Detailed comparison
| Side-by-side comparison of taxation, cost of living and scores between the two countries. |  France | |
|---|---|---|
| Taxation | ||
| Dividend tax | 31.4% | 0%, Edge to this country |
| Capital gains tax | 31.4% | 0%, Edge to this country |
| Corporate tax | 25% | 10%, Edge to this country |
| Wealth tax | Yes, IFI (real estate only) | No |
| Direct inheritance | 45%Scale5-45% | 0%, Edge to this country |
| Cost and real estate | ||
| Monthly FIRE budget | €2,700 | €1,100, Edge to this country |
| Cost-of-living score | 38.5 | 100.0, Edge to this country |
| Reference city | Paris | Asunción |
| City-center 2-bed rent | €2,450 | €450, Edge to this country |
| Safety and FIRE score | ||
| Insecurity | 2.0, Edge to this country | 2.0 |
| FIRE Ultimate V3 score | 64.6 | 94.4, Edge to this country |
Verdict
- Paraguay wins on capital taxation: 0% on foreign-source dividends and capital gains thanks to the territorial system, against France's 31.4% flat tax, with no wealth tax and no inheritance tax in the direct line.
- France keeps a decisive edge on public services, healthcare, education (Paraguay caps at a PISA mean of 360), infrastructure, and access to the sea, since Paraguay is landlocked.
- Verdict: for a Lean or Mid FIRE living on a foreign portfolio and willing to accept a modest continental lifestyle, Paraguay maximizes net capital. For a family attached to services and education, France remains more rational despite the flat tax.
Frequently asked questions about this duel
Does Paraguay really tax capital less than France?
Yes, radically. Paraguay applies a territorial system: 0% on foreign-source dividends and capital gains (Law 6380/2019). France subjects the same income to its 31.4% flat tax (12.8% income tax and 18.6% social levies). On €40,000 of foreign capital income, the annual gap reaches around €12,560. Source: PwC 2026.
Is there a wealth tax or inheritance tax like in France?
No. Paraguay has neither a wealth tax (no equivalent of the French IFI, which hits net real estate above €1.3 million) nor inheritance tax in the direct line (France reaches up to 45% after a €100,000 allowance per child). Source: PwC 2026.
What is the real disadvantage of Paraguay against France?
Services and lifestyle. Paraguay is landlocked, with no access to the sea, weak public services, a limited public health system, and education among the lowest measured (2022 PISA mean of 360). France, despite its heavy taxation, offers top-tier health, education, and infrastructure. Source: PISA 2022 and Global Peace Index 2025.