LegalUpdated 2025-01
Can Americans buy property in Paraguay?
Yes, Americans can buy property in Paraguay with the same rights as locals. No restrictions on foreign ownership.
Key Takeaways
- No restrictions on American property ownership
- Same rights as Paraguayan citizens
- Can buy without residency (but residency helps)
- Closing costs ~5-7% of purchase price
- Always use a local real estate lawyer
Yes, Americans can buy property in Paraguay with virtually no restrictions. Paraguay is one of the most foreigner-friendly countries for real estate investment.
Foreign Ownership Rights
In Paraguay:
- Foreigners have same property rights as citizens
- No restrictions on residential or commercial property
- No special permits required
- Can buy in your name directly (no local entity needed)
- No limit on number of properties
- Land near borders has minor restrictions (within 50km)
What You Can Buy
- Houses and apartments
- Land (urban and rural)
- Commercial property
- Agricultural land
- Investment properties
Do You Need Residency?
**No**, but it helps:
- You can buy property as a tourist
- However, having cedula (ID) simplifies process
- Some banks prefer residency for mortgages
- Opening escrow accounts easier with residency
The Buying Process
- **Find Property**: Work with licensed real estate agent
- **Make Offer**: Verbal then written (señal/reservation)
- **Due Diligence**: Lawyer checks title, liens, taxes
- **Sign Boleto**: Preliminary contract with deposit (10-30%)
- **Final Contract**: Escritura Pública (notarized deed)
- **Register**: Title registration at DGRP
Timeline: 30-90 days typically
Costs of Buying
- **Transfer Tax**: 2% of property value
- **Notary Fees**: 1-2%
- **Registration**: ~0.5%
- **Legal Fees**: 1-2%
- **Real Estate Agent**: 3-5% (usually paid by seller)
Total closing costs: ~5-7%
Price Ranges in Asunción
- **Budget Apartment**: $50,000-80,000
- **Nice 2BR Apartment**: $100,000-150,000
- **Luxury Apartment**: $200,000-400,000
- **House in Good Area**: $150,000-300,000
- **Premium House**: $400,000-800,000+
Financing Options
- **Cash**: Most common for foreigners
- **Local Banks**: Mortgages available with residency (8-12% interest)
- **Developer Financing**: Some projects offer payment plans
- **US Bank/HELOC**: Some buyers leverage US property
Important Considerations
- **Always Use a Lawyer**: Real estate scams exist
- **Verify Title**: Check for liens, unpaid taxes, boundary disputes
- **Physical Inspection**: Building quality varies
- **Neighborhood Research**: Visit at different times of day
- **Tax Implications**: Rental income is taxable in Paraguay
- **Exit Strategy**: Market can be illiquid for quick sales
Common Mistakes to Avoid
- Skipping due diligence
- Not verifying seller owns free and clear
- Paying without proper receipts
- Not checking property tax status
- Buying in flood-prone areas
- Ignoring condominium fees
Rental Income
If you rent out property:
- Rental income taxed at 10%
- Good yields: 6-10% gross
- Strong demand in expat areas
- Property management available (~10% of rent)
Sources
Have More Questions?
Explore our comprehensive guides to Paraguay
More Legal Questions
Can I work remotely in Paraguay legally?
Yes, remote work for foreign companies is legal and tax-free in Paraguay. No special work permit needed for foreign employment.
How do I get a Paraguayan driver's license?
You need residency (cedula) first. Then take a medical exam, written test, and driving test. Process takes 1-2 days and costs ~$50.
Can I bring my pet to Paraguay?
Yes, pets are allowed with proper documentation: health certificate, rabies vaccination, and import permit. Process is straightforward.
How do I ship belongings to Paraguay?
Sea freight is cheapest for large shipments ($2,000-5,000 for container). Air freight for essentials. Import duties apply unless you qualify for exemption.