In our Regulatory Snapshot, when we say a country treats Medicinal Cannabis as restricted, it means that products like cannabidiol (CBD) oils are only allowed under formal medicine registration rules. This does not exclude other interpretations, where the same CBD oil may be seen as a herbal medicine, supplement, or even a superfood. In many countries, this remains a “grey area” — a space where entrepreneurs must actively engage and help shape the path forward.
What you'll learn
Table of contents
Paraguay Introduction
Paraguay has emerged as a major hemp producer in Latin America, thanks to fertile land and favorable climate. While recreational cannabis remains illegal, Paraguay has legalized medical cannabis since 2017 and allows industrial hemp with up to 0.5% THC, one of the highest thresholds in the region. However, domestic patient access remains limited, with most production geared toward export.
---
Cannabis & Wellness Regulation Overview
Recreational Cannabis (Adult Use)
Status: Illegal.
- Possession, cultivation, and trafficking are criminal offenses.
- Penalties include prison time and heavy fines.
- Despite prohibition, Paraguay is one of the world’s top producers of illicit cannabis (marijuana and pressed brick weed).
Medical Cannabis
Status: Legal but limited.
- Law 6007/2017 established a national medical cannabis program.
- Patients can access cannabis medicines via prescription, but supply is inconsistent.
- Imports of cannabis-based medicines are permitted under Ministry of Health authorization.
- Local cultivation licenses granted since 2020, but most production is export-oriented.
Hemp & Industrial Definition
Status: Legal (≤0.5% THC).
- Paraguay’s definition of hemp is broader than EU’s (≤0.2% THC).
- Industrial hemp cultivation legalized for fiber, food, oil, and extracts.
- Several companies export hemp derivatives (CBD isolate, oil) mainly to Europe and the US.
CBD Oils and Products
Status: Restricted.
- CBD considered a medicine, not a supplement.
- Only available through prescription and import authorization.
- CBD cosmetics are not formally regulated, but hemp seed oil cosmetics are widely accepted.
Cosmetics & Artisanal Production
Status: Allowed within limits.
- Hemp seed oil cosmetics are legal and align with existing artisanal traditions.
- CBD-infused cosmetics remain restricted due to medical classification.
Functional Mushrooms & Adaptogens
Status: Allowed.
- Functional mushrooms like Reishi and Lion’s Mane are sold as food supplements.
- Imports subject to Dirección Nacional de Vigilancia Sanitaria (DINAVISA) approval.
Psilocybin / Psychedelics
Status: Prohibited.
- Psilocybin is classified as a narcotic.
- No therapeutic or research framework exists.
---
Operating Guidance (Hemp Vegan)
Wellness-Driven Coffee & Retail
- Coffee culture: strong opportunity to pair with functional mushrooms.
- Hemp foods: legal and attractive for wellness retail.
- CBD: restricted — not yet viable for open sale.
- Retail model: focus on superfoods, hemp nutrition, mushrooms, and artisanal products.
Clinical Tools & AI
- AI tools may support medical cannabis prescribing where doctors are authorized.
- Regulatory bottleneck = limited patient pool.
- Practical entry: wellness/functional adaptogens while monitoring CBD regulations.
---
Marketing, Claims & Compliance
Advertising & Claims
- Avoid therapeutic claims for CBD/hemp unless approved as medicine.
- Hemp foods: marketed as nutrition, not therapy.
- Supplements: structure/function claims possible with disclaimers.
Packaging & Labeling
- Labels must be in Spanish.
- Hemp foods/cosmetics: batch, expiry, and safety information required.
- CBD medicines: Ministry of Health authorization required.
---
Taxes, Import & Duties
- VAT: 10%.
- Hemp exports: encouraged by government (Paraguay positioning as hemp hub).
- CBD medicines: import permits required.
- Mushrooms/supplements: standard import duties.
---
Risks & Practical Notes
- Recreational cannabis: illegal, strong penalties.
- Medical cannabis: legal but small market, export-driven.
- Hemp: one of the most favorable THC limits globally (0.5%).
- CBD cosmetics: blocked locally.
- Strategy: leverage hemp seed foods + mushrooms first; explore export partnerships in hemp/CBD sector.
---
FAQ (Hemp Vegan)
How Hemp Vegan supports operations in Paraguay
We guide partners through wellness cafés, hemp foods, and adaptogens now, and help position for future CBD cosmetic or export opportunities.
Payroll & local operations
Employer social contributions ~16.5%. Hemp Vegan partners with local HR advisors for compliant hiring.
Creators vs. Employees
Creators can work as independent contractors; retail staff hired locally. Templates and SOPs adapted to Paraguay’s system are provided.
Ongoing support
Hemp Vegan monitors DINAVISA and Ministry of Health updates to adapt compliance and market strategy.
---
Sources & Review Log
_Last reviewed_: 2025-08-23
