Countries › Paraguay › Guide › 14. Disputes › Courts, arbitration and enforcement in Paraguay: the 2025 arbitration law, foreign awards and judgments, the New York Convention and ICSID

Courts, arbitration and enforcement in Paraguay: the 2025 arbitration law, foreign awards and judgments, the New York Convention and ICSID

Argentina. For full detail on Argentina, go to The Argentine Thread.

Last verified: 2026-10-28 · Status: Changing

Paraguay replaced its 2002 arbitration law with Ley 7561/2025, a statute published on 23 December 2025 that bars courts from suspending arbitrations, sends annulment and foreign award recognition straight to the Asunción civil and commercial Court of Appeal, and lets foreign parties waive annulment altogether. Foreign awards are enforced under the New York Convention (in force for Paraguay since 6 January 1998, no reservations), the Mercosur and Inter American instruments or, failing a treaty, the same law; Paraguay has been an ICSID Contracting State since 6 February 1983. Foreign court judgments need exequatur under the Código Procesal Civil, Paraguayan courts cannot accept a contractual choice of foreign courts outside special laws, and the loser pays costs, with lawyer fees set by statute at 5 to 20 percent of the amount at stake in first instance.

USD figures use PYG 5,847.90 per US dollar, the Banco Central del Paraguay reference quotation for 27 October 2026 (latest published planilla on the verification date). Conversions are for orientation only.

Key facts

Arbitration statute	Ley 7561/2025 (promulgated and published 23 December 2025; repealed Ley 1879/2002 except mediation) Ley 7561/2025 art. 71, as of 2026-10-28 · in force
Default number of arbitrators	3 arbitratorsLey 7561/2025 art. 15, as of 2026-10-28 · in force
Deadline to seek annulment of an international award (domestic: 15)	25 business daysLey 7561/2025 art. 54, as of 2026-10-28 · in force
Court hearing annulment actions	Tribunal de Apelación en lo Civil y Comercial de la Capital (single instance, no appeal) Ley 7561/2025 art. 10, 52, 55, as of 2026-10-28 · in force
Parties may waive annulment	Yes, if no party is Paraguayan or domiciled, resident or principally active in Paraguay Ley 7561/2025 art. 53, as of 2026-10-28 · in force
Arbitral tribunal may order interim measures	Yes; courts may also grant measures before the arbitration starts Ley 7561/2025 art. 14, 25, 26, as of 2026-10-28 · in force
State entities may arbitrate contract disputes	Yes, unless exclusively public law; arbitration at law and public Ley 7561/2025 art. 2, as of 2026-10-28 · in force
Court recognizing foreign arbitral awards	Tribunal de Apelación en lo Civil y Comercial de la Capital (decision not appealable) Ley 7561/2025 art. 10, 63, as of 2026-10-28 · in force
Party to the New York Convention	Yes Ley 948/1996, as of 2026-10-28 · in force
New York Convention in force for Paraguay	1998-01-06 dateLey 948/1996; accession 8 October 1997, as of 2026-10-28 · in force
New York Convention entry into force	1998-01-06 dateLey 948/1996, as of 2026-10-28 · in force
New York Convention reservations	None Ley 948/1996, as of 2026-10-28 · in force
ICSID Contracting State	Yes, in force since 6 February 1983 ICSID/3 (17 July 2026), as of 2026-10-28 · in force
ICSID Convention in force for Paraguay	1983-02-06 dateICSID/3 (17 July 2026), as of 2026-10-28 · in force
Court granting exequatur of foreign judgments	Juez de Primera Instancia en lo Civil y Comercial (on duty) Código Procesal Civil art. 533, as of 2026-10-28 · in force
Reciprocity required for foreign judgments	Not listed: treaty first, otherwise the seven conditions of art. 532 Código Procesal Civil art. 532, as of 2026-10-28 · in force
Choice of foreign courts enforceable against Paraguayan courts	No, except under special laws Código Procesal Civil art. 3, as of 2026-10-28 · in force
Time to raise defences after attachment in execution of a judgment	3 daysCódigo Procesal Civil art. 525, as of 2026-10-28 · in force
Loser pays the winner's costs	Yes, unless the judge exempts with reasons Código Procesal Civil art. 192, 193, as of 2026-10-28 · in force
Case lapses for inactivity (caducidad de instancia)	6 monthsCódigo Procesal Civil art. 172, as of 2026-10-28 · in force
Statutory first instance lawyer fee range	5 to 20 %Ley 1376/1988 art. 32, as of 2026-10-28 · in force
Original credit instrument must be deposited in executive suits	Yes, once the Supreme Court Acordada is issued Ley 7663/2026 art. 1, 7, as of 2026-10-28 · pending
BCP reference rate used for conversions	5847.90 PYG per USDBCP planilla 27 October 2026, as of 2026-10-27 · in force

