Frequently Asked Questions

Yes, foreigners have the same property ownership rights as Paraguayan citizens. There are no restrictions on foreign ownership of real estate, except for properties within 50km of international borders, which require special authorization.

The process typically involves: 1) Making an offer and signing a purchase agreement (boleto de compraventa), 2) Paying a deposit (usually 10-30%), 3) Due diligence period for title verification, 4) Final payment and property transfer at a notary public (escribanía), 5) Registration of the deed at the Public Registry. The entire process usually takes 30-60 days.

Typical costs include: Property transfer tax (1% of declared value), Notary fees (1-2%), Registration fees (0.5-1%), Legal fees if using a lawyer (1-2%), Real estate commission (3-5% typically paid by seller). Total closing costs are usually 3-5% of the purchase price.

While not legally required, it's highly recommended to use a lawyer or notary public (escribano) to ensure proper due diligence, verify clean title, and handle the legal documentation. They can also help navigate the process if you don't speak Spanish.

Yes, but it's challenging. Most Paraguayan banks require residency and local income proof. Interest rates are typically 10-15% annually. Many foreign buyers purchase with cash or arrange financing in their home country. Some developers offer payment plans for off-plan properties.

Rental yields vary by location and property type. In Asunción, expect 5-8% gross annual yields for residential properties. Commercial properties can yield 8-12%. Tourist areas like Encarnación may see seasonal variations. Long-term rentals typically offer more stable returns than short-term rentals.

Yes, but they're relatively low. Annual property tax (impuesto inmobiliario) is typically 0.5-1% of the fiscal value, which is usually much lower than market value. Luxury properties may have slightly higher rates. There's also a municipal tax that varies by location.

Both USD and Paraguayan Guaraní (PYG) are commonly used. High-end properties and those marketed to international buyers are often priced in USD. Rental prices may be quoted in either currency. It's important to clarify the currency when negotiating.

Foreign buyers typically need: Valid passport, Tax ID from your home country or Paraguayan RUC (tax number), Proof of funds, Power of attorney if buying remotely. For residency applications, additional documents may be required including police clearance and birth certificates.

Title verification is done through the Public Registry (Registro Público). A lawyer or notary will check for: Current ownership, Any liens or encumbrances, Property boundaries and measurements, Tax payment status, Any legal disputes. This due diligence is crucial before purchasing.

Yes, you can purchase property without being in Paraguay by granting power of attorney to a trusted representative, lawyer, or notary. The power of attorney must be properly authenticated (apostilled or consularized) in your home country. Video calls for property viewing are common.

It's the preliminary purchase agreement that outlines the terms of sale, including price, payment schedule, and conditions. Once signed and a deposit is paid, both parties are legally bound to complete the transaction. Breaking the agreement can result in losing the deposit or paying penalties.

Property ownership alone doesn't grant residency, but it can support your residency application. Paraguay offers several residency options including investor residency (requiring approximately $70,000 USD investment), pensioner residency, and temporary residency. Property ownership demonstrates ties to the country.

Benefits include: Territorial tax system (no tax on foreign income), Path to citizenship after 3 years, No minimum stay requirements for permanent residents, Access to Mercosur countries, Low cost of living, Growing expat community, and business opportunities.

Popular expat areas include: Asunción (Villa Morra, Carmelitas neighborhoods), Encarnación (beach town near Argentina), San Bernardino (lakeside resort town), Areguá (artistic community near the capital), Ciudad del Este (commercial hub). Each offers different lifestyles and price points.

Paraguay offers one of the lowest costs of living in South America. Monthly expenses for a comfortable lifestyle range from $1,000-2,500 USD depending on location and lifestyle. Asunción is more expensive than smaller cities. Healthcare, food, and services are particularly affordable.

If you're not residing in Paraguay or own multiple properties, a management company is recommended. They typically charge 8-10% of rental income and handle tenant screening, rent collection, maintenance, and legal compliance. Essential for absentee landlords.

Paraguayan law tends to favor property owners over tenants. Standard lease terms are 1-2 years. Eviction for non-payment can be processed relatively quickly (2-3 months). Landlords can require 1-2 months deposit plus first month's rent. Rent increases are negotiable at lease renewal.

Yes, short-term rentals including Airbnb are legal in Paraguay. Some buildings may have restrictions, so check condo rules. Tourist areas like Asunción and Encarnación have growing short-term rental markets. Consider local management for cleaning and guest services.

Options include: Hiring a property management company, Employing a trusted local caretaker, Using apps and services for remote monitoring, Establishing relationships with local contractors, Regular property inspections (quarterly recommended). Budget 1-2% of property value annually for maintenance.

Paraguay has a stable democracy and growing economy. Property rights are well-protected by law. Main risks are economic (inflation, currency fluctuation) rather than political. Crime exists but is generally lower than in neighboring countries. Gated communities offer additional security.

Paraguay has minimal natural disaster risk. No earthquakes, hurricanes, or volcanic activity. Main concern is occasional flooding in low-lying areas during rainy season (October-April). Properties in elevated areas of Asunción and other cities are generally safe from flooding.

Utilities in urban areas are generally reliable. Electricity supply is stable (Paraguay exports hydroelectric power). Water quality varies by area - many properties have filtration systems. Internet infrastructure is improving rapidly with fiber optic available in major cities.

Property insurance is available but not mandatory. Coverage typically includes fire, theft, and natural disasters. Annual premiums are usually 0.3-0.5% of property value. International insurance companies operate in Paraguay. Ensure coverage includes liability protection for rentals.