Located at the heart of the South American continent, Paraguay is one of the world’s leading food and commodities producers and exporters, as well as the world’s biggest renewable energy supplier.
With nearly 7 million people, Paraguay has an open economy. Aided by the most competitive tax regime in the region, fiscal stability and a strategic location of an important river system centers of which provide an easy access to the major ports and markets in the region, the Paraguayan economy has grown at an average of 5 % over the last decade, outpacing its neighbors.
Paraguay has become a regional economic star, enjoying sustained growth and an on-going reduction of poverty. The reasons for this are the outstanding advantages it offers to foreign investors: free repatriation of capital and profits, equal treatment under the law for foreign companies and a corporate tax rate of 10%, the lowest in the region.
The implementation of disciplined fiscal regimes has contributed to one of the lowest public debts in the region, currently at around 20 %. As a result the rating agencies have upgraded the ratings of sovereign risk, and this improvement has facilitated the entry of Paraguay to international capital markets.
Lex Mundi in Paraguay
Lex Mundi provides coverage in Paraguay through its member firm, Peroni Sosa Tellechea Burt & Narvaja (PSTBN). As one of the largest and most prestigious firms in Paraguay, PSTBN offers a broad range of legal services for clients involved in international and local transactions. Firm specialization includes mergers and acquisitions, foreign investment, maritime and aviation, telecommunications, banking and international finance, mineral and oil exploration projects, labor relations, general civil litigation, taxation, counseling before local government agencies and legislative bodies, maquila projects, franchising and licensing agreements, intellectual property matters. Representation in the courts and administrative agencies of the government is an important activity of PSTBN, as plaintiffs or defendants in landmark cases.
- Advising the National Development Bank (Banco Nacional de Fomento) in international litigation.
- Advising LATAM in the negotiation and drafting of Aircraft Interchange Agreements.
- Advising Ambev Inbev in the merger with SAB Miller in Paraguay and implications in the local market.
- Advising Medship Paraguay S.A. and MSC in the settlement of an arbitration claim.
- Advising IAFIS Argentina on the legal and tax implications of a USD 250,000,000 joint venture with the Republic of Paraguay.
- Advising VEMARCORP S.A., a subsidiary of Westmont Development Inc, in a steel mill USD 50,000,000 investment project.
- Advising five of the top national and international shipping companies operating in the Parana-Paraguay waterway.