The rule

1. Scope and arbitrability under the new law. Ley 7561/2025 governs private domestic and international arbitration seated in Paraguay, subject to ratified treaties; its rules on the arbitration agreement, referral by courts, interim measures and recognition of foreign awards (art. 11 to 14, 25, 26 and 59 to 63) also apply when the seat is abroad. Any patrimonial matter that can be settled may be arbitrated; individual employment disputes may not. State bodies, municipalities, companies with state shareholdings and binational entities may arbitrate their contracts unless the matter is governed exclusively by public law; such arbitrations must be decided at law and are public, and where a contract with an arbitration clause is terminated by administrative act for the contractor's breach, the dispute goes to the arbitral tribunal, not to the civil or administrative courts. The agreement must be in writing, which includes electronic messages and a reference to a document containing the clause; for international arbitration it is valid if it satisfies the law chosen by the parties, the law governing the merits or Paraguayan law. In case of doubt the law is read in favour of arbitration. A court seized despite an arbitration agreement must refer the parties to arbitration on the mere existence of the agreement unless it is clearly and manifestly void, and the tribunal may continue and even render its award meanwhile. Ordinary courts are expressly forbidden from suspending an arbitration by injunction, amparo or any other measure; doing so is misconduct of the judge. Without agreement there are three arbitrators (an even number agreed is reduced to the next lower odd number); if a party or the two co arbitrators fail to appoint within 30 days, the civil and commercial judge appoints within 7 days, with no appeal. Nationality and domicile are no bar to serving as arbitrator, and foreign arbitrators in Paraguayan seated cases obtain temporary residence automatically and free of charge for 3 years.
Cost to do it: No state filing fee is set by the law. Arbitrators' fees must be reasonable in light of the amount, complexity and time spent and are fixed by the tribunal itself, each arbitrator separately (art. 65); each side deposits an equal advance on costs, and if deposits are not paid within 30 days of the request the tribunal may suspend or end the case (art. 67). Institutional fees apply where an institution administers the case.
Example: A Paraguayan distributor and a foreign supplier with a clause providing for two arbitrators get a tribunal of one; with no clause on number, three. If the respondent ignores a request to appoint for 30 days, the claimant asks the civil and commercial judge, who must appoint within 7 days. / For a US$1,000,000 (PYG 5,847,900,000) supply dispute, the arbitration may run while the respondent's court action is pending; the court must refer the case to arbitration unless the clause is manifestly void.Ley Nº 7561/2025, De Arbitraje, Art. 1, 2, 5, 9, 11, 14, 15, 16 and 69, 2025-12-23 official text · verified 2026-10-28 · changed: Ley 7561/2025, promulgated and published on 23 December 2025, repealed Ley 1879/2002 on arbitration and mediation except its mediation articles 53 to 67; Ley 1879 is now called simply the mediation law. Arbitrations in which the respondent had received the request before the new law took effect stay under Ley 1879, but awards rendered after it follow the new annulment and enforcement regime, and recognition proceedings for foreign awards filed earlier continue under Ley 1879 (art. 70 and 71).

