05/ 09
The right's Paraguay The right sold Paraguay as the future. President Peña announced his resignation
Flávio Bolsonaro said Brazilian industry was fleeing to Paraguay, the low-tax country. The data show something else[1]. Now Paraguay's president has announced his resignation, amid a scandal at a bank that held workers' social security money[2].
Feb 11, 2026 · Flávio, BTG event
Paraguay's best finance minister, because he's managing to take Brazilian industry there[3]
Apr 23, 2026 · Relocation adviser, to the BBC
99% of the people coming are right-wing[4]
Jun 18, 2026 · Brazilian business in Paraguay
A survey counts 232 Brazilian companies under the maquila scheme since 2007. They manufacture there and keep their headquarters in Brazil[1].
Sep 11, 2026 · Flávio, in Manaus
We've already lost more than 300 factories to Paraguay[5]
Nov 3, 2026 · Central Bank of Paraguay
Takeover of Ueno Bank, which held about US$380 million of Paraguay's social security fund[2].
Nov 5, 2026 · President of Paraguay
Each indicator has its own scale. Compare the bars within each block.
Tax burden
% of GDP · linear scale from zero
Taxes and contributions, social security included, according to the OECD.
See the figures in a table
| Country | Value | Period |
|---|---|---|
| Brazil | 31,7% | 2023 |
| Paraguay | 14,5% | 2023 |
Public spending on education
% of GDP · linear scale from zero
What the government invests in schools and universities, according to the World Bank.
See the figures in a table
| Country | Value | Period |
|---|---|---|
| Brazil | 5,6% | 2022 |
| Paraguay | 3,4% | 2022 |
Poverty
% of population · linear scale from zero
People living on less than US$8.30 a day, according to the World Bank.
See the figures in a table
| Country | Value | Period |
|---|---|---|
| Brazil | 20,6% | 2024 |
| Paraguay | 20,5% | 2024 |
Industry
The flight that never happened
Senator Flávio Bolsonaro (PL-RJ) said at least 25 times in 2026 that companies were closing or fleeing to Paraguay, according to Aos Fatos[10]. In September, he spoke of "more than 300 factories"[5].
Brazilian business owners in Paraguay count 232 companies in the maquila scheme since 2007. They expanded production there and keep their headquarters in Brazil[1]. Most joined before 2023: 72 under Bolsonaro, 34 in the first two years of Lula's third term[11].
Numbers
The model in numbers
Paraguay collects less than half of Brazil's taxes: 14.5% of GDP, against 31.7%[7]. It also spends far less on education: 3.4% of GDP, against 5.6%[8]. And poverty is practically the same in both countries[9].
Almost all of its electricity comes from a dam shared with Brazil. In 2024, Itaipu supplied 77.63% of Paraguay's power demand[12].
Resignation
The dream on sale and the resignation
In April, BBC News Brasil reported a wave of Brazilians heading to Paraguay in search of a "right-wing dream", driven by influencers' videos. Many of them sell advice to people who want to move[4].
On November 5, Peña announced his resignation. Two days earlier, the central bank had taken over Ueno Bank, which held about US$380 million of workers' social security money. Peña was a shareholder in the bank's holding company until March 2025. A crime report against him was sent to the prosecutors' anti-corruption unit; there is no formal charge[2].
The Chamber of Deputies still voted to open impeachment proceedings (juicio político). Congress has yet to accept the resignation, and Vice President Pedro Alliana is the expected successor[6].
Pass this page on
An image with the main fact, in story format, and the link to this page.
Referências12 sources
- 01Aos Fatos · Não é verdade que 232 empresas migraram para o Paraguai no governo Lula232 Brazilian companies in the maquila scheme since 2007, which keep their headquarters in Brazil, according to CEBRAS-PY.(opens in a new tab)
- 02La Nación (Argentina) · Qué se sabe de la renuncia del presidente de Paraguay, Santiago PeñaThe announced resignation, the takeover of Ueno Bank, the US$380 million from IPS, Peña's shares until March 2025 and the crime report sent to the anti-corruption unit.(opens in a new tab)
- 03InfoMoney · Flávio compara Lula a "Opala" e afirma que Haddad foi "o melhor ministro do Paraguai"Flávio Bolsonaro's remark calling Haddad "Paraguay's best finance minister".(opens in a new tab)
- 04BBC News Brasil (via O Povo) · 'Somos oprimidos no Brasil': a onda de brasileiros rumo ao Paraguai em busca de 'sonho de direita'The influencers' videos, the advice they sell and Roberta Viegas's remark.(opens in a new tab)
- 05Agência Cenarium · Em Manaus, Flávio atribui 'fuga de indústrias' ao Paraguai a Lula; dados têm outro recorteFlávio Bolsonaro's remark in Manaus: "We've already lost more than 300 factories to Paraguay".(opens in a new tab)
- 06Poder360 · Santiago Peña renuncia ao cargo de presidente do ParaguaiThe resignation, the juicio político approved by the Chamber and Pedro Alliana as successor.(opens in a new tab)
- 07OCDE, CEPAL, CIAT e BID · · Revenue Statistics in Latin America and the Caribbean 2025: comparative tables (Total tax revenue as % of GDP)Tax burden in 2023, general government: Brazil 31.7% and Paraguay 14.5% of GDP.(opens in a new tab)
- 08Banco Mundial · · Government expenditure on education, total (% of GDP)Public spending on education in 2022: Brazil 5.62% and Paraguay 3.40% of GDP.(opens in a new tab)
- 09Banco Mundial · · Poverty headcount ratio at $8.30 a day (2021 PPP) (% of population)Poverty in 2024: Brazil 20.6% and Paraguay 20.5% of the population.(opens in a new tab)
- 10Aos Fatos · Na contramão dos dados, Flávio Bolsonaro mente ao falar em recorde de falências de empresasFlávio repeated at least 25 times the claim of companies closing or going to Paraguay.(opens in a new tab)
- 11Poder360 · As empresas foram ao Paraguai no governo Bolsonaro, diz HaddadCompanies in the maquila scheme by government: 72 under Bolsonaro and 34 in 2023–2024.(opens in a new tab)
- 12ABC Color · Itaipú sostiene el 78% de la demanda del mercado eléctrico nacionalItaipu, shared with Brazil, supplied 77.63% of Paraguay's power demand.(opens in a new tab)
Source titles are in the language they were published in.