Countries › Paraguay › Guide › 11. Real estate and land › Forests and environmental limits on rural land in Paraguay: the 25 percent reserve, zero deforestation in the Eastern Region, riparian forests and permits
Forests and environmental limits on rural land in Paraguay: the 25 percent reserve, zero deforestation in the Eastern Region, riparian forests and permits
Last verified: 2026-10-28 · Status: Stable
Rural properties over 20 hectares in forest zones must keep 25 percent of their area as natural forest (or reforest 5 percent), harvesting needs an INFONA management plan answered within 60 days and timber moves only with official waybills. In the Eastern Region, converting forest to farming, ranching or settlements is banned and unlicensable until 11 December 2030 under Ley 6676/2020, with 3 to 8 years in prison for violations, while intact native forest can be taken out of the property tax base. Riparian forests must be kept or restored, and farming, ranching, forestry and land clearing need an environmental impact assessment that is approved by silence after 90 days.
USD figures use PYG 5,868.31 per US dollar, the Banco Central del Paraguay reference quotation in the planilla for Wednesday 28 October 2026, https://www.bcp.gov.py/webapps/web/cotizacion/monedas. Conversions are for orientation only.
Key facts
| Natural forest reserve on rural properties over 20 ha in forest zones | 25 %Ley 422/1973 art. 42, as of 2026-10-28 · in force |
|---|---|
| Property size above which the forest reserve applies | 20 haLey 422/1973 art. 42, as of 2026-10-28 · in force |
| Area to reforest when the 25% reserve is missing | 5 %Ley 422/1973 art. 42, as of 2026-10-28 · in force |
| Forest authority deadline to answer a harvest application with management plan | 60 daysLey 422/1973 art. 24, as of 2026-10-28 · in force |
| End of the Eastern Region zero deforestation ban (10 years from 11 Dec 2020) | 2030-12-11 dateLey 6676/2020 art. 4, as of 2026-10-28 · in force |
| Prison for unlawful forest conversion in the Eastern Region | 3 to 8 yearsLey 6676/2020 art. 7, as of 2026-10-28 · in force |
| Minimum area of a forest under the zero deforestation law | 2 haLey 6676/2020 art. 2 b, as of 2026-10-28 · in force |
| Minimum maintenance of riparian forest restoration projects | 5 yearsLey 4241/2010 art. 6, as of 2026-10-28 · in force |
| Environmental assessment approved if no declaration within | 90 daysLey 294/1993 art. 10, as of 2026-10-28 · in force |
The rule
1. Forest reserve on rural land. All rural properties of more than 20 hectares in forest zones must keep 25 percent of their area as natural forest; an owner below that minimum must reforest an area equal to 5 percent of the property. All forests and forest lands in the country are subject to the Forest Law, forest devastation is prohibited, and forests needed to control erosion, protect watersheds and springs, protect crops, roads, public health or tourism are of public utility and can be expropriated.
Cost to do it: Keeping 25 percent of the land as forest is an opportunity cost on productive area; reforesting 5 percent is the statutory remedy when the reserve is missing.
Example: A 1,000 ha farm in a forest zone must keep 250 ha of natural forest; if it has none, the owner must reforest 50 ha. / On a farm valued at US$5,000 per hectare, the 250 ha reserve represents US$1,250,000 of land that cannot be cleared for crops, which belongs in the purchase price.Ley Nº 422/1973 Forestal, Art. 21, 22, 23 and 42, 1973-11-23 official text · verified 2026-10-28
Cost to do it: Keeping 25 percent of the land as forest is an opportunity cost on productive area; reforesting 5 percent is the statutory remedy when the reserve is missing.