2. Challenging an award: annulment only, short deadlines and an opt out for foreigners. An award is final, unappealable and binding from notification; if it sets no deadline, it must be complied with within 20 days, after which enforcement may be sought. The only remedy is an action for annulment before the Tribunal de Apelación en lo Civil y Comercial of the Capital, on closed, narrowly read grounds: incapacity or invalid agreement, lack of proper notice or inability to present one's case, irregular composition or procedure, excess of mandate, non arbitrability, breach of Paraguayan public policy (international public policy for international cases), and late award only where the parties expressly made lateness a ground. The court may not review the merits, the reasoning or the interpretation of the tribunal. Procedural grounds are lost unless they were raised before the tribunal in time (5 business days by default). The action must be filed within 15 business days of notification of the award for domestic arbitrations and 25 business days for international ones; the other side has the same period to answer, only documentary evidence is allowed except in grave cases (up to 10 business days of evidence, never witnesses or party confession), and the court must decide within 10 business days, with no appeal. Filing does not stay compliance or enforcement unless the court orders a stay against security proportionate to the award; only a joint and several bank guarantee or equivalent is accepted, and the court rules on the stay within 5 business days. Where no party is Paraguayan or domiciled, habitually resident or principally active in Paraguay, the parties may expressly waive annulment or limit it to certain grounds.
Cost to do it: Annulment is decided on documents in a single instance, which keeps counsel time short; a party seeking a stay must post a bank guarantee sized by the Court of Appeal in relation to the amount of the award.
Example: An international award ordering payment of PYG 5,847,900,000 is notified on a Monday: the losing party has 25 business days to file for annulment. To stop enforcement meanwhile it must ask for a stay and post a joint and several bank guarantee related to the PYG 5,847,900,000 award. / On a US$1,000,000 award, the stay requires bank security in relation to US$1,000,000; a personal undertaking (caución juratoria) is never accepted.Ley Nº 7561/2025, De Arbitraje, Art. 8, 10, 48, 52, 53, 54 and 55, 2025-12-23 official text · verified 2026-10-28

3. Recognition and enforcement of foreign arbitral awards. An award rendered outside Paraguay is recognized under the treaties Paraguay has ratified; if more than one applies, the one most favourable to the party seeking recognition prevails, and where no treaty applies, or if the applicant so chooses, the law's own regime applies. The applicant files the original award or a copy, with a sworn public translation into Spanish, before the Tribunal de Apelación en lo Civil y Comercial of the Capital. The award debtor has 15 business days to object, only on grounds mirroring the New York Convention (invalid agreement or incapacity, lack of notice or defence, irregular tribunal or procedure, excess of mandate, non arbitrability under Paraguayan law, breach of international public policy, award not yet binding or set aside at the seat) and only with documentary evidence; the court decides within 10 business days and its decision cannot be appealed. Once recognized, the award is executed before the first instance civil and commercial judge of the Capital, of the debtor's domicile or of where assets are located, as the creditor chooses, following the procedure for executing judgments, with defences limited to forgery of the award, ten year prescription of the award, and payment (Código Procesal Civil art. 526 a, b and d). Domestic awards skip recognition and go straight to execution. Foreign documents filed with Paraguayan courts must be apostilled or legalized and translated by a registered public translator.
Cost to do it: Translation of the award by a registered public translator (matriculado) and apostille or legalization of documents issued abroad; under the New York Convention art. III, fees for foreign awards may not be appreciably higher than for domestic ones.
Example: A New York seated award against an Asunción company: the creditor files the award and a Spanish translation with the Court of Appeal; the debtor answers within 15 business days; the court rules within 10 business days, without appeal; execution then proceeds against the company's assets in Paraguay. / On paper, recognition of a US$1,000,000 (PYG 5,847,900,000) award takes about 25 business days after the debtor is served, plus execution; real timings depend on court workload.Ley Nº 7561/2025, De Arbitraje, Art. 10, 58, 59, 60, 61, 62 and 63, 2025-12-23 official text · verified 2026-10-28

