Countries › Paraguay › Guide › 11. Real estate and land › Real estate and land in Paraguay: foreign ownership, the border security zone, the property registry and the taxes on buying, holding, renting and selling

Real estate and land in Paraguay: foreign ownership, the border security zone, the property registry and the taxes on buying, holding, renting and selling

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

Foreigners can generally buy, own and rent out Paraguayan real estate on the same footing as nationals; the one statutory nationality limit is Ley 2532/2005, which bars nationals of neighbouring countries, and companies mostly owned by them, from owning or holding usufruct over rural land within 50 kilometres of the land and river borders, on pain of nullity and a fine of twice the deal value. A purchase is a notarial deed that the notary may sign only with a registry ownership certificate (issued in at most 10 days, valid 30 days) and proof that municipal property tax is paid, and the Dirección General de los Registros Públicos must register it within 20 days and will not accept it without proof of the seller's income tax. Owners pay a 1 percent annual property tax on the cadastral value, VAT at 5 percent on 30 percent of the price on taxable sales (1.5 percent effective), and income tax on deemed net income: 8 percent for resident individuals capped at 2.4 percent of the price, and 15 percent INR for non residents, an effective 4.5 percent of a sale price and 7.5 percent of gross rent.

USD figures use PYG 5,847.90 per US dollar, the Banco Central del Paraguay reference quotation for 27 October 2026 (latest planilla published on the verification date), https://www.bcp.gov.py/webapps/web/cotizacion/monedas. Conversions are for orientation only.

Key facts

Border security zone where neighbouring country nationals may not own rural land	50 kmLey 2532/2005 art. 1 and 2, as of 2026-10-28 · in force
Fine for a void transaction in the border security zone	2x the value of the operation multipleLey 2532/2005 art. 8, as of 2026-10-28 · in force
Maximum time for the registry ownership certificate	10 daysLey 879/1981 art. 280 (Ley 2903/2006), as of 2026-10-28 · in force
Validity of the registry ownership certificate	30 daysLey 879/1981 art. 280 (Ley 2903/2006), as of 2026-10-28 · in force
Maximum time to register a deed signed under a valid certificate	20 daysLey 879/1981 art. 280 (Ley 2903/2006), as of 2026-10-28 · in force
Annual property tax rate (impuesto inmobiliario)	1 %Ley 125/1991 art. 61, as of 2026-10-28 · in force
Property tax rate, single rural farm parcel under 5 hectares	0.5 %Ley 125/1991 art. 61, as of 2026-10-28 · in force
VAT on taxable real estate sales (5% on 30% of price)	1.5 %Ley 6380/2019 art. 85 num. 3 and 90 lit. b, as of 2026-10-28 · in force
VAT on housing leases	5 %Ley 6380/2019 art. 90 lit. a, as of 2026-10-28 · in force
Personal income tax on capital gains, resident individuals	8 %Ley 6380/2019 art. 60, as of 2026-10-28 · in force
Maximum effective IRP on a property sale (8% on 30% of price)	2.4 %Ley 6380/2019 art. 59 num. 1 and 60, as of 2026-10-28 · in force
Effective INR on a property sale by a non resident (15% on 30% of price)	4.5 %Ley 6380/2019 art. 75 num. 2 and 76, as of 2026-10-28 · in force
Effective INR on rent paid to a non resident (15% on 50% of rent)	7.5 %Ley 6380/2019 art. 75 num. 3 and 76, as of 2026-10-28 · in force
Non resident income tax (INR) rate	15 %Ley 6380/2019 art. 76, as of 2026-10-28 · in force

