(H1): Attracting foreign investors (Paraguay)

Brief: Why now

Regulatory breakthrough for games: in May 2025, law No. 7348/2025 was adopted, modernizing Law 1016/1997 and closing the monopoly; the authorities announced the opening of licenses for sports betting in 2026 under the auspices of DNIT/CONAJZAR.

Tax predictability: basic corporate tax rate (IRE) - 10%; updated reference books for 2025 confirm the flat regime and the modern taxation base.

New generation investment packages: in September 2025, a new tax incentive regime for domestic and foreign investments came into force (replaces/updates 60/90), simplifying access to benefits.

Operating costs: one of the lowest electricity prices for business in the region - about $0,048/kVt⋅ch (March 2025); the country relies on Itaipu/Yasiretá water resources.

Macro background: the Ministry of Finance/the Central Bank record steady growth: 3.8% expectation for 2024 and + 2.9% y/y in the first quarter. 2025, which supports investment demand.

Regulation of gambling: what has changed in 2025 and what will happen in 2026

CONAJZAR under DNIT. The reform has strengthened supervision and transparency: DNIT oversees the fiscal part, CONAJZAR - the profile regulator, "deconcentrated" in the DNIT structure. This is important for compliance and predictability.

End of exclusive and competition. Ley 7348/2025 has been adopted: the country is moving away from a monopoly in gambling and moving to a multi-operator model, incl. online. Industry releases and specialized publications confirm the license tender in 2026.

Legality marking. The implementation of a domain label is being discussed. bet. py for licensee sites is a simple guideline for users and partners.

What this gives the investor: clear entry/audit rules, a competitive environment instead of a "single operator," the growth of "white" online and marketing.

Taxes and incentives: how to reduce project TCO

Flat corporate tax (IRE) - 10%, without separate rates per cap. income of companies (taken into account in the general base).

Invest benefits (new law 2025): an updated incentive system for internal and external investments is a direct update of the classic Law 60/90 mode with faster procedures.

Maquila (Law 1064/97): under the export-oriented model - a single tax of 1% of the national value added/invoice; other nat ./munitz. taxes are not applicable (except for sales to the local market).

Free zones (Law 523/95): a set of fiscal relief for projects working in foreign markets; the regime is regulated by law and decree, reflected in international collections and PVS.

💡 iGaming practice: operating holding - by IRE 10%; back-office/contact center/IT integration can be optimized via Maquila (export services) or Free Zone if benefits> transaction costs of administration. (Individual structural check required.)

Energy and infrastructure: the advantage of "cheap kilowatt"

Electricity for business ≈ $0,048/kVt⋅ch (March 2025), which is noticeably lower than typical rates in developed economies. For date and contact centers, live studios and payment infrastructure, this is a direct decrease in OPEX.

Itaipu/Yasiretá: tariff solutions for Itaipu are approved until 2026, ensuring predictability of the cost of generation.

Finance and repatriation: no "narrow necks"

Free conversion/transfer of profits and repatriation of capital are guaranteed by investment standards; this is highlighted in the US Investment Outlook 2025.

The new investment modes 2025 are aimed at simplifying processes (one window) and extending benefits for large CAPEX projects.

Entry Roadmap (iGaming/Betting)

1. License Strategy (2025 Q4-2026 Q2).

We monitor the conditions of tender 2026 at DNIT/CONAJZAR (number of licenses, cap. requirements, offline/online coverage).

We check advertising/RG standards, technical integrations (KYC/AML, reporting).

2. Corporate structure and tax contour.

Holding (IRE 10%) + branch/subsidiary under Maquila/Free Zone for exported functions (BPO, dev, CRM, risk).

3. Localization of product and payments.

PYG-first, card/local payment gateways, transparent limits and commissions; preparation for domain labeling. bet. py.

4. Infrastructure and personnel.

Data node and contact center - in cities with better connectivity; calculation of the energy budget for channel $0,048/kVt⋅ch and redundancy.

5. ESG and compliance.

Responsible play procedures (limits/exclusions), data protection, public reporting of complaints and dispute resolution.

What the investor will ask: unit-economy and market

Tax burden is predictable (IRE 10%); with export service configuration 1% Maquila on NAV is possible.

Capital incentives and equipment imports under the new incentive regime (2025) are key to reducing payback.

Licenses/competition: competition will increase in 2026; marginality will depend on UX/market and the cost of attraction - but legal online will expand (outflow from the "gray").

Risks and how to cover them

Political and regulatory news. In 2024-2025, discussions about the "qualities of governance" appeared on the radar - investors urged to maintain the predictability of institutions; it is important to follow the rule-of-law agenda.

Secondary regulation. Exact technical requirements/advertising/RG for 2026 must be published on time; keeping the MVP roadmap under different scenarios.

Infrastructure bottlenecks. Although kilowatts are cheap, long-term consumption growth requires investment in networks - reserve channels and plan for distributed infrastructure.

Checklist for negotiations with government agencies/partners

Confirmation of license format and tender schedule (DNIT/CONAJZAR).

Tax Incentive Card (new law 2025) + Maquila/FTZ compatibility for exported features.

Payment stack in PYG and KYC/AML processes compatible with DNIT.

Energy-SLA and communication (cost/reservation).

Responsible Gaming policy and advertising restrictions.

Paraguay has entered a phase where regulatory modernization (law 7348/2025, DNIT↔CONAJZAR, licenses-2026), low transaction costs (IRE 10%, Maquila 1%, FTZ) and cheap green electricity create a rare window for foreign investors in gambling and digital services around them. With a neat structure (tax mix + compliance) and a focus on PYG payments, UX and RG, the project gets chances for a fast go-to-market and sustainable ROI - with benefits for the budget and employment ecosystem.

Useful sources for starting: new investment incentives (2025), tax directories (IRE 10%), Maquila and Free Zones, Itaipu energy, macro reviews of the Ministry of Finance/Central Bank, as well as DNIT/CONAJZAR messages about tender 2026.