Paraguayan Government Eases Requirements for the Shopping Tourism Regime

The Paraguayan Executive Branch has introduced significant modifications to the Shopping Tourism Regime (RTC) through Decree N° 3237, signed on January 16, 2025. These changes, implemented at the request of the National Directorate of Tax Revenue (DNIT), aim to facilitate the regime’s operation in the country’s main commercial cities.

A key modification is the substantial reduction in the minimum required integrated capital, from 6 billion to 300 million guaraníes, making the regime more accessible to local entrepreneurs. This adjustment includes new requirements for banking operational movements aligned with the revised capital scale.

The amendments primarily affect Articles 4° and 25 of Decree N° 2063/2024, introducing alternatives for new companies through a USD 25,000 bank guarantee. This measure enables startups less than two years old to participate in the regime, provided they meet the established guarantees.

The regime continues to operate in six strategic cities: Asunción, Ciudad del Este, Encarnación, Pedro Juan Caballero, Pilar, and Saltos del Guairá. This geographic distribution aims to strengthen major commercial corridors and enhance border trade with Brazil and Argentina.

Join our WhatsApp channel

Banking requirements have been significantly relaxed, with importers now required to demonstrate operational movements between USD 50,000 and USD 150,000, depending on their integrated capital, down from the previous USD 200,000 requirement. The DNIT assumes a more active role in managing the regime, with authority to establish operator qualification periods.

These modifications are part of a broader strategy initiated in July 2024, when the effective VAT rate was reduced from 1.5% to 1.25% for regime importers. The new provisions maintain a balance between requirement flexibility and necessary controls to prevent irregular activities.

Artículo en español aquí.