Example: A 1,000 ha farm in a forest zone must keep 250 ha of natural forest; if it has none, the owner must reforest 50 ha. / On a farm valued at US$5,000 per hectare, the 250 ha reserve represents US$1,250,000 of land that cannot be cleared for crops, which belongs in the purchase price.Ley Nº 422/1973 Forestal, Art. 21, 22, 23 and 42, 1973-11-23 official text · verified 2026-10-28
2. Permits to use forests. Forest harvesting may start only with prior authorization from the forest authority (today the Instituto Forestal Nacional, INFONA, under Ley 3464/2008), on an application with a Forest Management Plan, which must be answered within 60 days. Timber and other forest products cannot be transported or traded without the authority's waybills (guías) stating quantity, species, volume, origin and destination; anyone who harvests, processes or trades forest products, or reforests for production, must register with the authority and report each year the area harvested and the volume extracted. Fire may not be used to open new farming areas outside the zones and seasons the authority sets. Planted forests on forest land are exempt from property tax under the conditions set by regulation.
Cost to do it: Management plans are prepared by forestry professionals (market priced); INFONA charges were not verified.
Example: A ranch that wants to harvest timber from its forest files a management plan with INFONA, which must answer within 60 days; every truckload then travels with an INFONA waybill. / Without the waybill the timber can be seized; a buyer of forest land should check the INFONA registration and past harvest reports.Ley Nº 422/1973 Forestal, Art. 24, 26, 27, 28, 30 and 43, 1973-11-23 official text · verified 2026-10-28
Cost to do it: Management plans are prepared by forestry professionals (market priced); INFONA charges were not verified.
Example: A ranch that wants to harvest timber from its forest files a management plan with INFONA, which must answer within 60 days; every truckload then travels with an INFONA waybill. / Without the waybill the timber can be seized; a buyer of forest land should check the INFONA registration and past harvest reports.Ley Nº 422/1973 Forestal, Art. 24, 26, 27, 28, 30 and 43, 1973-11-23 official text · verified 2026-10-28
3. Zero deforestation in the Eastern Region until December 2030. For 10 years from the law's promulgation on 11 December 2020, it is prohibited in the Eastern Region to convert forest land to farming or ranching of any kind or to human settlements, and to produce, transport or trade timber, firewood, charcoal or other forest products from unauthorized clearing; authorities may not issue permits, licenses, environmental declarations or any other document allowing such conversion. A forest is native vegetation of at least 2 hectares with mature trees of varied ages and species, canopy over more than 50 percent of the area and more than 60 trees per hectare of 15 cm or more in diameter at breast height. Forests are recorded in a special INFONA register and cannot be used for agrarian reform. Urban zones need a land use plan meeting sustainable development standards, technically approved by the Ministry of Environment (MADES), to be released from the ban. Violations carry administrative sanctions by MADES and INFONA and 3 to 8 years in prison, besides the duty to restore and compensate the environmental damage.
Cost to do it: No permit is available for conversion in the Eastern Region while the ban runs; the cost is the land use foregone.
Example: A buyer of a 500 ha Eastern Region farm with 200 ha of native forest cannot clear those 200 ha for soy or cattle before 11 December 2030, and no authority can license it. / Value Eastern Region forest land as forest, not as future cropland, at least until December 2030; clearing it is a crime punishable by 3 to 8 years in prison.Ley Nº 6676/2020 que prohíbe las actividades de transformación y conversión de superficies con cobertura de bosques en la Región Oriental, Art. 2, 4 and 7, 2020-12-11 official text · verified 2026-10-28 · changed: The ban started with Ley 2524/2004 (promulgated 13 December 2004, initially for two years) and was extended several times, including Ley 6256/2018 (promulgated 14 December 2018, two years); Ley 6676/2020, promulgated and published on 11 December 2020, extended it for 10 years, removed the industrial activities wording, added the urban land use plan release, the property tax exemption for native forest (art. 6) and the inventory of forests in indigenous communities (art. 5).
Cost to do it: No permit is available for conversion in the Eastern Region while the ban runs; the cost is the land use foregone.
