Real Estate in Paraguay
The right place to invest: A rising market, stable economy, and low taxation.
Live, Invest, and Profit in South America's Premier Tax Haven
Advantages of acquiring property in Paraguay
Open to Foreigners
Whether you intend to live in, rent out, or sell your property, the real estate market is open to foreigners for residential, commercial, and rural properties without restrictions. The only exception applies to land within 50 km of the borders; otherwise, opportunities are vast and accessible. Purchases can be made remotely via a notarized power of attorney, allowing a representative to act on your behalf.
Financial Stability and a Semi-Dollarized Economy
With a more stable currency and the lowest tax burden in the region, you can open dual-currency bank accounts (Guarani and Dollar) and benefit from favorable exchange rates against the Dollar and Euro. This flexibility facilitates international transactions and makes purchasing property even more accessible for foreign investors seeking diversification, profitability, and security in a stable financial environment.
Profitable Investment
Take advantage of prices more affordable than in Brazil, Argentina, and Uruguay, with average values ranging between USD 1,200 and USD 2,000 per m², and options available starting at USD 40,000. Beyond the attractive cost, rental properties offer stable returns between 4% and 8% per year, potentially reaching up to 10% in certain regions.
Low Taxation
Find a simple and transparent tax system, with no abusive property taxes. There is no inheritance tax, ensuring your assets pass to your heirs without extra costs. If you wish to profit from rentals while being a non-resident, you will be charged only 5% income tax, and annual property taxes generally range between 0.1% and 1% of the property value.
More Freedom, Security, and Quality of Life
Without paying taxes on your foreign income, take the opportunity to improve your quality of life by residing in a country with one of the lowest costs of living in the world, safety ratings higher than Brazil's, and a government that values your individual autonomy, allowing for homeschooling, gun ownership, and more flexibility to conduct your life and business without excessive state interference.
A Plan B Close to Brazil
Achieve more personal and fiscal freedom without leaving Brazil. With a strategic location between Brazil and Argentina, you have quick and easy access, with short and frequent flights, as well as accessible ground transportation. This means total flexibility to come and go whenever you want.
What Do You Need to Know Before Buying Your Property?
Taxes and Fees Involved
Municipal Transfer Tax (ITM)
Description
Real estate transfer tax (varies by municipality).
Value
0.3% to 0.5% of the property value.
Who pays
Seller.
VAT
Description
It applies only to 30% of the property value; the remainder is exempt.
Cost
10% of 30% of the property purchase price, corresponding to 3% of the total value.
Who pays
Buyer.
Registration fee
Description
Registry Office fee, processed at the General Directorate of Public Registries.
Cost
~ 0.8% of the property value.
Who pays
Buyer.
Public deed
Description
The public deed for the transfer of real estate ownership.
Cost
Up to 0.8% of the property value.
Who pays
Split between buyer and seller.
Real estate advisory
Description
Applicable to our partners' services.
Amount
~ 5% of the property value.
Who pays
Buyer.
Property tax
Description
Annual tax on the value of owned assets.
Amount
1% (0.5% for certain rural properties) of the value determined by this tax assessment.
Who pays
Owner.
Rental income tax
Description
Tax on income generated from property rentals.
Amount
Residents pay 10%, but may deduct expenses. Non-residents pay 15% on 50% of gross rental income.
Who pays
Owner.
Capital gains tax
Description
Capital gains tax on property sales.
Amount
Non-residents are taxed at 15% on 50% of the gross gain, resulting in an effective capital gains tax rate of 7.5%.
Who pays
Seller.
Investing without a heavy tax burden is possible!
Required Documents
For foreign buyers:
- Valid passport or national ID card.
- Proof of source of funds, such as bank statements or income tax returns.
For the property:
- Public deed of the property.
- Updated property title certificate, confirming ownership and absence of liens.
- Certificate of no outstanding municipal taxes or fees.
For the transaction:
- Purchase and sale agreement signed by both buyer and seller.
- Registration of the deed at the corresponding land registry office.
Step-by-Step Guide to Buying Property in Paraguay
- Selection and Due Diligence: After choosing the desired property, a legal verification is conducted to ensure the property is free of debts or liens and has a legitimate title.
- Offer and Purchase Agreement: After finding the ideal property, an offer is made. If accepted, a purchase agreement is drafted, specifying the terms, conditions, and agreed-upon price.
