How to invest in real estate in Paraguay

Why invest in Paraguay

Paraguay offers one of the lowest tax burdens in the region, real-estate deals frequently settled in US dollars, and above-average population growth for South America. Cities like Encarnación, Ciudad del Este, Asunción and Hernandarias show strong residential, retail and logistics demand.

For foreign investors, geographic proximity, air connectivity and a lower cost of living make Paraguay a competitive alternative to other regional property markets.

Can foreigners buy property?

Yes. Paraguayan law lets foreigners buy urban and rural real estate on essentially the same terms as nationals. Residency is not required to purchase, but you'll need a valid ID (passport or cedula). To register the property in your own name, a Paraguayan RUC or cedula is generally required.

Specific restrictions apply to rural land within the border strip, set out in laws 2532/2005 and 5896/2017. Our team reviews each case individually.

Currency: guarani and US dollar

The official currency is the guarani (PYG), but most real-estate transactions — especially lots, houses and apartments — are negotiated in US dollars (USD). USD payments are common and legally accepted.

For larger amounts, international wire transfers to a Paraguayan bank account are recommended, keeping documentation on the source of funds.

Taxes and closing costs

Paraguay has a lean tax structure for real estate. The main costs to budget for on a purchase are:

• VAT on new-build properties sold by developers: 5% on the transaction value.
• Public deed at a notary (escribanía): notary fees of roughly 1% to 2% of the property value.
• Annual Property Tax (Impuesto Inmobiliario): 1% of the fiscal valuation, charged by the municipality.
• Capital gains tax on resale: reduced rate, calculated on the actual gain.

Step-by-step purchase process

The process is straightforward but paperwork matters. In the deals we handle, we follow this path:

• Property selection and in-person or video visit.
• Offer and reservation with a deposit (typically 5% to 10%), via a private purchase agreement.
• Due diligence: title report (informe de condiciones de dominio), registry number, property tax up to date, no liens.
• Public deed at the notary, with payment of the balance.
• Registration at the Public Registry (Dirección General de los Registros Públicos), which formally transfers ownership.

How we can help

Manske Propiedades serves clients in English, Spanish and Portuguese, supporting investors from property selection all the way to the deed. We work with trusted notaries and can assist with opening a local bank account and obtaining a RUC/cedula when needed.