Buying Property in Paraguay as a Foreigner: Complete Guide

Foreigners can legally purchase property in Paraguay with no restrictions in most areas — no minimum investment, no approval requirements, and no restrictions on repatriating sale proceeds. This makes Paraguay one of the more accessible property markets in South America.

Can Foreigners Buy Property?

Yes. Paraguayan law permits foreign nationals and foreign residents to purchase property with the same rights as Paraguayan citizens, with one important exception:

The 50km border restriction: Foreign nationals are prohibited from purchasing agricultural land within 50km of Paraguay's international borders. This restriction applies specifically to agricultural land — urban residential and commercial property near the border is not restricted.

For buyers looking at agricultural investment or rural land, the 50km restriction requires careful mapping of your target property against the border.

The Property Purchase Process

Step 1 — Property search and selection: Work with a local real estate agent (inmobiliaria) in Asuncion or your target area. The Paraguayan property market does not have a centralized MLS system — most listings are through individual agencies.

Step 2 — Title verification: Before committing to a purchase, have a Paraguayan lawyer verify the title (escritura) through the Registro de la Propiedad (Property Registry). Verify that:

• The seller is the legal owner
• The property has no liens, mortgages, or encumbrances
• Tax payments (IBI property tax) are current
• The property boundaries match the cadastral record (Catastro)

Step 3 — Offer and purchase agreement (boleto de compraventa): A preliminary purchase agreement is typically signed with a deposit (usually 10–20% of the purchase price).

Step 4 — Notarial deed (escritura pública): The transfer of ownership is formalized through a notarized escritura pública, which is then registered with the Registro de la Propiedad.

Costs of Buying Property

In addition to the purchase price, buyers should budget for:

• Transfer tax (Impuesto de Transferencia): Typically 2–3% of the declared property value
• Notary fees: Approximately 1–2% of the property value
• Registration fees: Approximately 0.5–1%
• Real estate agent commission: Typically 3–5% (split between buyer and seller in some transactions)

Total acquisition costs: budget approximately 5–8% on top of the purchase price.

Financing and Currency

Most property transactions in Paraguay are conducted in US Dollars (USD) for investment property and in Guaraní for lower-priced local market transactions.

Mortgage financing from Paraguayan banks is available to legal residents, though terms and rates differ from US or European mortgage markets. Most foreign buyers purchase with cash or foreign financing.

Property Tax

Paraguay's annual property tax (IBI — Impuesto Inmobiliario) is very low — typically 1% of the official cadastral value, which is often below market value. Annual property holding costs are significantly lower than in most countries.

View our residency packages — establishing legal residency before purchasing property simplifies banking, the signing process, and tax registration.