Brazilian companies move to Paraguay for lower taxes

More than 200 Brazilian industries have crossed the border and settled in Paraguay in recent years. The figure, reported by Jornal da Band, highlights a growing movement of companies seeking cost reduction, lower tax burdens, and a more predictable business environment outside Brazil.

This shift does not happen by chance. Paraguay has begun to offer objectively more attractive conditions for industrial activity, including tax exemptions or reductions, fewer labor charges, and significantly less bureaucracy compared to Brazil. For entrepreneurs pressured by the so-called Brazil Cost, relocation has shifted from exception to strategy.

Among the sectors that have migrated the most are textile, food, metallurgy, and auto parts. These industries have found in the neighboring country an environment that allows them to preserve margins, increase competitiveness, and plan growth without the constant burden of new taxes and compliance obligations.

Until recently, Paraguay’s economy was largely supported by commerce and agriculture, which accounted for most of its Gross Domestic Product. This scenario has changed rapidly with the arrival of foreign companies, especially Brazilian ones, driving an accelerated process of industrialization and local job creation.

One of the most relevant factors behind this attractiveness is energy cost. In Paraguay, electricity prices are almost half of what is charged in Brazil, reflecting an abundant and stable energy matrix. In addition, corporate income tax stands at just 10%, creating a fiscal environment that is hard to ignore for producers and employers.

Meanwhile, Brazil continues along the opposite path. Higher tax burdens, state expansion, and bureaucratic complexity make it increasingly difficult to operate, invest, and scale businesses. For many entrepreneurs, the feeling is one of financial suffocation, where taxes are treated as the solution to everything and development becomes secondary.

The data confirms this perception. Between 2024 and 2025, searches for tax residency in Paraguay grew by 465%. In the same period, interest in opening companies increased by 220%. There was also a significant rise in searches related to investments, housing, and professional opportunities in the country.

This movement shows that Paraguay is no longer just a destination associated with shopping tourism. Today, it plays a new strategic role as a real alternative for entrepreneurs seeking to reduce costs, protect assets, and remain competitive in a more rational international environment.

In this context, offshore structures and internationalization strategies are no longer distant concepts reserved for large corporations. They have become legitimate tools for entrepreneurs who seek to legally and sustainably escape Brazil’s tax pressure.

Libertypass operates precisely at this point, offering complete solutions for those who wish to structure businesses abroad, obtain tax residency, organize offshore operations, and implement international tax planning aligned with regulations and each entrepreneur’s reality.

In a scenario where remaining exclusively in Brazil becomes increasingly costly, understanding and accessing international alternatives is no longer optional but a strategic decision. Having the right support makes all the difference in this process.