4. New York Convention. Paraguay approved the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards by Ley 948, promulgated on 9 September 1996, acceded on 8 October 1997, and the Convention entered into force for Paraguay on 6 January 1998 with no reciprocity or commercial reservation, so it applies to awards from any country. Courts must refer parties to arbitration when there is a written agreement, unless it is null, inoperative or incapable of being performed (art. II). Recognition may not be subject to substantially more onerous conditions or higher fees than domestic awards (art. III); the applicant supplies the authenticated award and the arbitration agreement with a certified translation (art. IV); refusal is limited to the art. V grounds; and if annulment is pending at the seat the court may adjourn and order security (art. VI).
Cost to do it: No Convention fee; the cost is translation, authentication and counsel, which art. III caps at the level applied to domestic awards.
Example: An award made in São Paulo, Santiago or Madrid is enforceable in Paraguay on the same footing, since Paraguay made no reciprocity reservation. / A US$1,000,000 award rendered in a non Convention state still qualifies, because Paraguay applies the Convention to awards from any state.Ley Nº 948/1996, aprueba la Convención sobre el Reconocimiento y la Ejecución de las Sentencias Arbitrales Extranjeras (Nueva York, 10 June 1958), Art. 1 of the law; Convention art. I to VI, 1996-09-09 official text · verified 2026-10-28

5. ICSID. Paraguay signed the ICSID Convention on 27 July 1981, deposited its ratification on 7 January 1983 and has been a Contracting State since 6 February 1983, according to the ICSID list of Contracting States as of 17 July 2026. ICSID jurisdiction covers legal disputes arising directly out of an investment between a Contracting State and a national of another Contracting State that both consent to in writing, typically through an investment treaty or contract (art. 25). ICSID awards are binding and subject only to the Convention's own remedies (art. 53), and each Contracting State must recognize them and enforce their pecuniary obligations as if they were final judgments of its own courts (art. 54), without the review available for New York Convention awards; state immunity from execution is preserved (art. 55).
Cost to do it: ICSID charges its own lodging and administrative fees under its schedule of fees (not restated here); consent depends on the applicable investment treaty or contract.
Example: An investor protected by a Paraguayan investment treaty that offers ICSID can bring a treaty claim against the State; a resulting award for PYG 5,847,900,000 is enforced in Paraguay as a final local judgment. / A US$1,000,000 ICSID award against Paraguay is not open to New York Convention style objections in Paraguayan courts; annulment is only through ICSID's own committee.Convention on the Settlement of Investment Disputes between States and Nationals of Other States (Washington, 18 March 1965), Art. 25, 53, 54 and 55; ICSID/3 entry for Paraguay, 1983-02-06 official text · verified 2026-10-28

6. Mercosur commercial arbitration agreement. Ley 3303, promulgated on 11 September 2007, approves the Mercosur Agreement on International Commercial Arbitration signed in Buenos Aires on 23 July 1998. It applies where the parties had their residence, main place of business, seat, branch or agency in more than one Mercosur State when they agreed to arbitrate, or where the underlying contract has an objective legal or economic contact with more than one Mercosur State, and in further cases tied to a Mercosur seat. The arbitration agreement must be in writing, be fair and not abusive (especially in adhesion contracts), be clearly legible and reasonably prominent, and is autonomous from the main contract. Enforcement of foreign awards under the Agreement follows the 1975 Panama Inter American Convention, the Mercosur Las Leñas Protocol on judicial cooperation (CMC Decision 5/92) and the 1979 Montevideo Inter American Convention on extraterritorial validity of judgments and awards. For disputes with Argentine, Brazilian or Uruguayan counterparties, this layer sits alongside the New York Convention; the Argentine side is covered at a high level in The Argentine Thread guide.
Cost to do it: No separate fee; drafting a clearly legible, prominent clause avoids a validity challenge in adhesion contracts.
Example: A Paraguayan soybean exporter and an Argentine buyer: their contract has contacts with two Mercosur States, so the Mercosur Agreement applies to the arbitration and to enforcement of the award. / On a US$1,000,000 cross border sale, the creditor may rely on the New York Convention or the regional instruments; Ley 7561 art. 59 lets it pick the most favourable treaty.Ley Nº 3303/2007, aprueba el Acuerdo sobre Arbitraje Comercial Internacional del MERCOSUR, Agreement art. 3, 4, 5, 6 and 23, 2007-09-11 official text · verified 2026-10-28

