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How A Country Once Treated With Derision Became The Favorite Destination For Brazilians Seeking Lower Taxes, Cheap Energy, Affordable Housing And Opportunities They No Longer Find In Brazil
For decades, calling something “Paraguayan” was synonymous with mockery in Brazil, a stigma fueled by jokes, stereotypes, and misconceptions about the neighboring country. However, while Brazilians laughed, Paraguay quietly followed a different path: it reduced taxes, modernized laws, and created an economic environment capable of attracting companies, investors, and today, hundreds of thousands of Brazilians.
A detailed report published by Elementar explains why Paraguay has become the main destination for migrants from Brazil in South America.
While popular imagination remained associated with smuggling, the country strengthened one of the most competitive tax systems in the region. The result was not long in coming: over 263,000 Brazilians now live in Paraguayan territory, creating a migratory flow that grows year after year, driven by lower costs and entrepreneurial opportunities.
From Historical Roots to Tax Incentives: How The Paraguayan Economy Rose Again And Became A Haven For Those Fleeing Brazilian Taxes
This movement did not start now. Its foundations were laid during the government of Alfredo Stroessner (1954–1989), a period marked by strong state control and closeness to Brazil. The construction of the Friendship Bridge and the Itaipu Treaty, financed in partnership with the Brazilian government, were key pieces of this integration. From the 1960s, thousands of Brazilians crossed the border in search of cheaper land and new agricultural opportunities, giving rise to the so-called “brasiguaios”.
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During the 1970s and 1980s, entire families sold properties in Brazil to acquire much larger areas in Paraguay, introducing soy and corn on a large scale. It was this agricultural base that decades later consolidated Paraguay as one of the world’s major grain exporters.
However, the decisive change occurred in the 2000s, with economic modernization. The Maquila Law (Law 1064/97), which gained strength in the following decade, drastically reduced the tax burden on exporting companies. According to BBC news, the Vice Minister of Industry, Francisco Ruiz Díaz, explains that 70% of Paraguayan exports to Brazil come from the maquila, a model allowing Brazilian industries to send inputs, produce locally, and reexport while paying much lower taxes.
And that wasn’t the only factor. Paraguay also offers ultra-cheap energy thanks to Itaipu. While in Brazil the average industrial cost is 123 USD/MWh, in Paraguay it drops to just 39 USD/MWh — equivalent to supplying three Paraguayan factories for the price of one Brazilian one. The result: Ciudad del Este, once synonymous with informal trade, now hosts over 98,000 Brazilians, becoming a business and education hub.
Students, Entrepreneurs And Whole Families: Who Are The Brazilians Crossing The Border And Why Does The Cost Of Living Matter So Much
In recent years, the profile of immigrants has changed dramatically. Out goes the traditional farmer and in comes the medical student. Currently, nearly 30,000 Brazilians are enrolled in Paraguayan universities. Felipe Monteiro, a student from Amapá, reports that in his class of 80 students in Ciudad del Este, only two are Paraguayans — the rest come from Brazil. And the reason is evident: while in Belém a medical tuition can reach R$ 8,000, in Paraguay he started paying R$ 1,200 and today pays R$ 1,900, a huge savings for any family.
Moreover, the cost of living is one of the most attractive in the continent. According to data from the portal Expatistan, living in Paraguay can be up to 28% cheaper than in Brazil in certain indicators. Although specific items, like lunch in upscale areas, can cost 35% more, the Big Mac Index shows that the sandwich is 28% cheaper in Paraguay.
In the real estate market, the difference remains striking: a one-bedroom apartment in a prime area costs an average of R$ 1,931.75 in Paraguayan territory, compared to R$ 3,019.48 in Brazil — a savings of nearly 36%. Utilities such as electricity and gas for an 85 m² property can be 74% cheaper.
The big advantage, however, is the tax system. The “10-10-10” structure establishes 10% income tax, 10% for companies and 10% VAT. There are no taxes on inheritances, donations or income abroad. In the maquila, exporting companies pay only 1% of gross revenue, while in Brazil business owners can face up to 27.5% income tax and 34% for companies. For entrepreneurs, this difference determines the future.
In addition to economic incentives, the residency process is also a competitive advantage. To obtain Temporary Residency, it takes only 1.5 to 4 months. After 1 year and 9 months, it is possible to apply for Permanent Residency. Citizenship takes longer: it requires 3 years as a permanent resident, but is still faster than in countries like the USA, Canada, or European nations.
Even with advances, Paraguay faces deep challenges: 27% of the population lives in poverty, and the country ranks 136th in the global corruption perception index — worse than Brazil, which appears at 104th. Still, the search for quality of life, lower taxes, and opportunities has led to a migratory movement that has exceeded expectations.
The transformation of Paraguay leaves a question in the air: for decades, the country was a target of humor and prejudice. Now, with so many Brazilians crossing the border in search of economic freedom and a better future, it remains to be seen who has become the real joke of the story.
No Bostil só sobrará choro e ranger de dentes
Vai continuar saindo muito mais pessoas do Brasil se esses ‘****’ continuarem no poder!!!
Me corrijam se eu estiver errado mas “país ocupa a 136ª posição no ranking global de percepção de corrupção — pior que o Brasil, que aparece na 104”, o brasil está pior pois está numa posição onde mais gente tem percepção da corrupção , 104° lugar