What the maquila regime is
The maquila regime (Law No. 7,547/2025 and its regulations) allows a company in Paraguay to process, assemble, manufacture or provide services for a foreign contracting company (the "matriz"), exporting the result. In exchange for that export commitment, the maquiladora pays a 1% Single Maquila Tax, calculated according to the statutory taxable base and the conditions of the approved program, instead of the general taxes on income and on the imports used in the program. The statutory calculation must be evaluated according to the applicable maquila rules and the approved project.
It has become a relevant alternative for Brazilian industries that produce in Paraguay, in sectors such as textiles and apparel, auto parts, plastics, electrical components, food processing and services.
Main benefits
1% Single Maquila Tax
Calculated according to the statutory taxable base and the conditions of the approved program, replacing the general income tax and taxes on the program's imports and exports.
Temporary admission
Raw materials, inputs, parts and machinery enter with suspension of import duties, provided they are used in the program.
Freedom of location
The plant can be installed anywhere in the country, chosen by logistics, labour availability or energy.
Sub-maquila
Part of the process can be subcontracted to other approved local companies, which supports phased or outsourced launches.
How it works in practice
Contracting company abroad
A foreign company (often the Brazilian group itself) signs a maquila contract with the Paraguayan company.
Paraguayan maquiladora
A local company — owned by the group or a third-party contract manufacturer — carries out the process with its own people and facilities.
Program approval
The program, describing products, processes, inputs, people and investment, is filed through the VUE and approved by CNIME, the National Council of Export Maquila Industries.
Temporary import and export
Inputs enter under temporary admission; finished goods are exported to the contracting company or to other markets defined in the program.
Compliance and reporting
The maquiladora keeps inventory and program controls, files the 1% tax and reports to the authorities.
Who it fits — and who it doesn't
The regime fits operations where a meaningful part of the value is added in Paraguay and where the main market is outside the country. Labour-intensive or energy-intensive processes, assembly of imported components and export services are typical cases.
It is not a general tax rate for any company. Businesses selling mainly to the Paraguayan market, holding structures without real production, or programs that cannot document their processes and inventories are not good candidates. Domestic sales are possible only within limits set by the regulations and pay the general taxes.
Steps to set up a maquila operation
Feasibility and product analysis
Products, volumes, origin of inputs, destination markets and MERCOSUR origin rules if the goods go to Brazil.
Choose the model
Own maquiladora (new company) or contract with an approved third-party maquiladora / sub-maquila.
Company and facilities
Incorporation, RUC, location and the facility where the process will run.
Program filing
Preparation of the program and filing with CNIME through the VUE.
Start-up
Temporary import of machinery and inputs, hiring, first production runs and first exports.
Other incentive regimes
In addition to the Maquila Regime, Paraguay offers investment incentives under Law No. 7,548/2025. Eligibility and available benefits depend on the characteristics of each investment project and applicable regulations. Projects previously approved under the former Law 60/90 remain subject to their applicable transitional framework. Free trade zones (Law 523/95) have their own regime for goods sold to third countries. Which one makes sense depends on the market, the product and the size of the investment — they are assessed together in the implementation study.
General information subject to legal, tax, accounting and regulatory validation for each project. © 2026 HUBPY.
