Paraguay - the Smart Ag Investment Destination in Latin America

Paraguay has emerged as a stable, outward-looking market that attracts foreign investment through positive production policies and targeted incentives. With an area larger than Germany, vast flatlands, and a population of just seven million, it has become an agricultural powerhouse in the region. Political stability and a clear country strategy have fostered consistent investor confidence and put Paraguay firmly on the global map.

Paraguay’s stable investment climate has been backed up by several rating agencies. 

During the year 2025 S&P upgraded its previous ratting of BB+ to BBB-. Moody also upgraded its ratings from Ba1 in 2022 to Baa3 in 2024, Paraguay retained its BB+ from Fitch but was updated with a “Positive” Outlook in 2025.

On its report, Fitch, highlights low debt, improved fiscal balance and resilient growth. In addition, the Gertulio Vargas Foundation (FGV) ranked Paraguay highest in Latin America on its Business Climate Index Report. Paraguay’s GDP has grown by an average of 3% per year for the period 2014-2024.

Strong agricultural performance

In 2024, Paraguay set a new record in beef exports, shipping 353,000 tonnes worth approximately USD 1.8 billion, supplying to a record 59 markets. In 2025 it hit a record in exports values, surpassing the 2 billion USD mark. 

The Paraguayan beef price closed 2025 at USD 4.41 per Kg deadweight. And achieved a yearly average price of $4.19 USD/Kg, a 22% increase from its 2023 average $3.42 USD/kg. 

At the producer level, low input costs and minimal dependency on global grain prices give Paraguayan producers a unique advantage over other markets also benefiting from stronger global beef prices.

In 2024, Paraguay set a record in soybean production, harvesting approximately 11 million tonnes. Around 8 million tonnes were exported, generating roughly USD 4 billion in trade.

2025 remained a solid year, though it fell short of the record-breaking 2023/24 season. Production reached about 10 million tonnes, with exports totalling 6.4 million tonnes and an estimated value of USD 3.5 billion. Despite the decline, Paraguayan soybeans have shown greater resilience than many competitors amid a global downturn in commodity prices.

Paraguay is the 3rd largest exporter of soybeans, and the 8th biggest producer. 

Forestry

Forestry is a fast-growing industry in Paraguay, commercial plantations grew significantly, according to the Journal of Forest Business Research (2024) Paraguay has quadrupled its plantation area since 2010, reaching 204,631 Ha’s in 2023, and currently growing at an approximate rate of 50,000 Ha’s per year.

Plantations benefit from favourable weather conditions, fast growth cycles, low costs of inputs and labour, and accessible land for business expansion. The country has been involved with responsible forest management programmes such as PEFC (Programme for the Endorsement of Forest Certification) and FSS (Forest Stewardship Standards). Finally, in 2023 a law was passed on carbon credits, (law 7190/2023) further encouraging forestry and agroforestry. 

Production Driven Policy

Over the years Paraguay has passed several laws and regulations that provide significant benefits to investors. 

Law on Investment Incentives (law 60/90) is designed to attract foreign investment and firms to enter the country, especially in industries that boost national exports or process raw materials.

•  Grants foreigners who buy land and property in Paraguay the same regulatory framework, benefits, and protections as nationals.
• Allows capital to move freely into and out of the country, and permits unrestricted payments abroad—such as dividends, interest, commissions, and royalties for technology transfer—subject to the taxes established by law.
•  Ensures free trade: businesses may produce and sell goods and services at market-determined prices (except where specific price controls apply) and may legally import and export permitted products.
• Exempts investments over USD 5 million from taxes on remittances and interest.

The Maquila Regime Law (law 1.064/9) is design to incentivize industrialization, processing and assembling. 

• Exemption or temporary suspension of customs duties on imports of raw materials, equipment and machinery.
• Single 1 % tax on either the national value added or the export invoice value from the maquiladora (whichever amount is higher).
• VAT paid on domestic goods and services can be recovered as a tax credit.
• Expedited process to set up companies.

Competitive and Simplified Tax Policy

Paraguay offers the most competitive tax systems in the region. 

• 10% Value Added Tax
• 10% Business Income Tax
• 10% Personal income Tax

Infrastructure

Paraguay has invested heavily on transport infrastructure. 

Ruta Transchaco (or route 9): crossing the Paraguayan Chaco, running from Asuncion, the Capital to the border with Bolivia.

Bioceanic corridor (under construction) The region’s largest highway project, this transnational route will link ports on the Pacific and Atlantic Oceans through Chile, Argentina, Paraguay, and Brazil—significantly improving logistics for agricultural producers in the region.

Puente de la Integración: A recently build bridge on the southeast border that facilitates trade with Brazil.

Energy

The largest hydroelectric project in the continent, the Itaipu Dam, supplying sustainable energy at a low cost. 

Summary

Paraguay has emerged as a stable agricultural powerhouse with a strong global outlook, underpinned by low public debt, improved fiscal balances, and consistent GDP growth; its agricultural production has steadily expanded, benefiting from to low input costs, affordable land prices that foster business growth, and secure land ownership, while clear policies and a simplified tax system make it an attractive destination for foreign capital, businesses, and individuals.

Brown&Co is currently marketing a an institutional-quality, 44,000 ha freehold grass-fed breeding and fattening operation—managing 49,000 head as of December 2025—in the heart of the Gran Chaco, Paraguay. 

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