Buying Property in Paraguay
Complete guide for expats and investors buying real estate in Paraguay. Prices, legal process, taxes, neighborhood analysis, and rental yields.
Quick Facts
- Foreigners have equal rights — same ownership rights as citizens under Law 117/91
- No residency required — you can buy on a tourist visa (Cédula helps with registration)
- Prices: $550-2,200/m² depending on neighborhood. Premium 2BR apartment from $120,000
- Closing costs: 6-10% of purchase price (tax, notary, registration, legal)
- Property tax: ~0.1% effective rate — among the lowest in the world
- Rental yields: 5-10% gross depending on neighborhood and strategy
Can Foreigners Buy Property?
Yes. Paraguay is one of the most foreigner-friendly countries in the world for real estate. Under Law 117/91, foreign nationals have the same property ownership rights as Paraguayan citizens. No special permits, no local partner requirements, no restrictions on residential or commercial property.
What You Can Do
- Buy property in your own name — no local entity needed
- Purchase on a tourist visa — residency not required
- Own multiple properties — no limit
- Buy through a company (SRL/SA) for asset protection
- Buy remotely via Power of Attorney (Poder Especial)
Restrictions to Know
- 50km border zone — Law 2532/05 restricts bordering-country nationals (Argentina, Brazil, Bolivia) within 50km of borders
- Non-bordering nationals (US, EU, etc.) need a Ministry of Defense permit for border zone land — procedural, not prohibitive
- No Cédula? Registration is possible but simpler with residency ID
- Asunción is not affected — border zone restrictions apply to rural/border areas only
Property Prices by Neighborhood
2026 market data. Prices in USD per square meter for apartments.
| Neighborhood | $/m² | Profile |
|---|---|---|
| Villa Morra | $1,500-2,200 | Premium / Capital preservation |
| Carmelitas | $1,400-2,000 | Modern high-rise / Walkable |
| Recoleta | $1,200-1,800 | Families / Established |
| Manorá | $1,080-1,520 | Emerging luxury / River views |
| Lambaré ★ | $700-1,250 | Highest growth potential |
| Luque ★ | $550-1,230 | Airport area / Logistics growth |
★ Best value for growth investors. Sources: PYG Real Estate, El Inmobiliario, market analysis 2026. See our neighborhood guides for detailed area profiles.
What Your Money Buys
1-2BR apartment in Lambaré or Luque. Basic finish, good for rental income. Net yields of 6-8%. Entry-level investment.
Modern 2BR in Villa Morra or Carmelitas. Furnished, pool, gym, security. The sweet spot for expat owner-occupiers.
Luxury 3BR penthouse or standalone house with garden in Las Mercedes or Manorá. Premium finish, river views possible.
High-end penthouse in Villa Morra, large house with land in gated community, or a small portfolio of rental units.
The Buying Process
Typical timeline: 4-8 weeks from offer to keys. See our notary guide for detailed legal procedures.
Find Your Property
Search on InfoCasas.com.py (best listings platform), Mercado Libre Inmuebles, Facebook expat groups, or local agents. Century 21 Paraguay operates here. Budget 2-4 weeks for property search. Always visit in person.
Make an Offer & Pay Reservation (Seña)
Negotiate the price — 5-15% below asking is normal. Pay a reservation deposit (seña) of 10-20% to take the property off market. Get a Boleto de Compraventa (preliminary purchase agreement) signed. At this point, engage your own independent lawyer.
Due Diligence
Your Escribano (notary) verifies: title at the Public Registry (check for liens, embargos, probate issues), Certificado Catastral (boundaries match), municipal tax clearance, and SEPRELAD compliance for funds over $10,000. For condos: check gastos comunes (maintenance fees) and building reserves.
Sign the Escritura Pública (Public Deed)
Both parties sign the transfer deed before the Escribano. Pay the remaining balance. The Escribano verifies identities, legal capacity, and that the property is free of encumbrances. You receive a notarized copy as immediate proof of ownership.
