Spain taxes all worldwide income once you become a tax resident (top rate: 47%). Paraguay does not - only locally-sourced income is taxed. This is a fundamental structural difference that affects your total effective tax burden.
Exit tax applies in one jurisdictionCritical
Spain has an exit tax. If you establish residency and later wish to leave, you may owe tax on unrealized gains or assets at departure. The other country in this comparison does not have an exit tax.
CFC rules apply in one jurisdictionReview
Spain has Controlled Foreign Corporation (CFC) rules. Owning a foreign company as a resident may trigger local tax on undistributed profits - even if the company pays no dividends. The other country in this comparison does not have CFC rules.
Not tax advice. Tax laws change frequently. Verify with a qualified professional before making residency decisions.
Dimension Breakdown
Tax
Paraguay: 100+68Spain: 32
Paraguay100
Spain32
FieldParaguaySpain
Corp Tax Rate10%25%
Capital Gains10%28%
Crypto CGT0%28% (same)
Territorial SystemYesNo
IP Box RegimeNoNo
Tax Treaties1496
VAT Rate10%21%
Funding
Paraguay: 40-60Spain: 100
Paraguay40
Spain100
FieldParaguaySpain
Gov GrantsNoYes
EU FundingNoYes
Active VCs5100
Avg Seed Check$100K$800K
Visa
Paraguay: 50-40Spain: 90
Paraguay50
Spain90
FieldParaguaySpain
Startup VisaNoYes
E-ResidencyNoNo
Digital Nomad VisaNoYes
Path to PR3 yrs5 yrs
Processing Time60d45d
Residency
Paraguay: 66+23Spain: 43
Paraguay66
Spain43
FieldParaguaySpain
Citizenship (Naturalization)3 yrs10 yrs
Dual CitizenshipYesNo
CBI AvailableNoNo
Immigration Score9/107/10
Tax Res.
Paraguay: 80+35Spain: 45
Paraguay80
Spain45
FieldParaguaySpain
Tax Res Threshold120 days183 days
Worldwide TaxNoYes
Territorial TaxYesNo
Personal Tax Top Rate10%47%
Special RegimeNoBeckham Law (Impatriate Regime)
Exit TaxNoYes
Practical
Paraguay: 76-20Spain: 96
Paraguay76
Spain96
FieldParaguaySpain
Banking Difficultydifficulteasy
100% Foreign OwnershipYesYes
Formation Days7d7d
Formation Cost$800$1,500
Legal Systemcivil_lawcivil_law
Remote
Paraguay: 69+5Spain: 64
Paraguay69
Spain64
FieldParaguaySpain
DNV ExistsNoYes
DNV Min Income-$3,200/mo
Internet Speed30 Mbps220 Mbps
Coworking/mo$80$250
PE Risklowmoderate
Family
Paraguay: 80-15Spain: 95
Paraguay80
Spain95
FieldParaguaySpain
Safety Index5272
Intl SchoolsYesYes
Healthcare5282
Cost of Living3555
Family Budget/mo$2,500$4,000
Ecosystem
Paraguay: 40-20Spain: 60
Paraguay40
Spain60
FieldParaguaySpain
Unicorns05
Talent Pool3870
Avg Dev Salary$22,000/yr$42,000/yr
Coworking Densitylowhigh
Gov Pro-Startup5/107/10
Frequently Asked Questions
Is Paraguay or Spain better for startup founders?
Paraguay scores 69/100 overall versus Spain at 69/100. The best choice depends on your industry, team structure, and personal tax situation. Review the dimension-by-dimension breakdown above to identify which jurisdiction fits your specific priorities.
What are the corporate tax rates in Paraguay and Spain?
Paraguay has a corporate tax score of 100/100 and Spain scores 32/100. See the Tax Breakdown section above for specific rates and conditions.
Which country has better startup visa options - Paraguay or Spain?
Paraguay scores 50/100 for visa options versus Spain at 90/100. Check the Visa section for specific programs, processing timelines, and requirements.
How do Paraguay and Spain compare for family relocation?
Paraguay scores 80/100 for family viability versus Spain at 95/100. Key factors include healthcare quality, international school availability, safety index, and cost of living.
Can I compare Paraguay and Spain with other countries?
Yes. Use the interactive comparison tool at NomadSignal to compare up to 4 jurisdictions simultaneously. You can also view each country's full profile for deeper dimension-level analysis.
Data updated Q1 2026. Scores are based on publicly available information and may not reflect recent regulatory changes. Not legal, tax, or immigration advice. Verify all details with a qualified professional before making relocation or incorporation decisions.