrative USD price. Subject to confirmation

Tax consultation

Discuss a scope that fits your circumstances.

$300 to $1,000

per engagement

Illustrative USD price. Subject to confirmation

Scope and preparation discussion
Coordination responsibilities agreed before engagement
External costs identified separately

Your involvement: Provide accurate documents and attend required steps.

Scope & exclusions: Government charges and external professional fees are not confirmed. Travel, translations and document legalization are separate unless agreed.

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Questions to resolve together.

Does becoming a resident resolve my tax position?

Do not assume that a residency application answers your tax questions. Ask a qualified adviser to assess your circumstances and the countries involved.

Can you promise a particular tax saving?

No. The proposed service is a scoped consultation. It does not promise a saving, an outcome with no tax due, or a particular treatment of income.

Should I put financial details in the inquiry?

No. Use test contact details in this preview and keep notes general. A secure process for any necessary records must be agreed with the responsible professional before live work begins.

Information is provisional and must be checked for your circumstances.

Content and source notes

Editorial draft. Qualified reviewer, review date and commercial approval are pending. Nothing on this page is individual legal, tax or investment advice.

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