Buying property in Paraguay as a foreigner — Requirements and steps

Yes: a foreigner can buy property in Paraguay in their own name, without residency and without setting up a company. No visa, no local partner, no address in the country. It is one of the reasons investors from Spain, Brazil and Argentina look at Asunción: the legal framework treats a foreign buyer exactly like a Paraguayan one.

This guide covers the real requirements, the full process, the costs almost nobody mentions and how the transaction is closed without travelling. It is written from practice: it is what we explain every week to buyers in Spain and Brazil.

What does Paraguayan law say about foreign buyers?

Paraguay has no special prior-authorisation regime for a foreigner acquiring urban property. Title is registered directly in the individual's name, using their passport, and grants the same rights as a national: you can sell, rent out, pass on by inheritance or mortgage without additional restrictions.

The only relevant limitation applies to rural property located in the border security zone (a 50 km strip from the border), where restrictions do exist for foreigners from neighbouring countries. It does not apply to urban apartments or houses, which is what 99% of investors buy. An apartment in Asunción, Luque or Lambaré falls entirely outside that restriction.

Concrete requirements

• Valid passport (or Mercosur ID if you are from Brazil, Argentina, Uruguay or Bolivia).
• Provable funds for the transaction. International transfers are ordinary banking operations, but the Paraguayan bank will ask for evidence of the source of funds under anti-money-laundering rules. Having the sale receipt, statement or declaration that justifies the money to hand avoids delays.
• Tax ID (RUC): not required to buy. It is worth obtaining if you plan to rent the unit out and invoice the income.

No residency, investor visa or local bank account is required to complete the deed. A local account becomes useful later, if you will be collecting rent.

The process, step by step

1. Choosing the unit. We prepare a proposal with prices, a payment plan, a comparison across projects and a rental projection if the goal is to let.
2. Reservation. A small amount locks the price and the unit, typically for 15 to 30 days. It is the step that stops someone else taking the unit while you gather documents.
3. Prior checks. Before signing, we verify the property is free of encumbrances, that the developer's building permits are in order and that the land is correctly registered. At Rootgold we only work with vetted developers, but this check is run on every transaction regardless.
4. Contract. A purchase agreement or commitment with the developer. It can be signed in person, by power of attorney granted to a third party, or remotely with certification.
5. Payments. Down payment (usually around 20%) plus monthly instalments until handover. Financed directly by the developer, with no bank and no credit scoring.
6. Deed. Once payment is complete, the public deed in your name before a notary, registered at the General Directorate of Public Registries. That is the moment the property legally becomes yours.

Real transaction costs (beyond the price)

This is the part usually missing from listings, and the one that generates the most questions. Budget, on top of the list price:

• Deed costs and notary fees: calculated on the transaction value and among the lowest in the region.
• Registration at the Public Registry: an administrative fee.
• Annual property tax: paid to the municipality and notably low compared with Spain, Brazil or the UK.
• Building fees: these apply from handover of the unit, not during construction.
• International transfer fee: depends on your home bank.

As a practical reference: closing costs in Paraguay tend to sit well below what a European or Brazilian buyer is used to paying at home. Ask us for the exact breakdown on the unit you are interested in before reserving — we send it in writing.

Taxes: the Paraguayan scheme

Paraguay has one of the simplest tax systems in Latin America, known as the "triple 10": VAT, corporate income and personal income all sit around 10%.

For a foreign investor, what matters:

• There is no wealth tax. You pay nothing for holding the property beyond the municipal property tax.
• The annual property tax is low in comparative terms.
• Rental income is taxed under the personal income regime, at moderate rates.
• Paraguay applies territorial source taxation: in general only income generated inside the country is taxed.

Important: taxation in your country of residence is a separate matter. If you live in Spain, Brazil or the US, you will likely have to declare foreign holdings under local rules. Consult a tax adviser in your own country before closing — we handle the Paraguayan side, we do not replace that analysis.

Can it all be done remotely?

Yes, and it is how a good share of our transactions with overseas buyers close. The usual setup:

1. A video-call tour of the project and the show unit, with an advisor on site. With live translation if needed.
2. Digital documentation: floor plans, construction specifications, build progress and a price comparison by email.
3. A special power of attorney granted at the Paraguayan consulate in your city, or before a local notary with a Hague apostille, so a representative can sign on your behalf.
4. International transfer to the developer's account, with proof of payment.
5. Monthly progress updates over WhatsApp, with real photographs.

The apostille is the step that raises the most questions: it is an international seal that validates your document before Paraguayan authorities. In Spain it is issued by the Ministry of Justice or the Notaries' Association; in Brazil, by authorised cartórios; in the UK and the US, by the relevant government office.

Common mistakes worth avoiding

• Buying without vetting the developer. Off-plan, you are buying a promise of delivery. A track record of completed, on-time projects matters more than the price.
• Not asking for the closing-cost breakdown before reserving, and running into an unbudgeted extra later.
• Signing without reviewing the instalment adjustment clause. Ask whether the balance is indexed and to what.
• Assuming rent collects itself. If you buy for income while living abroad, you need local management; settle that before buying, not after.
• Choosing on price alone. The cheapest studio is not necessarily the one that rents best: location and local demand weigh more than square metres.

Why Asunción, and why now?

Three reasons buyers who have already closed with us keep repeating: low entry prices compared with other capitals in the region, financing directly from the developer without a bank, and a simple, stable tax framework. On top of that, the rental market in central Asunción is driven by real demand from professionals and students, not purely speculative.

It is not a risk-free market — none is. Buying off-plan means waiting for delivery and trusting whoever builds. That is why vetting the developer is the single most important decision in the process, more so than choosing the unit.

Next step

If you are considering buying from abroad, write to us with your budget and whether you are after a home or rental income. We will send a concrete comparison of available units, with prices, payment plans and the closing-cost breakdown — no obligation, in your language.