Countries › Paraguay › Guide › 16. What is normal abroad but not here › No rural land near the border for neighbouring nationals

No rural land near the border for neighbouring nationals

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

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

Abroad, foreigners can often buy farmland anywhere, subject to general screening. In Paraguay, nationals of Argentina, Bolivia and Brazil, and companies majority owned by them, cannot own, co own or hold usufruct over rural land within 50 km of the land and river borders, unless authorised by decree. A barred deal is void and carries a fine of twice its value; inheritance, bank foreclosures and permanent residents are excepted.

USD figures use PYG 5,868.31 per US dollar, the Banco Central del Paraguay reference quotation for 28 October 2026 (planilla de cotizaciones). Conversions are for orientation only.

Key facts

Border security zone width for rural land	50 kmLey 2532/2005 art. 1, as of 2005-02-17 · in force
Fine for a void border zone deal, multiple of operation value	2 timesLey 2532/2005 art. 8, as of 2005-02-17 · in force
BCP reference rate, PYG per US dollar, 28 October 2026	5868.31 PYGBCP planilla de cotizaciones, as of 2026-10-28 · in force

The rule

1. The 50 km zone. The border security zone is the 50 km strip next to the land and river borders. Unless the Executive authorises it by decree on public interest grounds, such as activities that create jobs in the zone, foreigners from any neighbouring country, and legal persons majority made up of them, may not be owners, co owners or usufructuaries of rural land there.
Cost to do it: A presidential decree is needed for an exception; no fee is set in the law.
Example: A Uruguayan or Spanish investor is not caught; a company majority owned by Brazilian nationals is. / Not applicable.Ley Nº 2532/2005, border security zone (promulgated 17 February 2005, published 24 February 2005), art. 1 and 2, 2005-02-17 official text · verified 2026-10-28

2. Exceptions. The ban does not affect duly proven rights acquired before the law, inheritance rights of neighbouring nationals over land or companies in the zone, land awarded at judicial auction or given in payment to banks and finance companies regulated by Ley 861/1996 of those countries, neighbouring nationals with permanent residence in Paraguay, and liens created before the law.
Cost to do it: Permanent residence is the usual route; see the immigration section for its fees.
Example: An Argentine national with permanent residence in Paraguay may buy a ranch inside the zone. / Not applicable.Ley Nº 2532/2005, art. 3 as reworded by Ley Nº 2647/2005 (promulgated 18 August 2005), Ley 2532/2005 art. 3 (text given by Ley 2647/2005 art. 1), 2005-08-18 official text · verified 2026-10-28 · changed: Ley Nº 2647/2005 of 18 August 2005 reworded art. 3 to add the inheritance, bank foreclosure and permanent resident exceptions.

3. Controls and sanctions. Shares of share companies, and cooperative certificates, of those seeking to own or hold rural land in the zone must be registered and non endorsable. Notaries may not record barred deals, and Catastro certificates must state whether a property lies wholly or partly in the zone. Acts that breach the law are void, and nullity carries a fine of twice the value of the operation, without prejudice to sanctions on judges, officials and notaries involved.
Cost to do it: A void deal plus a fine of twice its value.
Example: A company majority owned by Argentine nationals that buys a PYG 2,000,000,000 ranch in the zone without a decree loses the deal and faces a PYG 4,000,000,000 fine. / About US$340,814 of land and a fine of about US$681,627.Ley Nº 2532/2005, art. 4, 5, 7 and 8, 2005-02-17 official text · verified 2026-10-28

Buyer	Rural land within 50 km	Norm
National of Argentina, Bolivia or Brazil	Barred unless decree	Ley 2532 art. 2
Company majority owned by such nationals	Barred unless decree	Ley 2532 art. 2
Such national with permanent residence	Allowed	Ley 2532 art. 3 (Ley 2647)
Heirs, bank foreclosures	Allowed	Ley 2532 art. 3 (Ley 2647)
Other foreigners	Not caught by this law	Ley 2532 art. 2

Who is caught by the border zone rule

Worked example

A Brazilian agribusiness group that wants soy land in Alto Paraná, which borders Brazil, checks the Catastro certificate first. Plots within 50 km of the border need a decree or a buyer that qualifies for an exception, such as a holding owned by a permanent resident; plots further inland are outside this rule. Argentine buyers face the same rule; for their home side, see The Argentine Thread guide.

Step by step

Get a Servicio Nacional de Catastro certificate showing whether the plot is in the zone (art. 7).
Trace ownership up the chain to see whether neighbouring nationals hold the majority.
Use registered, non endorsable shares in any buying company (art. 4).
If no exception applies, seek a decree before signing.

Common traps

Buying through a local company: the ban reaches companies majority owned by neighbouring nationals (art. 2).
Relying on the notary to spot it: the deed is void and the fine is twice the deal value (art. 8).
Assuming urban land is caught: the rule covers rural land.

Sources

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