Registration
The deed is submitted to the General Directorate of Public Registries. This legally transfers ownership against third parties. Registration can take several months, but your notarized copy is valid in the interim. Pay transfer taxes and judiciary fees at this stage.
Costs Breakdown
All costs for a property purchase, based on a $100,000 apartment example.
| Cost Item | Rate | On $100K |
|---|---|---|
| Transfer Tax (ITI) | 1.5-3.0% | $1,500-3,000 |
| Notary (Escribano) Fee | 0.5-2.0% + IVA | $550-2,200 |
| Judiciary Tax | 0.74% | $740 |
| Legal Due Diligence | 1.0-2.0% | $1,000-2,000 |
| Municipal Transfer Tax | 0.2-0.3% | $200-300 |
| Registration Fee | Fixed | $36-40 |
| Total Buyer Costs | 6-10% | $4,000-8,300 |
| Agent Commission | 3-5% | $3,000-5,000 |
Note: IVA (10% VAT) applies on new-build purchases and is usually included in the sale price. Anti-money laundering (SEPRELAD) documentation required for transfers over $10,000.
Taxes & Ongoing Costs
Annual Property Tax
~0.1% effective
Officially 1% of cadastral value, but cadastral values lag far behind market prices. A $100K apartment typically pays $100-300/year. Among the lowest property taxes globally.
Rental Income Tax
5-10%
Residential rental income taxed at 5-10% depending on structure. Under Law 7548/2025, effective rates are often lower with deductions. RUC required for income-generating property.
Capital Gains on Sale
Non-residents: 15% effective rate (30% tax on 50% deemed profit). Residents: treated as ordinary income at 10% IRE rate. Paraguay's territorial system means only local property gains are taxed.
0% Foreign Income Tax
Paraguay's territorial tax system means income earned outside Paraguay is not taxed. This includes foreign rental income, overseas investments, and remote work income. See our tax guide.
Investment Analysis
Long-Term Rentals
- • Gross yields: 5-10% depending on area
- • Villa Morra: stable 5-7%, low vacancy (<5%)
- • Lambaré/Luque: 8-10%, higher growth potential
- • Lower management overhead
- • Stable cash flow, less turnover
- • Best for: passive investors, absentee owners
Short-Term Rentals (Airbnb)
- • Revenue: 2-3x long-term rental income
- • Average daily rate: $49-82
- • Top 10% properties: 89% occupancy
- • Market average occupancy: 48%
- • Peak month: August ($1,043 revenue)
- • Best for: active investors in premium areas
Appreciation Outlook
The Asunción property market has a CAGR of 3.15% through 2029 overall, but individual neighborhoods vary significantly. Lambaré leads at 12-15% annual appreciation, driven by infrastructure development. Villa Morra appreciates at 8-10% but from a higher base. The market is transitioning from informal to institutional — the “Two Asunciones” phenomenon means quality developments outperform generic supply.
How Paraguay Compares
| Metric | Paraguay | Mexico |
|---|---|---|
| Price per m² | $1,000-2,200 | $2,500-5,000 |
| Tax on foreign income | 0% | 30-35% |
| Property tax (effective) | ~0.1% | 0.1-0.5% |
| 1BR rent (city center) | $400-600 | $800-1,200 |
| Monthly lifestyle cost | $1,500-2,000 | $2,000-3,000 |
Paraguay is 30-40% cheaper than Uruguay across all categories. Over 20 years, that compounds to $290,000+ in savings. See our Paraguay vs Uruguay comparison.
