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Check out the Facebook site "º£½ÇÂÒÂ×s in Paraguay".  Lots of folks on that site who live here but work "on line".

the same for me, work as a visualiser,mostly for companies in Europe and China  can recommend EXPATS IN PARAGUAY  allso as MAJBJB  stated 1600 members and some freelancers, the tax rate for working on line is not 10 % but 0% !!!
if you work for a Paraguayan company it is 10 % but with allot of deductables ***

I know this is going to sound like some whacko but I do suggest that any expats using facebook and bragging about not paying taxes????  Not a good idea.  Americans are taxed worldwide with some modifications etc.  FB is mined daily by the NSA and the USA police state.  You never know when that might be used in the future as the courts have ruled that it is legal for them to record everything on the public net with the ability to use it later on for any legal action.   This is not a rant....I was a computer prostitute for years in Silicon Valley.  It's been common knowledge for several years now.  So I hope everyone understands the risk.  So best thing is to pay your taxes and not brag about doing the opposite.  Good luck all.

Happy   I am from Holland and not the States, complitely legal to work from Paraguay by internet by Dutch laws, we have a trade and law deals,between Holland and Paraguay, no sweat, think the rest of Europe as well  Palladino , so the States is making their expats hostages ?You can find more information on the º£½ÇÂÒÂ×s in Paraguay pages, allot freelancers there about 1600 chaps

0 tax , if you work by the web for companies abroad, and 10 % if you do a job for a Paragyajan company, minus deductable costs, check the site of º£½ÇÂÒÂ×s in Paraguay , earlier mentioned,

Americans residing overseas who qualify for Foreign Earned Income Exemption (over $100K USD presently) pay zero effective income tax on income under $100K that is earned overseas from non-US employer.  Contact your tax advisor for details.