- Property Registration: Once the contract is signed and funds are transferred, the property must be registered at the local land registry, formalizing the transaction and securing your title.
- Tax Payments: Paraguay has one of the lowest tax burdens in South America, with property taxes ranging from 0.1% to 1% per year, plus an affordable transfer tax payable after registration.
By following these steps, our partners ensure a smooth purchase that complies with Paraguayan regulations.
Is Property in Paraguay Right for Me?
Investing in property in Paraguay is an excellent choice for various profiles, especially those seeking more freedom, security, and profitability. See if this opportunity makes sense for you:
We Recommend Buying Property in Paraguay For:
- Investors seeking profitability and appreciation: Paraguay offers affordable properties with high appreciation potential and rental yields between 4% and 10% per year.
- People who want to reduce taxes: With no tax on foreign income and some of the lowest property taxes in South America, Paraguay is ideal for those seeking tax optimization.
- Brazilians looking for a Plan B abroad: Proximity to Brazil, ease of obtaining residency, and an affordable cost of living make Paraguay a strategic option for personal and financial diversification.
- Those seeking more freedom and security: The country allows homeschooling, gun ownership, and has less state interference, in addition to having a higher safety rating than Brazil.
We Do Not Recommend Buying Property in Paraguay For:
- If you are looking for quick returns and real estate speculation: The Paraguayan market is solid and stable, but its growth is gradual, focused on long-term appreciation and consistent profitability rather than immediate gains.
- If you prefer investing in more renowned markets: Paraguay is an emerging market with attractive opportunities, but it does not yet have the same notoriety as destinations like the US, Portugal, or Dubai.
Frequently Asked Questions (FAQ)
Owning property in Paraguay does not grant you residency in the country. If you intend to stay for longer periods, you will need to apply for temporary residency, which is valid for up to 2 years and can be converted into permanent residency after another 2 years. This process is, in any case, extremely simple and affordable.
Additionally, it is possible to obtain permanent residency through the SUACE program, where investors can acquire residency by investing a minimum of 70,000 USD to establish a business in the country. For this, investing in real estate alone is not enough; you must have a viable business plan and hire local employees.
Interested in Paraguayan residency? Just get in touch with us.
Foreigners are free to purchase most types of property in Paraguay, including residential, commercial, and agricultural land, provided they are not located within restricted border areas.
In Paraguay, foreigners have access to mortgage loans, lines of credit, and personal loans for property acquisition.
However, it is important to note that the country does not have a highly developed mortgage market, which can make obtaining financing for non-residents a challenge, often resulting in higher interest rates.
Yes! Paraguay has an active rental market, with annual yields ranging between 4% and 8%, depending on the location and type of property.
No. Paraguay does not have an inheritance tax, ensuring that property can be transferred to your heirs without additional costs.
Paraguay offers diverse real estate opportunities in strategic cities, each with its own potential for appreciation and profitability.
- Asunción – The capital and largest economic center of the country, ideal for residential and commercial properties. Areas such as Villa Morra, Carmelitas, and Recoleta are highly valued, attracting executives, expatriates, and students.
- Ciudad del Este – The second-largest city in Paraguay and a commercial hub in the Triple Frontier, near Brazil and Argentina. The commercial real estate sector is highly sought after, especially by investors interested in shops and offices geared toward international trade.
- Encarnación – The "Pearl of the South" is one of Paraguay's most promising tourist destinations, with significant real estate appreciation. Its Costanera waterfront and Playa San José make the city ideal for investments in vacation properties and short-term rentals.
- San Bernardino – A favorite vacation destination for Paraguayans, located on the shores of Lake Ypacaraí. Vacation homes and short-term rental properties are the best investment options in this region.
- Alto Paraná and Caaguazú – For investors interested in the agricultural sector, these regions offer fertile land at affordable prices, ideal for farming and livestock, with high demand and continuous appreciation.
While not mandatory, working with a consultant makes the process safer and more efficient. An expert can help draft the Purchase and Sale Agreement, ensure all documents are in compliance, and conduct a Title Search to avoid legal issues. Additionally, a consultant assists with the correct payment of taxes and fees, and provides guidance on the permits and approvals required for property registration.
We can issue an invoice for the service. Please send us your preferred billing address.