How to Buy Real Estate in Paraguay as a Foreigner

Over the past ten years, Paraguay’s economy has grown by an average of 3–5% annually, except during periods affected by drought and the pandemic. Public debt remains at approximately 35% of GDP—one of the lowest levels in South America. After the increases of recent years, inflation is gradually returning to the Central Bank’s target range of approximately 3.5–4%.

At the same time, the real estate market continues to develop. Over the past decade, housing prices in the most desirable districts of Asunción have increased by approximately 50–80%. In certain areas of the Central Department, prices have more than doubled due to infrastructure development and active residential construction.

The current average price of new housing is:

For comparison, similar properties in Montevideo, Santiago, or São Paulo may cost 1.5–3 times more.

The areas enjoying the greatest demand include Villa Morra, Recoleta, Carmelitas, Ycuá Satí, Luque, San Lorenzo, and San Bernardino. San Bernardino remains one of the country’s fastest-growing resort property markets.

Long-term rental yields are generally in the range of 5–8% per year, while commercial property may yield 7–10%. Actual returns always depend on the specific property, its location, and the quality of its management.

What May Happen to Paraguay’s Real Estate Market Next?

Most economists expect Paraguay’s economy to continue growing steadily in the coming years. The country continues to develop its road infrastructure, industry, logistics centers, and residential construction. Paraguay also continues to lag behind some neighboring countries in terms of overall economic development, while the arrival of foreign residents and businesses attracted by the favorable tax system has been increasing for several consecutive years.

This creates conditions for further growth in real estate values, although the pace is likely to be more moderate than in previous years.

The most promising property categories currently include:

The Three Most Expensive Mistakes Foreign Investors Make When Buying Real Estate in Paraguay

Purchasing real estate in Paraguay can be a sound investment when the capital meets three fundamental conditions:

However, most serious financial losses are caused not by changes in market prices but by mistakes made before the purchase agreement is signed. Foreign buyers who are accustomed to the procedures used in their home countries frequently underestimate the particular features of Paraguayan law and local market practice.

Below are three of the most common mistakes that may lead to years of litigation, substantial financial losses, or even the complete loss of the investment.

Mistake No. 1. Buying Property Without Comprehensive Legal Due Diligence and Relying Solely on the Notary

The most common mistake is assuming that it is sufficient to inspect the property, review the seller’s documents, and sign the agreement before a notary.

In practice, the legal history of a property may contain problems that cannot be identified without full due diligence.

For example, a property may be pledged to a bank, involved in litigation, or subject to unpaid taxes or utility charges. A land plot may have incorrect cadastral boundaries, while a house may contain unregistered extensions or alterations. Inheritance disputes may also arise, resulting in new claimants appearing several years after the transaction.

Foreign buyers often assume that if the seller has owned the property for many years, the documents must automatically be in order. In practice, this is not always the case.

Moreover, many local owners do not maintain a complete and properly updated document file. In some cases, the owner may possess little more than an old purchase agreement, while the transfer of title was never fully registered with the relevant authorities.

Mistake No. 2. Buying an Apartment in a Development Under Construction Without Checking the Developer

Buying at the construction stage often appears especially attractive. Developers offer lower launch prices, flexible payment schedules, and the promise of substantial appreciation after completion.

However, such projects may carry the highest investment risks. In Asunción, several major developers have failed to complete their projects, and in some cases construction never began.

Before signing an agreement, the buyer must investigate not only the property but also the development company.

The following questions should be checked:

A common mistake is purchasing solely on the basis of an attractive presentation, advertising brochure, or assurances from a sales manager. Such investments are currently popular, but they may expose the investor to the greatest risk.

Even where construction is visibly underway, this does not guarantee timely completion or the absence of future legal problems.

Mistake No. 3. Buying a Property Solely Because of Its Attractive Price

Paraguay’s real estate market is still relatively fragmented, and financially distressed sellers may occasionally offer genuinely attractive properties at favorable prices. However, a low price is not always an advantage for the investor.

The phrase “urgent sale” frequently becomes the decisive argument for a foreign buyer.

Real estate offered substantially below market value almost always requires additional investigation.

The low price may have an entirely legitimate explanation—for example, the seller may urgently need liquidity. Nevertheless, an attractive price may also conceal serious legal or technical problems.

Possible issues include:

Another common mistake is focusing exclusively on the price per square meter without evaluating the prospects of the surrounding area.

A cheap plot in an area without roads, utilities, or realistic development prospects may remain inexpensive for many years. This is particularly relevant in Paraguay. By contrast, a more expensive property in an actively developing district may appreciate substantially over the same period.

Government Authorities Involved in Paraguayan Real Estate Transactions: What Should Be Checked and Where?

In most cases, it is extremely difficult for a foreign buyer to check a selected property independently. However, the information below can be used to supervise the work of the notary, lawyer, or real estate agent.

This article is based on official information and refers to the principal authorities responsible for registering and regulating real estate transactions in Paraguay.

Dirección General de los Registros Públicos (DGRP) — General Directorate of Public Registries

The DGRP is Paraguay’s principal public property registry.

