Complete Guide to Buying Real Estate in Paraguay

Paraguay offers one of South America's most accessible real estate markets for foreign buyers. This comprehensive guide covers everything you need to know about purchasing property in Paraguay.

Why Buy Real Estate in Paraguay?

Key Advantages

100% foreign ownership rights (except border zones)
Low property taxes (0.1% of cadastral value)
No restrictions on property types or quantity
Stable economy with consistent growth
Easy residency through property investment
High rental yields (8-15% annually)

Current Market Overview

Property Prices by Type

Residential Properties

Studio apartments: $40,000-80,000
2-bedroom apartments: $80,000-150,000
3-bedroom houses: $150,000-300,000
Luxury homes: $300,000-1,000,000+

Commercial Properties

Office spaces: $1,000-2,000/m²
Retail locations: $1,200-2,500/m²
Warehouses: $400-800/m²

Land

Urban lots: $100-500/m²
Suburban land: $20-100/m²
Agricultural: $1,000-5,000/hectare

Step-by-Step Buying Process

Step 1: Property Search (1-3 months)

Define requirements and budget
Research locations and neighborhoods
View properties with agents
Compare market prices

Step 2: Due Diligence (1-2 weeks)

Essential Checks: ✓ Title deed verification (Título de Propiedad) ✓ Property registry search ✓ Tax payment status ✓ Utility bill verification ✓ Building permits (for new construction) ✓ HOA status (if applicable)

Step 3: Offer and Negotiation (1 week)

Submit written offer through agent
Negotiate price and terms
Agree on payment schedule
Set closing date

Step 4: Purchase Agreement (1-2 days)

Boleto de Compraventa includes:

Property description
Purchase price and payment terms
Possession date
Penalty clauses
Both parties' obligations

Step 5: Payment and Closing (1-2 weeks)

Transfer funds (usually USD)
Sign deed at notary (Escritura Pública)
Register at Public Registry
Receive keys and possession

Legal Requirements

For Foreign Buyers

Valid passport
Paraguay tax ID (RUC) - obtainable in 1 day
Proof of funds
No criminal record (for residency)

Restricted Areas

Foreigners cannot own property within:

50km of international borders
Strategic military zones Note: Corporations can own in these areas

Costs and Taxes

Purchase Costs

Property price: Negotiated amount
Transfer tax: 1.5% of declared value
Notary fees: 0.5-1%
Registration: 0.3%
Legal fees: 1-2%
Real estate commission: 3-5% Total additional costs: 6-10% of purchase price

Ongoing Costs

Property tax: 0.1% cadastral value (very low)
Municipal taxes: $50-200/year
HOA fees: $50-300/month (if applicable)
Utilities: $100-300/month

Financing Options

Cash Purchase (Preferred)

70% of transactions are cash
USD widely accepted
Bank transfers common
Escrow services available

Local Financing

Available for residents
20-30% down payment
Interest rates: 9-12%
Terms: 10-20 years

Seller Financing

Common for land and development
30-50% down payment
Negotiable terms
6-10% interest typical

Best Locations to Buy

For Investment

Asunción - Capital appreciation
Ciudad del Este - Commercial opportunities
Encarnación - Tourism growth

For Lifestyle

San Bernardino - Lake resort living
Areguá - Artistic community
Villa Morra - Urban luxury

For Development

Luque - Airport proximity
Lambaré - Urban expansion
Mariano R. Alonso - Industrial growth

Property Types Available

Apartments

New Construction

Modern amenities
Building warranties
Payment plans available
Choose finishes

Resale Units

Immediate possession
Established buildings
Proven rental history
Room for negotiation

Houses

Gated Communities

Security and amenities
HOA management
Common areas
Social infrastructure

Individual Homes

More privacy
Customization potential
Land included
No HOA restrictions

Land

Residential Lots

Build to suit
Choose your builder
Investment potential
Flexible timeline

Agricultural Land

Income generation
Tax advantages
Residency qualification
Long-term appreciation

Common Pitfalls to Avoid

Documentation Issues

❌ Incomplete title chains ❌ Unregistered improvements ❌ Informal subdivisions ❌ Boundary disputes

Financial Mistakes

❌ Not budgeting for all costs ❌ Currency conversion losses ❌ Inadequate due diligence ❌ Overpaying due to lack of comps

Legal Problems

❌ Not using qualified lawyers ❌ Skipping title insurance ❌ Verbal agreements ❌ Not registering properly

Tips for Successful Purchase

Before Buying

Visit Paraguay multiple times
Rent before buying
Learn basic Spanish
Understand the culture
Build local network

During Purchase

Use reputable professionals
Document everything
Verify all claims
Negotiate firmly but fairly
Plan for contingencies

After Purchase

Register immediately
Keep all documentation
Pay taxes on time
Maintain property
Build community relationships

Residency Through Real Estate

Investment Requirements

$70,000 USD minimum investment
Can be property or business
Includes land and rural property

Benefits

Permanent residency in 3 years
Path to citizenship
Territorial tax system
Visa-free travel in Mercosur

Conclusion

Buying real estate in Paraguay offers excellent opportunities for investment and lifestyle enhancement. With proper preparation, professional guidance, and due diligence, foreign buyers can successfully navigate the purchase process and enjoy the benefits of property ownership in this emerging South American market.

The combination of low costs, minimal taxes, and strong property rights makes Paraguay an attractive destination for real estate investment. Whether seeking a retirement home, investment property, or development opportunity, Paraguay's real estate market provides options for every buyer.