Red Flags & Common Pitfalls
Never Do This
- • Never use the seller's Escribano or lawyer — always engage your own independent professional
- • Never buy without a title search — verify at the Public Registry for liens, embargos, and probate claims
- • Never rely on verbal agreements — they are worthless legally in Paraguay
- • Never skip property registration — an unregistered transfer leaves you unprotected against third-party claims
- • Never leave rural land unattended — squatters can claim prescriptive title on unmanaged land
Title Risks
- • Double selling — same property sold to multiple buyers (verify at Registry)
- • Sucesión — property stuck in inheritance/probate proceedings
- • Forged titles — rare in urban areas but possible in rural
- • Boundary disputes — always check Certificado Catastral
Financial Pitfalls
- • “Gringo pricing” — foreigners quoted 15-30% above market. Research prices on InfoCasas first
- • Hidden costs — utility debts, unpaid condo fees, or municipal taxes that transfer to the buyer
- • Currency risk — properties priced in USD but paid in Guaraníes. Lock the exchange rate
- • SEPRELAD scrutiny — large transfers need source-of-funds documentation
Frequently Asked Questions
Can foreigners buy property in Paraguay?
Yes, foreigners can buy property in Paraguay with the same rights as citizens under Law 117/91. No restrictions on residential or commercial property. You don't need residency to purchase — you can buy on a tourist visa. However, having a Cédula (national ID from residency) simplifies the registration process.
How much does property cost in Asunción?
Prices vary by neighborhood: Villa Morra (premium) $1,500-2,200/m², Carmelitas $1,400-2,000/m², Recoleta $1,200-1,800/m², Lambaré $700-1,250/m², Luque $550-1,230/m². A 2-bedroom apartment in Villa Morra costs $120,000-200,000. Budget areas start at $40,000-60,000 for a basic apartment.
What are the total closing costs when buying property in Paraguay?
Total closing costs range from 6-10% of the purchase price. This includes: transfer tax (ITI) 1.5-3%, notary fees 0.5-2% plus 10% IVA, judiciary tax 0.74%, legal due diligence 1-2%, municipal transfer tax 0.2-0.3%, and registration fees. Agent commission (3-5%) is typically paid by the seller.
What is annual property tax in Paraguay?
Annual property tax (Impuesto Inmobiliario) is 1% of the cadastral value for urban properties. Since cadastral values lag far behind market values, the effective rate is often just 0.1% of actual property value — among the lowest in the world. A $100,000 apartment might pay $100-300 per year.
Is there capital gains tax on property in Paraguay?
Yes. For non-residents, capital gains are taxed at an effective rate of 15% on the gross amount. For residents, gains are treated as ordinary income at the 10% corporate rate (IRE). Paraguay's territorial tax system means only gains on Paraguayan property are taxed — foreign property gains are not.
Can I get a mortgage in Paraguay as a foreigner?
It's difficult. Most Paraguayan banks require residency and local income history. Interest rates are high (12-18% in Guaraníes). The vast majority of expat purchases are cash transactions. Some developers offer payment plans for new-build properties, but these aren't traditional mortgages.
What is the 50km border zone restriction?
Law 2532/05 restricts citizens of bordering countries (Argentina, Brazil, Bolivia) from buying land within 50km of the border without executive authorization. For non-bordering nationals (US, European, Asian), the restriction is procedural — you need a permit from the Ministry of Defense and Interior, but it's not prohibitive. This mainly affects rural land, not Asunción property.
What are the biggest risks when buying property in Paraguay?
Key risks: title fraud (double selling the same property), properties stuck in sucesión (probate/inheritance disputes), squatter claims on unattended land, 'gringo pricing' (inflated prices for foreigners), and unregistered transfers. Always use an independent Escribano (notary) and lawyer — never the seller's. Verify titles at the Public Registry before paying any deposit.
What rental yields can I expect in Asunción?
Gross rental yields by neighborhood: Villa Morra 5-7%, Carmelitas 6-8%, Manorá 8-10%, Lambaré 8-10%, Luque 8-10%. Short-term rentals (Airbnb) can earn 2-3x long-term rental income, with average daily rates of $49-82 and top properties achieving 89% occupancy.
Do I need a RUC (tax ID) to own property in Paraguay?
Not to buy property, but you need a RUC if you generate rental income or participate in the financial system. The RUC confirms you as a tax resident, allows you to issue legal invoices (facturas), and is required for tax filings. Even if the property earns no income, monthly filings may be required to keep the RUC active.
Related Guides
Everything you need for property ownership and settling in Paraguay.