Example: A buyer of a 500 ha Eastern Region farm with 200 ha of native forest cannot clear those 200 ha for soy or cattle before 11 December 2030, and no authority can license it. / Value Eastern Region forest land as forest, not as future cropland, at least until December 2030; clearing it is a crime punishable by 3 to 8 years in prison.Ley Nº 6676/2020 que prohíbe las actividades de transformación y conversión de superficies con cobertura de bosques en la Región Oriental, Art. 2, 4 and 7, 2020-12-11 official text · verified 2026-10-28 · changed: The ban started with Ley 2524/2004 (promulgated 13 December 2004, initially for two years) and was extended several times, including Ley 6256/2018 (promulgated 14 December 2018, two years); Ley 6676/2020, promulgated and published on 11 December 2020, extended it for 10 years, removed the industrial activities wording, added the urban land use plan release, the property tax exemption for native forest (art. 6) and the inventory of forests in indigenous communities (art. 5).
4. Protective forests along watercourses. The natural areas bordering watercourses are protected zones, and the protective forests along them must be kept permanently in their natural state; properties that have not kept them must restore them with native species. INFONA sets the minimum and maximum widths in proportion to the width of the watercourse and the region, and the species to plant; restoration projects must be maintained for at least five consecutive years. Municipalities must survey landholders (owners, usufructuaries or administrators) with watercourses so that deficits can be registered and restoration planned, and those identified must restore the strips within their boundaries.
Cost to do it: Restoration with native species and five years of maintenance are at the landholder's expense; nurseries promoted by INFONA may offer differentiated prices.
Example: A ranch whose creek banks were cleared before purchase must replant the riparian strip that INFONA requires and keep it for at least five years. / Riparian restoration is an inherited liability that travels with the land; check satellite imagery of creek banks before buying.Ley Nº 4241/2010 de restablecimiento de bosques protectores de cauces hídricos dentro del territorio nacional, Art. 1, 2, 4, 6, 9, 11 and 12, 2010-12-20 official text · verified 2026-10-28
Cost to do it: Restoration with native species and five years of maintenance are at the landholder's expense; nurseries promoted by INFONA may offer differentiated prices.
Example: A ranch whose creek banks were cleared before purchase must replant the riparian strip that INFONA requires and keep it for at least five years. / Riparian restoration is an inherited liability that travels with the land; check satellite imagery of creek banks before buying.Ley Nº 4241/2010 de restablecimiento de bosques protectores de cauces hídricos dentro del territorio nacional, Art. 1, 2, 4, 6, 9, 11 and 12, 2010-12-20 official text · verified 2026-10-28
5. Environmental impact assessment for rural projects. An environmental impact assessment is required for farming, ranching, forestry and poultry operations, for land clearing (desmontes) and excavation, for human settlements, colonization and urbanization, and for exploiting native forests, among others. The Ministry of Environment issues a Declaración de Impacto Ambiental; an assessment with no declaration within 90 days is approved without further steps.
Cost to do it: Consultant fees and any Ministry charges were not verified.
Example: A new cattle operation in the Chaco files an environmental assessment for its land clearing plan; if MADES is silent for 90 days, it is approved by law (the Eastern Region ban still applies there). / Budget at least 90 days of statutory review before any clearing or new farm infrastructure.Ley Nº 294/1993 de Evaluación de Impacto Ambiental, Art. 7 lit. a, b, o and r, and art. 10, 1993-12-14 official text · verified 2026-10-28
Cost to do it: Consultant fees and any Ministry charges were not verified.
Example: A new cattle operation in the Chaco files an environmental assessment for its land clearing plan; if MADES is silent for 90 days, it is approved by law (the Eastern Region ban still applies there). / Budget at least 90 days of statutory review before any clearing or new farm infrastructure.Ley Nº 294/1993 de Evaluación de Impacto Ambiental, Art. 7 lit. a, b, o and r, and art. 10, 1993-12-14 official text · verified 2026-10-28
6. Forest Law sanctions. Breaching approved harvest plans, felling trees or extracting resin or bark without authorization, ignoring the authority's orders, false declarations, causing forest fires and grazing in forests without authorization are infractions, punished with fines, confiscation of products, suspension of harvest permits and disqualification. The Forest Law sets fines of 1,000 to 500,000 guaraníes, not exceeding the product's value; these nominal 1973 amounts have not been updated in the law, which is why the heavier consequences now come from Ley 6676/2020 and environmental criminal law.