Its main functions include:

Servicio Nacional de Catastro (SNC) — National Cadastral Service

The SNC is responsible for cadastral registration of real estate.

The following details are checked:

Many discrepancies involving the actual boundaries of land plots and their correspondence with registered data are identified at this stage.

Municipalidad — The Relevant Municipality

Every property falls under the jurisdiction of a particular municipality.

The municipality is used to check:

The buyer must contact the municipality in which the property is physically located.

Escribano Público — Notary Public

Although a notary is not a government authority, the notary plays a central role in completing the transaction.

The notary:

Ministerio de Economía y Finanzas (MEF) — Ministry of Economy and Finance

Through its subordinate bodies, the MEF is involved in:

Dirección Nacional de Ingresos Tributarios (DNIT) — National Directorate of Tax Revenue

Instituto Nacional de Desarrollo Rural y de la Tierra (INDERT) — National Institute for Rural and Land Development

INDERT is relevant only to the purchase of certain agricultural land.

The following may be checked:

Ministerio del Ambiente y Desarrollo Sostenible (MADES) — Ministry of the Environment and Sustainable Development

A review by MADES is not required for every transaction.

It may be necessary when purchasing:

How Can a Foreign National Register Real Estate Ownership in Paraguay?

A foreign national may register ownership of real estate using a valid foreign passport. However, completing the transaction using a Paraguayan cédula is generally considered more reliable and convenient.

Those unfamiliar with the cédula and the practical benefits of Paraguayan residence can read our detailed guide: Paraguay temporary and permanent residence: the most up-to-date information.

The standard procedure for registering a real estate purchase in Paraguay is described below. It may be used as a practical transaction checklist.

Step 1. Preparing and Updating the Terms of the Agreement

The parties agree on:

In practice, negotiating access to the seller’s property documents can be difficult. For this reason, the owner often requests a preliminary agreement, a letter of intent, or a draft contrato de compraventa granting the buyer time to complete the necessary checks.

Step 2. Paying a Deposit and Signing the Contrato de Compraventa

The parties sign the preliminary purchase agreement before a notary.

The notary:

Step 3. Property Due Diligence

Before the final notarial deed is signed, comprehensive legal due diligence should be completed.

The review includes:

Step 4. Checking the Seller

The following matters should be verified:

Step 5. Signing the Notarial Deed and Paying the Remaining Purchase Price

The parties sign the final documents before the notary.

The notary:

Step 6. Paying Government Fees and Taxes

The transaction may involve:

The amount depends on the property value and the structure of the transaction.

For example, when purchasing a land plot valued at approximately 25,000–50,000 USD, additional expenses for taxes, duties, registration, and related charges may reach approximately 8–10% of the property price.

Step 7. Submitting the Documents to the DGRP

The notary or an authorized representative submits the documents to the Dirección General de los Registros Públicos for registration of the transfer of ownership.

Step 8. Registration Review

This is usually the longest stage of the transaction. It may take two to three months. Where documents were prepared incorrectly or unprofessionally, the process may take significantly longer and, in difficult cases, continue for years.

The registrar checks:

Where deficiencies are found, the registrar may issue a request requiring them to be corrected before the ownership entry is made.

Step 9. Recording the New Owner in the Public Registry

Once the review has been successfully completed, the new owner is entered in the public property registry.

Final Transaction Documents and What They Mean

After the transaction has been completed, the buyer should normally receive the following documents:

For the purchase of land—the most common type of property transaction in an agricultural country—the properly completed document package should include the following.

1. Plano Georreferenciado de Inmueble—Georeferenced Cadastral Plan of the Land Plot

This is the official plan of the property, prepared by a licensed surveyor and registered with the National Cadastral Service.

It:

2. Escritura Pública de Compraventa—Notarial Real Estate Purchase and Sale Deed

This is the principal legal document of the transaction, certified by a notary.

It contains:

The deed confirms that the parties have entered into the transaction and serves as the basis for registering the new owner in the Public Property Registry.

3. Liquidación de Inscripciones—Receipt for Payment of the Government Registration Fee

This document confirms payment of the government fee for registration of the transaction.

It:

4. Factura del Impuesto a la Transferencia—Real Estate Transfer Tax Document

This document confirms the assessment and payment of the tax arising from the sale of real estate.

It:

5. Comprobante de Pago Municipal—Confirmation of Payment of Municipal Taxes and Charges

This document is issued by the municipality and confirms that required local payments have been made or that no outstanding debt exists.

It usually covers:

It confirms the absence of outstanding municipal liabilities and reduces the risk that unpaid obligations will pass to the new owner.

6. Toma de Razón—Transferencia de Inmueble: Certificate of Registration of the Transfer of Ownership

This is the final document issued by the Public Property Registry.

Once it has been issued, the new owner is officially recorded in the public registry.

It:

7. Hoja de Seguridad Notarial—Notarial Security Sheet

This is a special protected form issued under the authority of the Supreme Court of Paraguay and used for the official notarial copy of the agreement.

It:

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Together, we will make your property purchase in Paraguay safer, clearer, and legally secure.