7. Courts and foreign judgments. The civil and commercial courts apply the Código Procesal Civil (Ley 1337/1988). Jurisdiction cannot be extended by agreement except territorial jurisdiction, and never in favour of foreign judges unless a special law allows it, so a foreign forum clause alone does not oust Paraguayan courts (art. 3). Foreign judgments are enforceable under treaties with the country of origin; failing a treaty, under seven conditions: the judgment is res judicata where given and comes from a court with international jurisdiction in a personal action (or a real action over movables brought into Paraguay); no case on the same object between the same parties is pending in Paraguay; a defendant domiciled in Paraguay was lawfully summoned and represented or declared in default; the obligation is valid under Paraguayan law; the judgment does not breach domestic public policy; it meets authenticity requirements; and it does not conflict with an earlier or simultaneous Paraguayan judgment (art. 532). The creditor files a legalized and translated copy before the first instance judge on duty; the judge gives the judgment debtor and the public prosecutor 6 days each to respond, objections follow the incident procedure, and if exequatur is granted execution proceeds as for local judgments (art. 533 and 534). Paraguayan judges enforce interim measures requested by foreign judges if they are admissible under Paraguayan law and the applicant gives counter security (art. 537). In executing judgments, the debtor has 3 days after attachment to raise only five defences: forgery, ten year prescription of the judgment, forgery or unfitness of the title, payment, or debt release or extension, based on facts after the judgment (art. 525 to 527).
Cost to do it: Legalization or apostille and sworn translation of the foreign judgment, plus counsel fees under the statutory scale; execution fees for counsel follow Ley 1376/1988 art. 34 and 35.
Example: A Brazilian judgment for PYG 1,169,580,000 against a debtor domiciled in Asunción: the creditor files a legalized, translated copy with the first instance judge, the debtor and the prosecutor get 6 days each, and once exequatur is granted assets are attached and the debtor has 3 days to raise one of the five permitted defences. / For a US$200,000 judgment from a court abroad, failure to serve the Paraguayan defendant properly in the original case is a ground to refuse exequatur under art. 532 c.Ley Nº 1337/1988, Código Procesal Civil, Art. 3, 525, 526, 527, 532, 533, 534, 536 and 537, 1988-10-20 official text · verified 2026-10-28

8. Costs and lawyer fees: the loser pays, on a statutory scale. The losing party must pay all of the winner's costs even if not requested, unless the judge exempts it in whole or in part with stated reasons (Código Procesal Civil art. 192 and 193). Absent a written fee agreement, lawyer fees are fixed under Ley 1376/1988, and an agreement for fees below the scale, or an advance waiver, is void (art. 1). For proceedings without a specific rate, first instance fees are 5 to 20 percent of the amount at stake, lower percentages applying to larger amounts (art. 32); each appeal instance adds 25 to 35 percent of the first instance fee, and the maximum applies if the appellant obtains full reversal (art. 33). The losing side's lawyer is regulated at 50 percent of the winner's lawyer fee, and a procurator at half of the sponsoring lawyer (art. 25). Interim measures earn one third of the fee on the amount secured, and no less than 4 daily minimum wages (art. 36). Ley 4590/2012 amended only art. 27 e), 54 and 55 (criminal cases).
Cost to do it: First instance counsel fee of 5 to 20 percent of the amount at stake for the winner's lawyer, recoverable from the loser, plus 25 to 35 percent of that fee per appeal instance.
Example: On a PYG 5,847,900,000 claim, the winner's first instance lawyer fee is regulated between PYG 292,395,000 (5 percent) and PYG 1,169,580,000 (20 percent); at 5 percent, each appeal instance adds PYG 73,098,750 to PYG 102,338,250, and the losing side's lawyer is regulated at half the winner's fee. / On a US$1,000,000 claim, the court regulated first instance fee is US$50,000 to US$200,000 and the losing party bears it; an appeal adds US$12,500 to US$17,500 per instance at the 5 percent base.Ley Nº 1337/1988, Código Procesal Civil, and Ley Nº 1376/1988, Arancel de Honorarios de Abogados y Procuradores (as amended by Ley Nº 4590/2012), CPC art. 192 and 193; Ley 1376 art. 1, 25, 32, 33 and 36, 1988-12-20 official text · verified 2026-10-28

