Foreigners Buying Apartment in Paraguay – Legal & Tax Considerations

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Get Residency Paraguay

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July 9, 2025

Asunción, the capital of Paraguay, continues to attract foreign buyers due to its open property ownership laws, competitive real estate pricing, and investor-friendly tax framework. European and U.S. citizens can buy apartments, houses, and land in Asunción with the same ownership rights as Paraguayan nationals, benefiting from a stable civil-law system and low ongoing holding costs.

This in-depth guide explains how foreigners can buy property in Paraguay step by step, covering ownership rules, legal requirements, required documentation, and practical limitations. It also breaks down real estate taxes in Paraguay, including VAT on new properties, annual property taxes, capital gains, and rental income taxation. Finally, it explains how property ownership can support residency and long-term planning, while outlining essential due diligence and risk management practices to ensure a secure investment.

Ownership Rights of Foreign Buyers in Paraguay

Full Ownership Rights for Foreigners

Paraguay ranks among the most foreigner-friendly real estate markets in Latin America. Foreign nationals may legally acquire 100% freehold ownership in their own name, with rights identical to those of Paraguayan citizens. This applies to apartments, houses, commercial units, and land.

Paraguay does not require:

a local partner or trustee
a corporate structure
nationality-based ownership limits

Foreign owners may freely sell, lease, inherit, or transfer property, subject only to standard zoning and urban planning regulations.

Limited Restrictions to Consider

Paraguay imposes a single, narrowly defined restriction: foreigners may not acquire property located within 50 kilometers of international borders. This rule does not affect Asunción or other major urban investment zones.

Additionally, foreigners may only purchase property with a fully registered and clean title (Título de Propiedad). Untitled land, informal plots, or agrarian reform land administered by INDERT generally remain unavailable to foreign buyers. For this reason, title verification is non-negotiable during due diligence.

Residency Is Not Required to Buy Property

Foreigners buying an apartment in Paraguay – legal and tax consultation with real estate lawyer in Asunción

Foreign buyers do not need Paraguayan residency or immigration status to purchase real estate. A valid passport is sufficient. Many investors buy property while visiting on a tourist status and decide on residency later — or not at all.

While property ownership is not required for residency, it can support applications by demonstrating economic ties and local presence. Legally, however, ownership and immigration status remain separate.

Step-by-Step Guide: Buying Property in Asunción as a Foreigner

1. Market Research and Professional Support

Start by researching Asunción’s real estate market and engaging:

a reputable real estate agent (inmobiliaria)
a qualified attorney or notary public (escribano)

Foreign buyers should strongly prefer professionals experienced with international clients. In Paraguay, the notary plays a central legal role, so early engagement is essential.

2. Property Search and Viewings

Focus on established neighborhoods such as Villa Morra, Carmelitas, Recoleta, and Las Mercedes. Compare multiple properties and assess:

location and neighborhood profile
building condition and amenities
rental demand and resale potential

There is no centralized pricing system, and negotiation remains common.

3. Offer and Preliminary Purchase Agreement

Once a property is selected, the parties sign a private purchase agreement (Contrato Privado de Compraventa)outlining:

purchase price
deposit (typically ~10%)
payment schedule
closing timeline
due diligence conditions

All property and owner details must match registry records exactly.

4. Legal Due Diligence (Critical Step)

Your legal team verifies through the Public Registry (Registro Público):

valid ownership title
absence of liens, mortgages, or encumbrances
correct cadastral registration

They also confirm:

property taxes are fully paid
HOA fees are current (if applicable)
building regulations and plans are compliant

Never proceed to closing without clean results.

5. Final Deed and Notarization

The notary prepares the Escritura Pública (public deed). At closing:

the buyer pays the remaining balance
both parties sign before the notary
powers of attorney may be used if needed

The notary ensures tax compliance and formalizes the transaction.

6. Registration and Transfer of Ownership

The notary files the deed with the Dirección General de Registros Públicos. Ownership transfers legally once registration completes.

The buyer should then:

take possession
transfer utilities
notify HOA
update municipal tax records

Legal Requirements and Key Documents for Foreign Buyers

Identification and Tax Registration

A passport suffices for purchase. A Paraguayan tax ID (RUC) becomes necessary only if you:

earn rental income
operate a business
register as a tax resident

Foreign buyers often fund purchases via international wire transfers.

Certificado de Libre Disposición de Bienes

This certificate confirms the buyer has no legal restrictions preventing asset acquisition. Your lawyer obtains it locally, and the notary requires it at closing.

Seller Documentation

The seller must provide:

original title
registry ownership certificate
lien-free certificate
municipal tax clearance

For condominiums, HOA fee clearance is essential.

Language, Translation, and Notarization

All deeds execute in Spanish. Foreign documents must be:

apostilled
translated by a certified Paraguayan translator

Notary fees average ~0.8% of declared value, often split between parties.

Residency and Investment: How Property Ownership Supports Immigration

Residency by Investment (SUACE Program)

Foreigners may obtain direct permanent residency through an investment of approximately USD 70,000, including real estate. This route bypasses temporary residency and suits serious investors.

Standard Residency (Law 6984/2022)

Most applicants follow:

2-year Temporary Residency
conversion to Permanent Residency

Property ownership is optional but strengthens applications by demonstrating economic ties.

Why Residency Benefits Property Owners

Residency offers:

better tax treatment on sales and rentals
easier banking and administration
low-maintenance permanent status
optional path to citizenship after 3 years

Conclusion: Buying Property in Asunción — Key Takeaways

Buying real estate in Asunción, Paraguay offers EU and U.S. citizens a rare combination of:

full ownership rights
low taxes and costs
legal clarity
strong investment fundamentals

When buyers follow formal procedures, conduct proper due diligence, and work with qualified professionals, the process remains secure and predictable.