The rule

1. Who may own: the border security zone. Paraguay sets no general nationality limit on owning real estate, but Ley 2532/2005 declares a border security zone of the 50 kilometre strip adjacent to the land and river borders. Unless the Executive authorizes it by decree on public interest grounds (the law gives as an example activities that create jobs in the zone), nationals of any neighbouring country, and legal entities made up mostly of nationals of neighbouring countries, may not be owners, co owners or usufructuaries of rural real estate in the zone. Shares of companies limited by shares and cooperative certificates of those who seek to own or hold usufruct over rural land in the zone must be registered (nominativas) and non endorsable. Notaries may not execute deeds for transactions the law does not allow, cadastral certificates must state whether the parcel lies wholly or partly in the zone, and acts against the law are void, with a fine of twice the value of the operation, without prejudice to sanctions on the judges, officials and notaries involved. Since Ley 2647/2005 the ban does not affect duly proven rights acquired before the law, inheritance rights of nationals of neighbouring countries, property awarded at judicial auction or received in payment by banks and finance companies regulated by Ley 861/96 from those countries, liens created before the law, or the rights of nationals of neighbouring countries with permanent residence in Paraguay. Urban property and nationals of non neighbouring countries are outside the ban.
Cost to do it: No fee to check: the cadastral certificate must state whether the parcel is in the zone. A breach costs the deal itself (the act is void) plus a fine of twice the value of the operation.
Example: A company majority owned by nationals of a neighbouring country that buys a PYG 5,847,900,000 ranch 30 km from the border without an Executive decree faces nullity of the purchase and a fine of PYG 11,695,800,000. / The same US$1,000,000 ranch: the purchase is void and the fine is US$2,000,000. A buyer from a non neighbouring country, or a national of a neighbouring country with permanent residence in Paraguay, is not caught.Ley Nº 2532/2005 que establece la zona de seguridad fronteriza de la República del Paraguay, art. 3 as reworded by Ley Nº 2647/2005, Ley 2532 art. 1, 2, 4, 5, 7 and 8; art. 3 (text of Ley 2647/2005 art. 1), 2005-02-17 official text · verified 2026-10-28 · changed: Ley 2647/2005, promulgated on 18 August 2005 and published on 19 August 2005, rewrote art. 3 to add the exceptions for inheritance, judicial auctions and bank foreclosures, prior liens and permanent residents.

2. How title passes: notary, certificate and registry deadlines. Titles that must be registered must be in a public deed, public instrument, final judgment or authentic document, and the Registro de Inmuebles records real rights and their changes, the family home regime, attachments and other restrictions, and leases (a private lease needs signatures authenticated by a registry notary). No notary may execute a deed that transfers, restricts or modifies real rights, even if the parties ask, without the certificate issued by the head of the registry section showing ownership and current condition of the property. The registry must issue the certificate within 10 days of the request; it is valid for 30 days nationwide, and while it is valid no attachment, inhibition or other restriction can be registered against the property. Deeds signed while the certificate is valid must be registered within 20 days of filing; a filing with formal defects is returned and the priority reserve survives 30 days for the cure; refused filings are noted provisionally for up to 90 days. Registry officials who break the filing order or the deadlines face dismissal and damages, claimable in a summary proceeding before the Asunción civil and commercial court of first instance.
Cost to do it: These articles set deadlines, not fees; registry, notary and certificate charges apply and are not reproduced here.
Example: A buyer who requests the ownership certificate on day 1 should have it by day 11, must sign the deed within its 30 day validity, and the registry then has 20 days from filing to register the transfer. / On a US$200,000 apartment, the certificate blocks new attachments against the seller's unit for 30 days, which protects the price paid at signing.Ley Nº 879/1981 Código de Organización Judicial, art. 280 as reworded by Ley Nº 1838/2001 and Ley Nº 2903/2006, Ley 879/1981 art. 269, 271, 272, 277 and 280 (text of Ley 2903/2006 art. 1), 2006-04-28 official text · verified 2026-10-28 · changed: Ley 2903/2006, promulgated on 28 April 2006 and published on 12 May 2006, rewrote art. 280 (as already amended by Ley 1838/2001) with the 10 day certificate, 30 day validity, 20 day registration and strict filing order rules. Consolidated text checked against the Supreme Court's updated and annotated edition: https://www.pj.gov.py/ebook/libros_files/Codigo-Organizacion-Judicial-Actualizado-Concordado-2022.pdf

3. Property tax (impuesto inmobiliario). An annual tax falls on all real estate in Paraguay; taxpayers are individuals, companies and entities in general, with the usufructuary liable where ownership is split, and the taxable event occurs on the first day of the calendar year. The rate is 1 percent, and 0.5 percent for rural parcels under 5 hectares that are the owner's only property and are used for farming. The base is the fiscal valuation set by the Servicio Nacional de Catastro, split into land and buildings for urban parcels (per square metre) and land only, per hectare, for rural parcels; the Executive approves the valuation system each year and values are adjusted annually by the CPI change in the twelve months before 1 November. Rural parcels may not bear any other municipal tax or fee. The tax belongs to the municipalities and departments: each municipality keeps 70 percent, 15 percent goes to the department and 15 percent to lower income municipalities (Asunción keeps 85 percent). Notaries may not execute deeds transferring, modifying or creating real rights without a certificate that the tax and its surcharges are paid, which must be quoted in the deed; on a transfer the full tax must be paid first regardless of what the parties agree, and the notary is jointly liable otherwise. No judicial or administrative step concerning real estate may proceed without that certificate. Surcharges apply to vacant urban lots and, on a progressive scale by total holdings, to rural land.
Cost to do it: 1 percent a year of the fiscal (cadastral) value, 0.5 percent for qualifying small farms, plus municipal service fees under Ley 3966 art. 158 to 162 set by each municipality's ordinance.
Example: An apartment with a cadastral value of PYG 300,000,000 pays PYG 3,000,000 a year; the fiscal value is usually well below the market price, so check the municipal tax bill before signing. / PYG 3,000,000 is about US$513 a year at the reference rate.Ley Nº 125/1991 que establece el nuevo régimen tributario, Libro II (not repealed by Ley 6380/2019 art. 153), as amended by Ley Nº 5513/2015; Ley Nº 3966/2010 Orgánica Municipal, Ley 125 art. 54, 55, 56, 61, 64; art. 60, 62, 66, 70 and 74 (texts of Ley 5513/2015 art. 1); Ley 3966 art. 152 and 153, 2015-10-23 official text · verified 2026-10-28 · changed: Ley 5513/2015, promulgated on 23 October 2015 and published on 29 October 2015, rewrote Ley 125 art. 60 (Catastro valuation, annual CPI adjustment), 62, 66, 70 and 74 and Ley 3966 art. 155 and 179. Ley 6380/2019 art. 153 repealed Books I, III and IV of Ley 125 but left Book II, the property tax, in force.

