Paraguay's maquila regime is one of the most competitive industrial incentives in South America. Regulated by Law 1064/1997 "On the Export Maquila Industry" and Regulatory Decree 9585/2000 (with subsequent updates), it allows domestic and foreign companies to process or assemble goods for export under a unique fiscal treatment.
How does it work?
The Paraguayan maquila operates under a temporary import scheme: inputs enter the country without paying tariffs or VAT, are processed or assembled, and the final product is exported. Only the locally added value is taxed, at a unique rate of 1%.
Eligible sectors
- Textile and garment manufacturing
- Electronics and technology
- Automotive industry (auto parts)
- Agroindustrial processing
- Exportable services (BPO, call centers, software)
Sector data (2025)
According to CNIME, by end of 2024 there were over 300 registered companies and nearly 29,000 direct jobs created.
Want to structure a company under the maquila regime? Contact our specialized advisors.