Cost to do it: Statutory fines of PYG 1,000 to 500,000 (under US$100); confiscation and permit suspension are the material sanctions.
Example: Timber cut without a permit is confiscated and the operator's permits can be suspended, whatever the size of the nominal fine. / The maximum Forest Law fine of PYG 500,000 is about US$85.20; under Ley 6676/2020, unauthorized conversion in the Eastern Region carries 3 to 8 years in prison.Ley Nº 422/1973 Forestal, Art. 53, 54 and 55, 1973-11-23 official text · verified 2026-10-28
Cost to do it: Statutory fines of PYG 1,000 to 500,000 (under US$100); confiscation and permit suspension are the material sanctions.
Example: Timber cut without a permit is confiscated and the operator's permits can be suspended, whatever the size of the nominal fine. / The maximum Forest Law fine of PYG 500,000 is about US$85.20; under Ley 6676/2020, unauthorized conversion in the Eastern Region carries 3 to 8 years in prison.Ley Nº 422/1973 Forestal, Art. 53, 54 and 55, 1973-11-23 official text · verified 2026-10-28
| Law | Promulgated | Ban period |
|---|---|---|
| Ley 2524/2004 | 13 December 2004 | Initial two years |
| Ley 6256/2018 | 14 December 2018 | Two years |
| Ley 6676/2020 | 11 December 2020 | Ten years, to 11 December 2030 |
Eastern Region zero deforestation laws (BACN texts)
Worked example
- A buyer looks at a 1,000 ha Eastern Region farm at US$5,000 per hectare (US$5,000,000, PYG 29,341,550,000) with 300 ha of native forest.
- The 300 ha cannot be cleared before 11 December 2030; at least 250 ha (25 percent) must stay forest even after that under the Forest Law; and any cleared creek banks must be restored.
- If the 300 ha of forest have a fiscal value of PYG 1,500,000,000, removing them from the property tax base under Ley 6676 art. 6 saves PYG 15,000,000 (about US$2,556) a year, plus any surcharge, with an INFONA certificate and a sworn statement.
Step by step
- Map forest cover with recent satellite imagery and compare with the 2 ha, 50 percent canopy and 60 trees per hectare definition.
- Check that the property keeps 25 percent natural forest (if over 20 ha in a forest zone) and that riparian strips are intact.
- Ask the seller for INFONA registration, management plans, harvest reports and environmental declarations for past clearing.
- In the Eastern Region, assume no new conversion until 11 December 2030; plan production on already open land.
- File the environmental impact assessment for any new farming, ranching, forestry or clearing project and allow 90 days.
- Apply for the forest exemption from property tax where the forest is kept intact and unexploited.
Common traps
- Clearing done by a former owner without permits is an inherited problem: restoration duties and riparian deficits stay with the land.
- No authority can lawfully issue a conversion permit in the Eastern Region while the ban runs; a permit dated after 11 December 2020 that allows conversion there is a red flag.
- Forest reserves and approved forest areas are also what keeps a large holding outside the unproductive latifundio category, so they protect the title as well as meeting environmental rules.
- Timber sales without INFONA waybills are seizable, whatever the paperwork between buyer and seller.
Sources
- Ley 422/1973 Forestal (BACN)
- Ley 6676/2020 zero deforestation, Eastern Region (BACN)
- Ley 2524/2004 (BACN)
- Ley 4241/2010 riparian protective forests (BACN)
- Ley 294/1993 Evaluación de Impacto Ambiental (BACN)
- Banco Central del Paraguay, reference exchange rates
Related pages
- real-estate/rural-land-agrarian-statute-and-expropriation
- real-estate/property-tax-and-surcharges
- real-estate/indigenous-lands-and-community-claims
- regulation/regulation-essentials
- sectors/energy-mining-and-key-sectors
- /country/paraguay/
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