How foreigners buy real estate in Paraguay: full 2026 guide

Paraguay is one of the most open property markets in South America for foreign capital. A non-resident may, as a general rule, acquire the same assets as a Paraguayan, with restrictions confined to the border security zone. In this guide we review the legal framework, the operational steps, the actual costs and the taxes involved in property purchases by foreigners in 2026.

Legal framework: broad freedom with exceptions

The general rule comes from the National Constitution: foreign individuals and legal entities may engage in commerce and industry and acquire real estate on equal terms with Paraguayans. Law 2532/2005 "On the Border Security Zone" —and its implementing regulations— sets out the only relevant restriction: foreigners from neighbouring countries may not, in principle, hold rural land within 50 kilometres of the border. Urban border areas (Ciudad del Este, the historic centre of Encarnación) receive different treatment, and acquisition is generally permitted there.

There are also exceptions authorised by the Executive for significant investment projects, and the regime does not apply to property acquired before the law's enactment or by inheritance. Outside that strip, foreigners can buy without restriction.

For urban purchases in Asunción, Luque, Fernando de la Mora, San Lorenzo, Lambaré and Greater Asunción there is no nationality-based restriction whatsoever.

Required documentation

To sign a deed, a foreigner needs:

• A valid passport (if they do not hold a Paraguayan ID card).
• A Paraguayan ID card if residency has already been obtained. This speeds up the process.
• A power of attorney if buying remotely, granted before a notary in the country of origin and apostilled.
• The incorporation documents of the purchasing company if the transaction is made in the name of a foreign legal entity, with sworn translation and apostille.
• Proof of source of funds, required by the notarial firm for anti-money-laundering purposes (SEPRELAD).

Steps in the purchase

1. Selection of the property. Browse available properties or off-plan projects according to your investment profile.
2. Offer to purchase. A written document signed between the parties specifying price, conditions and timeframe.
3. Reservation or deposit. Usually between 1% and 10% of the price, with a private contract and closing deadline (30 to 60 days).
4. Due diligence. Verification of title at the General Directorate of Public Registries (DGRP), municipal debts, vehicle taxes, IVA and property tax. The notary issues a certificate of title status.
5. Public deed. Signed before a registered public notary. Payment of the balance of the price and issue of the tax slips.
6. Registration with the Public Registries. The notary lodges the deed with the DGRP. Registration takes between 30 and 90 days and is the act that transfers ownership against third parties.
7. Change of holder at the Municipality and update of the property roll.

Typical transaction costs

• Notarial fees: 1.5% to 2% of the value. Includes advice, drafting of the deed and registration.
• Stamp duty and registration fees: approximately 0.5% to 1%.
• Estate-agency commission: 3% to 5% of the value, typically borne by the seller unless otherwise agreed.
• IVA on the sale of new property (first sale): calculated on a deemed base equivalent to 30% of the price, at a reduced rate of 5% (i.e., 1.5% effective on the price). Check with the DNIT for the specific case.

See also our tax-system guide for the details of property IVA.

Recurring taxes after purchase

• Municipal property tax: approximately 1% per year on the property's fiscal value (which is significantly lower than market value). In Asunción collection is concentrated between March and June.
• Municipal service charges: sweeping, lighting, refuse collection. Settled together with the property tax.
• Vacant-plot tax: a surcharge if the lot has no building, in line with municipal regulations.
• IRP-GC on resale, if the holder is a Paraguayan tax resident: 8% on actual or deemed gain.

Buying through a company

It is common to structure the purchase in the name of a Paraguayan SRL, especially where the aim is an investment portfolio or where the structure dovetails with tax residency. Advantages:

• Succession: transfer through sale of partnership interests rather than a deed.
• Professionalisation: separate bank accounts and accounting.
• Predictable tax burden under IRE at 10% on profits.

Disadvantages: incorporation costs (USD 1,500 to 2,500), monthly accountant and greater complexity if there is only a single property.

Financing for foreigners

Paraguayan banks grant mortgages to foreigners, but they require:

• Permanent residency for at least 6 months.
• Demonstrable income in Paraguay or abroad with a banking history.
• Typical debt-to-income ratio: up to 30%.
• Terms: 10 to 20 years. USD rates between 6% and 9% depending on term and profile.

For the off-plan investment profile, developers themselves offer payment plans without a bank: a private contract with monthly instalments through to handover. Browse the available projects.