4. VAT on sales and rents. VAT taxpayers include companies and other entities, individuals who run a sole proprietorship (including sales of its assets), and individuals who lease real estate. On the sale of real estate the taxable base is 30 percent of the value of the operation (or of each monthly instalment in sales on credit) and the rate is 5 percent, an effective 1.5 percent of the price; on leases the base is the monthly rent, at 5 percent for property used exclusively as housing (including use and usufruct) and the general 10 percent otherwise. Transfers of real estate contributed to the capital of a company, and transfers resulting from mergers, spin offs and other reorganizations, are exempt. A private individual selling a home that is not part of a business is not a VAT taxpayer on the sale.
Cost to do it: 1.5 percent of the price on taxable sales; 5 percent of monthly rent on housing leases, 10 percent on other leases.
Example: A developer company selling a PYG 1,169,580,000 apartment charges VAT of 5 percent on PYG 350,874,000, that is PYG 17,543,700. A housing lease at PYG 5,847,900 a month carries VAT of PYG 292,395 when the landlord is a VAT taxpayer. / On a US$200,000 apartment bought from a developer, VAT is US$3,000; on a US$1,000 a month housing lease it is US$50 a month.Ley Nº 6380/2019 de modernización y simplificación del sistema tributario nacional, Art. 82, 85 num. 2 and 3, 90 lit. a and b, 100 num. 1 lit. j and k, 2019-09-25 official text · verified 2026-10-28

5. Income tax on gains and rents: resident individuals (IRP). Capital income of resident individuals, including gains from selling or leasing real estate, is taxed under the personal income tax (IRP) at 8 percent. On a sale the net income is conclusively presumed to be the lower of 30 percent of the sale price or the price less the purchase price and expenses backed by receipts (for registered property the cost may be proven with the registered deed), so the tax never exceeds 2.4 percent of the price. On leases the taxpayer may choose net income of 50 percent of the rent, or rent less property tax and documented expenses. The tax administration must set up collection at the time of the sale as a single and final payment, and gains on property sold through expropriation are exempt. A home bought for one's own residence can be deducted under the conditions of art. 66, once every five years, and is then not deductible again when sold.
Cost to do it: At most 2.4 percent of the sale price; 4 percent of gross rent under the 50 percent option.
Example: A resident selling for PYG 1,461,975,000 pays at most PYG 35,087,400 (8 percent of 30 percent of the price); if the documented gain is smaller, 8 percent of that gain. / On a US$250,000 sale, at most US$6,000; with a documented gain of US$50,000, US$4,000.Ley Nº 6380/2019 de modernización y simplificación del sistema tributario nacional, Art. 49, 56 num. 2, 57, 59 num. 1 and 2, 60, 61 and 66, 2019-09-25 official text · verified 2026-10-28

6. Income tax on gains and rents: non residents (INR). Non resident individuals and entities with Paraguayan source income pay the non resident income tax (INR), even if acting through an agent or representative; gains from selling or leasing property located in Paraguay are Paraguayan source. Net income is fixed by law with no proof to the contrary: 30 percent of the sale price and 50 percent of the rent. The rate is 15 percent, so the effective charge is 4.5 percent of a sale price and 7.5 percent of gross rent. The persons listed in art. 2 of the law, including the State and municipalities, must withhold and are jointly liable when they pay or remit the income to the non resident. The Dirección General de los Registros Públicos will not accept deeds of sale of registrable real estate without proof that the IRP or INR has been paid.
Cost to do it: 4.5 percent of the gross sale price; 7.5 percent of gross rent.
Example: A non resident selling for PYG 1,461,975,000 bears INR of PYG 65,788,875; renting at PYG 5,847,900 a month, INR is PYG 438,593 a month. / US$11,250 on a US$250,000 sale; US$75 a month on US$1,000 of rent.Ley Nº 6380/2019 de modernización y simplificación del sistema tributario nacional, Art. 72, 73 num. 4, 75 num. 2 and 3, 76, 77 and 137, 2019-09-25 official text · verified 2026-10-28

