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How to buy a house in Paraguay as an expat
Learn how to buy a house in Paraguay: what to do, how much tax to pay, approximate prices, and requirements.
Buying a home in Paraguay can be a great option if the country’s lifestyle and benefits match what you’re looking for. It has become one of the most attractive places in South America for real estate investment, thanks to its stable economy, low taxes, affordable living costs, and welcoming approach to foreigners. Because of this, more investors and people looking to relocate are choosing Paraguay as a place to live and invest.
However, as in any country, buying property means dealing with legal, tax, and financial processes that can be complicated if you’re not familiar with them beforehand.
This guide covers everything you need to know before buying a home in Paraguay, including legal requirements for foreigners, property prices, taxes, payment options, and the buying process step by step. If you’re thinking about investing or relocating, keep reading!
Requirements for foreigners to buy a house in Paraguay
Can foreigners buy property in Paraguay?
Yes. Paraguay makes it relatively easy for foreigners to buy property. The country is known for being open to international real estate investment, allowing non-residents to purchase homes with essentially the same rights as locals, without needing permanent residency or long-term residence in the country.
Restricted areas and legal limits
There is one important exception near the borders. Foreigners can’t directly buy property within 50 km of Paraguay’s international borders. However, this restriction can be legally bypassed by creating a Paraguayan company, since companies registered in Paraguay are allowed to buy property in those border areas.
There is no limit on the number of properties a foreigner may own, nor are there any restrictions based on the type of property (residential, commercial, rural).
Type of property being purchased
In Paraguay, when you buy property, you own it fully. There is no concession or leasehold system as in some other countries. Once purchased, the owner has absolute rights to sell, rent, mortgage, or pass the property on through inheritance.
Documents required for the purchase
To purchase a property in Paraguay as a foreigner, you will need:
- Valid passport
- Paraguayan ID card (optional but recommended if you are a resident)
- RUC (Single Taxpayer Registry), equivalent to a tax ID number, which can be obtained by foreign nationals
- Proof of funds’ origin (especially for purchases exceeding certain amounts)
- Bank details in the case of local financing
Is a lawyer or notary required?
Yes. In Paraguay, property transfers have to be done through a notary public. It’s also highly recommended to work with a local real estate lawyer to make sure everything is in order, review the contracts, and help with registering the property.
Purchasing through a company or with a local partner
Forming a company in Paraguay, such as a corporation (SA) or a limited liability company (SRL), is a common route for foreign investors. It can help with buying in border areas, offer tax advantages, and make it easier to manage assets. The process is fairly simple and doesn’t require having local shareholders.
Legal risks to consider
The main risks include properties with undisclosed mortgages, unresolved inheritance issues, double ownership claims, or properties that aren’t properly registered. That’s why doing a thorough legal check before buying is essential.
How much does a house cost in Paraguay?
Prices by area and city
Property prices in Paraguay differ a lot depending on the location. In Asunción, the capital, sought-after residential areas like Carmelitas, Villa Morra, and around Paseo La Galería usually go from about $1,200 to $2,500 per square meter. In more middle-income neighborhoods like Mburucuyá or San Cristóbal, prices tend to be lower, roughly $700 to $1,200 per square meter.
In nearby cities like Lambaré, San Lorenzo, and Luque, prices are lower, usually between $500 and $900 per square meter. They’re a good option if you want more value for your money.
In Ciudad del Este, the country’s second-largest city and a major commercial hub, prices vary a lot by neighborhood, with central areas typically ranging from about $600 to $1,500 per square meter. In rural parts of the country, you can even find basic homes with large plots of land starting around $30,000.
Factors affecting price
The price of a property in Paraguay mainly depends on things like how close it is to shopping centers, hospitals, and schools, the quality of the roads and infrastructure, the safety of the area, and the general socioeconomic level of the neighborhood. Homes with features like a pool, private security, or those in gated communities tend to be much more expensive.
Real-life examples of prices
- 70 m² apartment in Villa Morra (Asunción): Between $90,000 and $150,000
- 150 m² house in San Lorenzo: Between $80,000 and $130,000
- House with land in a rural area of the Central Department: Starting at $40,000
- House in a residential neighborhood in Encarnación: Between $60,000 and $120,000
Annual maintenance costs
Maintenance costs in Paraguay are relatively low compared to many other countries. For a medium-sized home, utilities like water, electricity, and gas usually run between $100 and $200 per month. If the property is in a private condominium, monthly fees typically range from $100 to $400, depending on the services included.
Taxes on a house in Paraguay
Paraguay has one of the most favorable tax structures on the continent, which is a major draw for foreign investors.
Taxes when buying
The main tax when buying property is the Real Estate Transfer Tax, which is 3% of the declared property value. It’s calculated based on either the sale price or the tax-assessed value, whichever is higher. The seller usually pays it, but it can be negotiated between both parties.
There are also notary fees, usually around 1% to 2% of the transaction value, plus registration costs in the Property Registry, which are typically between 0.5% and 1%.
Annual or recurring taxes
The main recurring tax on property is the Real Estate Tax. It’s paid yearly to the local municipality and is based on the property’s official assessed value, which is usually lower than market value. The rate is typically between 1% and 1.5% of that assessed value.
Taxes on sales
If you make a profit from selling a property, you may have to pay Personal Income Tax (IRP), or corporate income tax if the property is owned through a company. The standard IRP rate is 10% on the net profit.