Risks to mitigate

• Titles with pending registration or encumbered with attachments — hence the criticality of the notary's due diligence.
• Double sales: mitigate by demanding a title certificate no more than 15 days old.
• Rural property close to the border with buyers from neighbouring countries — review Law 2532/2005.
• Property with unresolved cadastral charges — require the seller to regularise before signing.

Recommended areas in Asunción

For a first investment property, the areas with the greatest liquidity and yield are:

• Villa Morra: upmarket, corporate offices, stable yields.
• Las Mercedes: premium residential, sustained appreciation.
• Carmelitas and Mariscal López: a boom in off-plan developments, a strong entry point for investment.

Typical rental yields

In 2026 the prevailing cap rates in Asunción sit at:

• New apartments in Villa Morra / Carmelitas: 4.5% to 6% net per year (after charges and property tax).
• Used apartments in established areas: 5% to 7.5% net per year.
• Premium residential houses: 3% to 5% (most of the return comes from appreciation).
• Corporate offices: 6% to 9% depending on building and location.

Capital appreciation in Asunción's premium areas has run at between 5% and 10% per year in dollar terms over recent cycles, with windows of correction in particular years.

Step-by-step for the foreigner buying off-plan

Off-plan buying is particularly attractive because it allows current prices to be locked in and paid in instalments throughout construction.

1. Selection of the project. Review the developer, its previous projects and the construction progress. Browse pre-sale projects.
2. Reservation. A small deposit (USD 1,000 to 5,000) to hold the unit.
3. Sale agreement. A private document with a payment schedule typically of 24-48 instalments through to handover.
4. Payments in dollars. Bank transfer to the developer.
5. Handover and final deed. On handover, the public deed is signed and registered with the Public Registries.
6. First-sale IVA invoice. The developer issues an invoice with 5% IVA on the deemed base.

Alternatives for non-resident investors

If the buyer does not wish to relocate to Paraguay, the usual routes are:

• Direct purchase in their personal name: valid. On sale, IRP-GC is replaced by INR with withholding at source where there is no Paraguayan residency.
• Paraguayan SRL with non-resident partners: the SRL is the holder. Dividends remitted abroad are subject to INR at 15% (deemed base).
• Real-estate investment fund (FID): a more recent instrument for projects of a certain scale, managed by Paraguayan SAFIS.

Anti-money-laundering and source of funds

For transactions above the thresholds set by SEPRELAD, the notarial firm requires:

• A sworn declaration of the source of funds.
• Supporting documentation: previous property sale, dividends, remuneration or documented inheritance.
• A bank transfer (cash payments for high amounts are discouraged).

Having this documentation in order before signing significantly speeds up the closing.

Common mistakes

• Signing a private agreement without due diligence on title.
• Failing to verify that the developer has the land deeded in its name.
• Omitting to calculate building charges before investing in a premium tower — they can amount to 10-15% of gross rent.
• Buying rural property near the border without checking Law 2532/2005.
• Failing to require a municipal debt-clearance certificate before signing the deed.

Letting the property after purchase

For investors buying to let, the operational steps are:

1. RUC registration (resident individual or company) as landlord.
2. Lease agreement signed and stamped — it may be lodged with the Government's Senior Notarial Office for a certain date, although this is not compulsory in every case.
3. Monthly electronic invoicing in Sifen to the tenant.
4. Monthly IVA settlement according to the rental's purpose (residential: 5% on base; commercial: 10%).
5. Annual IRP or IRE return, integrating the results.

Remote management from abroad

For buyers who keep their residence in another country, it is common to delegate to:

• A property manager who collects rent, handles complaints and coordinates maintenance. Fees: 6% to 10% of gross rent.
• A local accountant who settles IVA and INR withholdings where applicable.
• A trusted notary for future deeds or transfers.
• A local bank account into which rents are paid.

The ViaParaguay directory lists vetted agencies, notaries and accountants.

Inheritance and succession

Property is transferred by a court-issued declaration of heirs. Paraguay does not levy a national inheritance tax. Court and notarial fees proportional to the estate's value are paid. Holding title through a company simplifies transfer via assignment of partnership interests / shares rather than probate proceedings.

Future sale: what to plan for

• Keep the title certificate and municipal debt-clearance certificate up to date in order to speed up any future sale.
• Retain invoices for capitalisable improvements so that they can be included in cost if the actual IRP-GC regime is elected.
• Properly document the source of funds for the sale (important if remitted abroad).
• If the gain is remitted abroad, calculate the INR on the non-resident's gain.