PARAGUAY TRENDS AND DEVELOPMENTS Contributed by: Federico Valinotti, Andrés Nasser, Álvaro Rojas, Vivian Maldonado and Juan Manuel Ros, BKM - Berkemeyer
Juan Manuel Ros is a senior associate at BKM - Berkemeyer. His practice focuses on project finance, infrastructure and public procurement, and corporate law. Juan Manuel graduated from the National University of Asunción and holds an LLM from Georgetown Law Center.
BKM - Berkemeyer World Trade Center / Aviadores del Chaco 2050
Tower 3, 19th Floor Jacarandá Building Benjamín Constant 835
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Industrial policy and investment incentives In 2025, Paraguay enacted a suite of laws that rede - fine industrial policy and investment attraction. Law No 7546 establishes a dedicated regime for the pro - duction and assembly of electrical, electronic, electro - mechanical and digital equipment, with calibrated VAT bases to enhance margins and mandatory commit - ments to national value added tax, formal employment and technology transfer. Compliance is reinforced through dual supervision and the possibility of revo - cation for non-compliance, underscoring an emphasis on industrial chain development in technology-inten - sive sectors. Law No 7547 modernises the maquila regime, intro - ducing a digitised, flexible framework oriented to exports with a Single Tax of 1% applied to the higher of national aggregate or export invoice. It preserves established modalities and adds a service maquila option, enabling the use of local capabilities to serve foreign companies. Key features include temporary admission of inputs and capital goods, VAT refund rights for exporters, virtual transfer between maqui- ladoras , and limited domestic sales for pure maquila
Paraguay’s Reform Cycle Enters the Execution Phase Paraguay closed the first half of 2025 with a visible shift from legislative design to implementation. A wave of new laws and executive regulations is translating high-level policy into operational frameworks across infrastructure, carbon markets, property registries, payments, procurement and competition control. For investors, lenders and operators, this means a clearer compliance map, more predictable execution risk and a deeper pipeline of bankable projects. This article outlines the most relevant policy news and market signals, aligned with investors’ priorities: • legal certainty in property and dispute systems; • modern, connected capital and payments markets; • credible climate and energy policy; • a competitive industrial and incentives regime; and • a pragmatic PPP/procurement architecture that accelerates delivery while safeguarding transpar - ency.
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