Difference between residents and non-residents
Non-residents are subject to a withholding tax of 30% applied to 30% of the estimated gain on the sale, which effectively comes out to about 9%. This can be adjusted if proper accounting documents are provided to show the actual profit.
Double taxation treaties
Paraguay has only a few double tax treaties. It’s a good idea to check with a tax advisor if your country has one, so you don’t get taxed twice on the same income.
Steps for buying a house in Paraguay
1. Searching for properties
The most commonly used real estate websites in Paraguay are Infocasas.com.py, Clasificados Paraguay, and Inmueblespy. There are also local agencies that specialize in helping foreign buyers. In addition, local contacts and expat groups on social media can be a very useful source of information.
2. Legal verification of the property
Before moving forward with any deal, the lawyer should request the property deed and check its status at the Public Registry in Asunción or the relevant land registry office. This is to confirm there are no mortgages, liens, legal disputes, or ownership issues attached to the property.
3. Negotiation and initial agreement
Once you’ve chosen a property, you negotiate the price directly with the seller or through the real estate agent. In Paraguay, it’s common to negotiate the price down by around 5% to 15%, especially for properties that have been on the market for a while.
4. Preliminary agreement and down payment
A preliminary purchase agreement is signed, setting out the agreed terms. At this stage, a deposit of about 10% to 20% of the total price is usually paid as a commitment. If the buyer pulls out, they lose the deposit; if the seller backs out, they must return double the amount.
5. Legal review prior to the deed
The lawyer double-checks the property’s legal status, makes sure local taxes are up to date, and confirms there are no outstanding debts with the municipality.
6. Signing of the deed and registration
The final deed is signed before a notary public. After that, the notary handles the registration with the Property Registry, which usually takes about 2 to 6 weeks. Once it’s registered, the buyer receives the title in their name.
Estimated total duration of the process: 30 to 90 days from the signing of the preliminary contract.
Common mistakes
- Failing to verify the property’s title status before paying the deposit
- Relying on private contracts that are not notarized
- Not having your own legal representation
- Paying in cash without documentation proving the source of the funds
How to pay for a house in Paraguay?
Purchases can be made in cash (US dollars or guaraníes), via international bank transfer, or through a local bank account. Paraguay doesn’t have strict restrictions on foreign money coming in, but banks will ask for proof of where the funds come from for larger amounts.
Mortgages for foreigners
Yes, foreigners can get mortgages in Paraguay, but access is more limited than for locals. Banks usually require permanent residency, a local credit history, and a down payment of at least 30%. Interest rates range from about 10% to 18% per year in guaraníes, and around 6% to 10% in US dollars.
Financing options
Many private sellers and real estate developers offer direct financing, especially for new-build projects. This is quite common and the terms are often flexible and open to negotiation.
Risks associated with international transfers
It’s important to use traceable payment methods and keep receipts for every transaction. Exchange rates can make a big difference in large deals, so it’s worth looking into the best conversion options in advance.
Tips before buying a house in Paraguay
Stay connected throughout the process with Holafly’s monthly plans
From the moment you start looking for properties until you sign and move in, you need a stable internet connection with no surprises. Holafly’s monthly plans, with the Always On feature, help ensure you stay connected even if your data runs out. That’s especially important when you’re dealing with lawyers, notaries, or your bank from abroad.
If you’re traveling to Paraguay for a short time to view properties, Holafly eSIMs for Paraguay are a convenient and cost-effective option. You can activate them on your phone before you fly, so you’re connected as soon as you land.
- Hire an independent local attorney: Don’t rely only on the seller’s agency lawyer. You should have your own legal representative to look out solely for your interests.
- Research the area before committing: Visit the neighborhood at different times of day, and check how easy it is to get to transport, shops, hospitals, and schools. It also helps to talk to local residents about safety and the quality of services in the area.
- Assess the market well in advance: Paraguay’s property market is still developing, so there are good deals but also overpriced areas. Compare a few similar properties before deciding.
- Be on the lookout for signs of fraud: Be cautious with prices that are far below market value, sellers who avoid showing original documents, or anyone pushing for a quick sale. Always ask for original paperwork and verify everything with the public registry.
- Consider renting as a first step: If you’re not sure which area you want to live in, renting for six months is a good way to get to know the country, the market, and the different neighborhoods before making a big investment.
Frequently asked questions about buying a house in Paraguay
No. Foreigners can buy property in Paraguay without residency or a special visa. All you need is a passport and, to complete the purchase, a local tax ID number (RUC).
Not directly as an individual. However, foreign investors can do so through a legally established Paraguayan company, which is a common practice.
From signing the preliminary agreement to the final registration in the Property Registry, the process usually takes between 30 and 90 days, depending on how complex the transaction is and the notary’s availability.
Yes, but the requirements are stricter. Banks usually require permanent residency, local credit history, and at least a 30% down payment. That’s why many foreign buyers pay cash or use seller financing instead.
In Paraguay, if the seller breaches the preliminary purchase agreement, they must return double the deposit received. The buyer may also take legal action to enforce the contract.
Yes. Non-residents are subject to a withholding tax when selling a property. The effective rate is usually around 9% of the profit, although it can be adjusted if accounting documents are provided to prove the actual gain made on the sale.
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