With low closing costs (2–3%), minimal annual property taxes, attractive 6–8% net rental yields, and growing market demand, Asunción remains undervalued relative to regional capitals.

Beyond returns, property ownership can support residency, diversification, and long-term financial flexibility. Done correctly, buying property in Paraguay becomes not only a sound investment — but a strategic gateway to life and capital mobility in South America.

Sources: Foreign Investment & Legal Firms in Paraguay; Paraguay Tax Code (Law 6380/19); Cáceres & Schneider – Información Legal para la Compra de Inmueble; Rodríguez Silvero & Asociados – Impuestos en la venta de un inmueble; Reside Paraguay – 2025 Guide for Foreign Buyers; Infonegocios – Invertir en departamentos en Paraguay; The Wandering Investor – Asunción Real Estate Market 2025; Zuba Inmobiliaria – Impuestos en compra-venta; Expatra – Buying Property in Paraguay; Consultoria.com.py – Compra de inmueble en Paraguay.

Frequently Asked Questions: Buying Apartment in Paraguay

1. Can foreigners legally buy an apartment in Paraguay?

Yes. Foreigners buying apartment in Paraguay face no legal restrictions. Paraguayan law grants foreigners the same property ownership rights as citizens, including full freehold ownership (dominio pleno). There are no special permits, quotas, or residency requirements to purchase real estate.

2. Is residency required when buying an apartment in Paraguay?

No. Buying an apartment in Paraguay does not require legal residency. You can purchase property as a non-resident. However, many investors later apply for residency because owning property can support a residency strategy.

3. What taxes apply when buying apartment in Paraguay?

When buying an apartment in Paraguay, taxes are relatively low compared to other countries:

Transfer tax: usually 1%–1.5% of the declared value
Notary fees: approx. 1%–2%
Registration fees: minor administrative costs

There is no stamp duty, no luxury tax, and no foreign buyer surcharge.

4. Are there annual property taxes in Paraguay?

Yes, but they are minimal. Annual property tax (Impuesto Inmobiliario) is usually 0.1%–0.3% of the fiscal value, which is often far below market value. This makes buying apartment in Paraguay attractive for long-term holding.

5. Is rental income taxed for foreigners owning apartments in Paraguay?

Yes, but Paraguay uses a territorial tax system. Rental income generated inside Paraguay is taxable locally, usually at a low effective rate. Foreign income earned outside Paraguay is not taxed, which is a key advantage highlighted in foreigners buying apartment in Paraguay – legal & tax considerations.

6. Can foreigners open a bank account after buying an apartment in Paraguay?

Yes. Buying apartment in Paraguay often helps with bank account opening, especially if combined with residency. Banks may request proof of property ownership, source of funds, and basic KYC documents.

7. Is it safe to buy an apartment in Paraguay as a foreigner?

Yes — provided due diligence is done correctly. Key steps include:

Verifying clear title (Título de Propiedad)
Checking no liens or debts
Using a reputable notary (Escribano Público)
Ensuring proper registration

When done properly, foreigners buying apartment in Paraguay enjoy strong legal protection.

8. Can foreigners buy apartments off-plan in Paraguay?

Yes. Off-plan purchases are common in Asunción. Buying apartment in Paraguay off-plan often offers lower prices and payment plans. However, buyers should verify:

Developer track record
Land ownership status
Construction permits
Contract clauses and delivery timelines

9. Can I resell an apartment in Paraguay freely as a foreigner?

Yes. Foreigners buying apartment in Paraguay can freely resell the property at any time. Capital gains tax may apply, but rates are generally low and calculated on net profit, not gross value.

10. Does Paraguay have inheritance or wealth tax on apartments?

No. Paraguay does not impose a wealth tax, and inheritance taxes are either nonexistent or minimal depending on structure. This is one of the most overlooked legal and tax considerations for foreigners buying apartment in Paraguay.

11. Can I buy an apartment in Paraguay through a company?

Yes. Many investors choose to buy apartment in Paraguay via a local company for asset protection or planning purposes. This is legal and common, though it involves additional setup and compliance costs.

12. Are there restrictions on foreign currency payments when buying apartment in Paraguay?

No. Paraguay allows payments in USD or local currency (PYG). Funds can be transferred from abroad without capital controls, which simplifies transactions for foreigners.

13. Is buying apartment in Paraguay a good investment for foreigners?

For many investors, yes. Foreigners buying apartment in Paraguay benefit from:

Low entry prices
High rental yields in Asunción
Minimal taxes
Full ownership rights
Strong residency and diversification benefits

14. What are the biggest legal mistakes foreigners make when buying apartment in Paraguay?

Common mistakes include:

Skipping title verification
Using informal contracts
Not registering the deed
Buying without legal advice

Professional guidance eliminates most risks associated with buying apartment in Paraguay.

Need Help Buying Property in Paraguay?

At GetResidencyParaguay.com, we specialize in assisting foreign buyers – particularly from the EU and the United States – with safe, transparent, and efficient real estate purchases in Paraguay. Whether you’re looking for an apartment in Asunción, a rental investment, or development land, our bilingual team provides:

Property search and market insight
Legal due diligence and title verification
Buyer representation and contract negotiation
Closing coordination with trusted notaries and lawyers
Guidance on taxes, residency, and long-term strategy

We understand the needs of international investors and offer personalized, end-to-end support—from your first property tour to final registration.

📩 Contact us today to schedule a consultation or tell us about your goals:

Let’s make your real estate investment in Paraguay smooth, secure, and successful.

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