9. Executive proceedings on credit instruments (pending start). Ley 7663/2026, promulgated and published on 19 June 2026, rewrites Código Procesal Civil art. 158, 159, 444 and 448 and adds art. 501 bis: a creditor suing on a bill of exchange, promissory note, conformed invoice or dishonoured cheque must deposit the original title with the court clerk (or ask to be appointed judicial depositary, with a note on the title), the deposit stays for the whole case, judgments must say to whom the title is returned, and funds held in court are not released to the creditor until the original title is available to the paying debtor. The law takes effect only when the Supreme Court issues its implementing Acordada, which the law required within 120 days and which must be published in the Gaceta Oficial.
Cost to do it: No new fee in the law; lenders need custody processes for original promissory notes and cheques to sue on them.
Example: A finance company collecting a PYG 58,479,000 promissory note must hand the original to the clerk with the claim, or be named judicial depositary, once the Acordada is in force. / Even for a US$10,000 (PYG 58,479,000) note, a lender that cannot produce the original will not get funds released by the court.Ley Nº 7663/2026, régimen de depósito de títulos de crédito originales; modifica el Código Procesal Civil, Art. 1 (CPC art. 158, 159, 444 and 448), 2 (CPC art. 501 bis), 4, 6, 7 and 8, 2026-06-19 official text · verified 2026-10-28 · changed: Ley 7663/2026 (19 June 2026) adds a mandatory deposit of original credit instruments in executive collection suits, effective once the Supreme Court Acordada is issued (art. 7); the Acordada was due within 120 days of the law (art. 8).

Route	Legal basis	Competent body	Key deadlines	Review available	Cost markers
Award seated in Paraguay	Ley 7561/2025 art. 48, 52 to 58	Annulment: Court of Appeal of the Capital; execution: first instance judge	Comply within 20 days if award is silent; annulment 15 (domestic) or 25 (international) business days	Closed annulment grounds; no merits review; no appeal	Arbitrator fees set by tribunal; stay needs bank guarantee
Foreign award	Ley 7561/2025 art. 59 to 63; Ley 948/1996 (New York Convention); Ley 3303/2007 (Mercosur)	Court of Appeal of the Capital, then first instance judge	Objection 15 business days; decision 10 business days	New York Convention style grounds; no appeal	Translation and apostille; fees no higher than domestic (NYC art. III)
ICSID award	ICSID Convention art. 53 to 55 (in force for Paraguay 6 Feb 1983)	Enforced as a final local judgment	Per ICSID rules	Only ICSID annulment	ICSID schedule of fees
Foreign judgment	Código Procesal Civil art. 532 to 534	First instance judge (exequatur)	Debtor and prosecutor 6 days each	Seven conditions incl. jurisdiction, service and public policy	Legalization, translation, counsel
Paraguayan court judgment	Código Procesal Civil art. 192, 519 to 530; Ley 1376/1988 art. 32	First instance judge, appeals	3 days for defences after attachment	Appeal; limited execution defences	Lawyer fee scale 5 to 20 percent: PYG 292,395,000 to 1,169,580,000 (US$50,000 to 200,000), borne by loser

Routes to enforce a claim in Paraguay (amounts for a US$1,000,000 claim at PYG 5,847.90)

