Private
Participation contract with collateral
An agreement between identified parties to finance a specific lot, with a registered pledge over the animals. It is the structure we use for individual investors who negotiate terms case by case.
Legal and tax framework
The rules, written where they can be read.
An honest summary of the Paraguayan regulations that apply to a cattle investment. It does not replace the advice of your lawyer or your accountant: it helps you arrive at that conversation knowing what to ask.
01Protection
What protects the investor in Paraguay
117Ley 117/1991
Equal treatment and free remittance
The investment law places the foreign investor on an equal footing with the domestic one, protects private property and allows the free remittance of profits and capital abroad. It is the foundation on which any structure with partners from outside the country rests.
5542Ley 5542/2015
Guarantee of tax invariability
For qualifying capital investments, it provides for stability of the tax burden for terms that can reach ten years. It requires prior approval of the project, so it is assessed before structuring, not after.
6380Ley 6380/2019
Taxes that apply to the business
Corporate income tax (IRE) is 10% on net profit. The sale of live animals is subject to VAT at 5%. The distribution of profits has its own withholding depending on the destination.
02Structures
Four ways to structure it, and when each one applies
The key difference is not the name of the contract: it is whether the capital is raised from identified parties or from the public. That determines whether you have to go through the Superintendencia de Valores.
Fiduciary
Cattle investment trust
Under Ley 921/1996, a trustee administers the assets (cattle or land) and the investors are beneficiaries of the autonomous estate. It provides asset separation and accounting transparency.
Regulated
Closed-end agricultural investment fund
A management company authorized by the SNV, units subscribed by the investors, a prospectus and mandatory periodic reports. It is the path when you seek scale and broad fundraising.
Corporate
Special-purpose company
A company created for the project, where the investors are shareholders and the operation is run by the company. Simple to understand, with the corporate and tax obligations of any company.
03Warning
On the so-called capital-return contracts
Schemes circulate in the market in which a company receives money from many people and promises to return it with a fixed gain. If that offer is made to the general public, it may fall under securities-market regulations and require registration with the Superintendencia de Valores of the Banco Central.
Our position is explicit: we do not raise capital from the general public by this route. Each agreement is private, with identified counterparties, registered security and a contract reviewed by both parties. When a project needs greater scale, it is channelled through a trust or a regulated fund, with the corresponding authorizations.
If you are evaluating a cattle investment proposal —ours or anyone else's— always ask for three things: the full contract in writing, the details of the security and the identification of the assets that back it.
This page is informational and reflects the state of the cited regulations as of the date of publication. It does not constitute legal, tax or financial advice, nor a public offering of securities. Consult professionals licensed in Paraguay before making a decision.