Event	Who pays	Base	Rate	Effective
Purchase from a company or business seller	VAT, charged by the seller	30% of price	5%	1.5% of price
Purchase from a private individual	No VAT	None	None	0%
Holding	Owner (usufructuary if split)	Cadastral value	1% (0.5% small single farm)	1% of cadastral value
Housing lease	VAT, landlord taxpayer	Monthly rent	5%	5% of rent
Other lease	VAT, landlord taxpayer	Monthly rent	10%	10% of rent
Rent, resident individual	IRP	50% of rent or rent less expenses	8%	Up to 4% of rent
Rent, non resident	INR, withheld by the payer where required	50% of rent	15%	7.5% of rent
Sale, resident individual	IRP, single and final payment	Lower of 30% of price or actual gain	8%	Up to 2.4% of price
Sale, non resident	INR	30% of price	15%	4.5% of price

Taxes on a property deal at a glance (Ley 6380/2019 and Ley 125/1991; percentages of price or rent)

Worked example

A non resident buys an Asunción apartment for US$200,000 (PYG 1,169,580,000) from a developer company: VAT of PYG 17,543,700 (US$3,000) is charged by the seller; there is no foreign buyer surcharge and no border zone issue for urban property.
Holding: with a cadastral value of PYG 300,000,000 the owner pays PYG 3,000,000 (about US$513) of property tax a year, and the paid tax certificate will be needed for any later deed.
Renting it as a home at US$1,000 a month (PYG 5,847,900): INR of PYG 438,593 (US$75) a month, and VAT of PYG 292,395 (US$50) a month where the landlord is a VAT taxpayer.
Selling it later for US$250,000 (PYG 1,461,975,000): INR of PYG 65,788,875 (US$11,250), 4.5 percent of the price, regardless of the actual gain; proof of payment is needed before the registry will accept the deed. A resident individual seller would pay at most PYG 35,087,400 (US$6,000).
Gross to net on the sale for the non resident: US$250,000 less US$11,250 INR leaves US$238,750 before notary, registry and agent costs.

Step by step

Decide the holding vehicle: direct ownership or a Paraguayan company (see the entities section). For rural land within 50 km of a border, confirm that no owner, or majority of owners, is a national of a neighbouring country without permanent residence, or obtain an Executive decree first.
Order the cadastral certificate (it must state whether the parcel is in the border security zone) and check the cadastral value and any property tax arrears with the municipality.
Have the notary request the registry ownership certificate (statutory maximum 10 days); sign the deed within its 30 day validity, during which no new attachments can be registered.
At signing, the notary must quote the property tax clearance certificate in the deed; any tax due on the property is paid in full beforehand.
Settle the seller's IRP or INR and any VAT; the registry will not accept the deed of sale without proof of IRP or INR payment.
File the deed testimony at the Dirección General de los Registros Públicos; registration is due within 20 days of filing, with 30 days to cure formal defects while priority is kept.
After closing, register leases if third party protection is wanted (private lease signatures authenticated by a registry notary), and diarize the annual property tax.

Common traps

Shareholdings count: a company made up mostly of nationals of neighbouring countries is caught by the border zone ban, and its shares must be registered and non endorsable; restructuring through a company does not avoid the rule.
The border zone sanction is nullity plus a fine of twice the value of the operation, and judges, officials and notaries who take part also face sanctions, so a defective title can be unwound years later.
The non resident INR on a sale is 4.5 percent of the gross price even if the property was sold at a loss, because net income is fixed by law with no proof to the contrary.
A private purchase agreement (boleto) is not enough: registrable titles must be in a public deed or other authentic instrument and the deed cannot be signed without the registry certificate and the property tax clearance.
Unpaid property tax travels with the property in practice: the full tax must be paid before a transfer whatever the parties agree, and the notary is jointly liable if the certificate is skipped.
VAT on rent depends on the use: 5 percent only for property used exclusively as housing; mixed or commercial use is taxed at 10 percent.
The home purchase deduction under IRP art. 66 is lost on resale: a property already deducted is not deductible again when sold.

Sources

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