Worked example

Foreign award: a Spanish equipment supplier wins a US$1,000,000 (PYG 5,847,900,000) award in a Madrid seated arbitration against a Paraguayan agribusiness. It files the award and a sworn Spanish translation of any non Spanish text with the Tribunal de Apelación en lo Civil y Comercial of Asunción under Ley 7561/2025 art. 63 and the New York Convention. The debtor has 15 business days to object on art. 61 grounds with documents only; the court rules within 10 business days and there is no appeal. The supplier then executes before the first instance judge where the debtor has assets; the debtor can only plead forgery of the award, ten year prescription or payment.
Domestic arbitration: two Paraguayan companies arbitrate in Asunción and the award orders payment of PYG 1,169,580,000 (US$200,000), silent on timing. The debtor must pay within 20 days of notification (art. 48). It may seek annulment within 15 business days (art. 54) but enforcement continues unless it posts a bank guarantee and the Court of Appeal orders a stay within 5 business days.
Court litigation: a US$1,000,000 (PYG 5,847,900,000) contract claim is won in first instance. The court regulates the winner's lawyer fee between 5 and 20 percent of the amount (Ley 1376/1988 art. 32), US$50,000 to US$200,000, payable by the loser under CPC art. 192, and the loser's own lawyer is regulated at half that figure (art. 25).

Step by step

Draft the clause for the new law: choose a seat, rules, an odd number of arbitrators and the language; for contracts with Mercosur counterparties make the clause legible and prominent (Mercosur Agreement art. 4).
If neither party is Paraguayan or based in Paraguay and finality matters more than review, consider an express waiver or limitation of annulment that meets the writing requirement (Ley 7561 art. 53).
Do not rely on a foreign court clause alone against a Paraguayan counterparty: CPC art. 3 bars prorogation to foreign judges outside special laws; arbitration is the enforceable route.
If sued in court despite the clause, raise the arbitration objection in the first procedural opportunity; failing to do so is a tacit waiver for the matters claimed (Ley 7561 art. 12 and 14).
Raise procedural objections before the tribunal within the agreed period or 5 business days, or lose them for annulment (art. 8 and 52).
After an award, diary 10 days (domestic) or 20 days (international) for correction or additional award requests (art. 50 and 51) and 15 or 25 business days for annulment (art. 54).
To enforce a foreign award, prepare the award, the agreement, apostilles or legalizations and sworn translations before filing with the Court of Appeal of the Capital; identify debtor assets for the execution stage.
For foreign judgments, gather proof of finality and of proper service on the Paraguayan defendant before filing for exequatur under CPC art. 532 to 534.
For collection on promissory notes or cheques, keep originals in secure custody: once the Ley 7663/2026 Acordada is in force, the original must be deposited with the court.

Common traps

Arbitrations already requested before Ley 7561/2025 took effect stay under the repealed Ley 1879/2002, but awards rendered afterwards follow the new annulment and enforcement rules (art. 70).
Individual employment disputes cannot be arbitrated (Ley 7561 art. 2); an arbitration clause in an employment contract will not keep a labour claim out of court.
Arbitrations with state entities must be decided at law and are public; confidentiality and equity mandates are unavailable (art. 2).
A late award is a ground for annulment only if the parties expressly and unequivocally agreed that it should be (art. 44 and 52 g).
An even number of arbitrators in the clause is automatically reduced to the next lower odd number (art. 15), which can leave one side without its nominee.
Annulment does not suspend enforcement; a stay needs a bank guarantee, never a personal undertaking (art. 54). Art. 58 refers to a suspension under art. 56, while the stay power sits in art. 54, so expect argument on this cross reference.
Corrections and interpretation requests not made in time bar annulment on grounds they could have cured (art. 52, last paragraphs).
Foreign judgments obtained without proper service on a Paraguayan domiciled defendant are refused exequatur (CPC art. 532 c).
Court cases lapse after 6 months without procedural activity (CPC art. 172), and the lapse cannot be cured afterwards (art. 174).
Fee agreements with Paraguayan lawyers below the statutory scale are void (Ley 1376/1988 art. 1), and the scale also drives the cost award against the loser.

Sources

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