Buying Real Estate in Paraguay for Foreigners

Published on April 29, 2026 and written by Cyril Jarnias

Paraguay, a landlocked country in the heart of South America, is increasingly attracting foreign investors thanks to its dynamic real estate market and attractive opportunities. Whether you wish to acquire a second home, a rental property, or simply diversify your assets, the process of buying real estate in Paraguay has certain specificities that are essential to know. In this article, we will guide you through the key steps and legal aspects to consider to carry out your investment project with peace of mind.

A Legal Framework Favorable to Foreign Investors

Paraguay offers a conducive environment for real estate investment for foreigners. Unlike some countries that impose restrictions, Paraguay allows non-residents to acquire real estate in full ownership, without any particular limitation. This openness is part of an overall policy aimed at attracting foreign capital and boosting the national real estate sector.

However, some specific points should be noted:

• Foreigners cannot acquire land located within a 50 km border security zone, except with special government authorization.
• The purchase of large agricultural areas (over 10,000 hectares) by foreigners is subject to approval by the National Congress.

Apart from these specific cases, foreign investors enjoy the same rights as nationals regarding real estate acquisition. This equal treatment is a major advantage for those looking to enter the Paraguayan market.

Favorable Taxation for Foreign Property Owners

The Paraguayan tax system stands out for its simplicity and attractive rates, making it one of the most competitive in Latin America. For foreign real estate investors, several aspects are worth highlighting:

• Rental income tax: Income from renting real estate is subject to a tax rate of 10%, one of the lowest in the region.
• Property tax: The annual property tax is calculated based on the fiscal value of the property, which is generally lower than its market value. The rate varies between 0.5% and 1% depending on the municipality.
• Capital gains tax: Capital gains realized from the resale of a property are taxed at a rate of 10%.
• Transfer taxes: Property transfer fees amount to approximately 1.5% of the property’s value.

It is important to note that Paraguay has signed tax treaties with several countries to avoid double taxation. Before investing, it is recommended to consult a tax expert to optimize your situation regarding international taxation.

Key Steps in the Acquisition Process

Buying real estate in Paraguay follows a relatively simple process, but it still requires following certain crucial steps:

1. Search and Selection of the Property It is recommended to use a local real estate agent to help you with your search. Make sure to visit several properties and compare market prices.

2. Verification of the Title Deed Before any transaction, it is essential to verify the validity of the title deed with the Registro de la Propiedad (Property Registry). This step ensures there are no disputes or mortgages on the property.

3. Negotiation and Purchase Offer Once the property is chosen, you can begin negotiations with the seller. It is common to pay a deposit (usually 10% of the price) to reserve the property.

4. Sales Contract A sales contract (Contrato de Compraventa) is drafted by a public notary. This document details the terms of the sale, the price, and the obligations of the parties.

5. Due Diligence Before the final signing, it is recommended to conduct a thorough verification of the property and its legal and tax situation.

6. Signing of the Deed of Sale The sale is finalized before a public notary by signing the Escritura Pública de Compraventa (notarized deed of sale).

7. Property Registration The notary handles the registration of the property transfer with the Registro de la Propiedad.

Essential Documents to Finalize Your Purchase

To successfully carry out your real estate acquisition project in Paraguay, you will need to prepare a number of documents:

• Valid passport
• Paraguayan tax identification number (RUC – Registro Único del Contribuyente)
• Proof of address (in Paraguay or your country of origin)
• Bank statements or other proof of financial solvency
• Notarized power of attorney (if you cannot be present for the signing)

For foreign legal entities wishing to invest, additional documents will be required:

• Company bylaws
• Certificate of good standing for the company
• Power of attorney for the legal representative in Paraguay

It is highly recommended to have all documents translated into Spanish by a sworn translator in Paraguay.

Tips to Secure Your Investment

To ensure the success of your real estate project in Paraguay, here are some essential recommendations:

1. Get support from local professionals The assistance of a lawyer specialized in real estate law and a reputable real estate agent is crucial for navigating the nuances of the Paraguayan market.

2. Conduct thorough due diligence Do not underestimate the importance of preliminary checks on the property, its history, and its legal situation.

3. Obtain all necessary permits If you plan renovations or a change of use for the property, make sure to obtain the required authorizations from local authorities.

4. Consider opening a local bank account This will facilitate your transactions and the management of your property remotely.

5. Stay informed about legislative changes The legal and tax framework can evolve. Keep yourself informed of changes that could impact your investment.

Conclusion: A Promising Market for Savvy Investors

Paraguay offers an attractive framework for foreign real estate investors, combining open legislation, favorable taxation, and a growing market. Although the purchase process is relatively simple, it is essential to prepare well and surround yourself with competent professionals to successfully carry out your project.

With a methodical approach and a good understanding of local specifics, investing in real estate in Paraguay can prove to be an interesting opportunity for asset diversification and potential returns.