Countries › Paraguay › Guide › 11. Real estate and land › Property tax in Paraguay: the impuesto inmobiliario, fiscal values, vacant lot and rural surcharges, exemptions and the clearance certificate

Property tax in Paraguay: the impuesto inmobiliario, fiscal values, vacant lot and rural surcharges, exemptions and the clearance certificate

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

Real estate pays an annual impuesto inmobiliario of 1 percent of the fiscal value set by the Servicio Nacional de Catastro (0.5 percent for a single farm under 5 hectares), arising on 1 January and collected by the municipality, which keeps 70 percent (Asunción 85 percent). Vacant urban lots pay a surcharge of 20 to 50 percent of the tax that rises with years of ownership, and rural owners pay a surcharge of up to 20 percent of the tax according to their total holdings per region. No deed, registration or court step on a property proceeds without the paid tax certificate, while intact native forest in the Eastern Region and planted forests can be taken out of the base.

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

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
Date the annual property tax arises	1 January dateLey 125/1991 art. 56, as of 2026-10-28 · in force
Vacant urban lot surcharge, first 5 years of ownership (share of the tax)	20 %Ley 125/1991 art. 70 (Ley 5513/2015), as of 2026-10-28 · in force
Vacant urban lot surcharge, 15 to 20 years of ownership (share of the tax)	50 %Ley 125/1991 art. 70 (Ley 5513/2015), as of 2026-10-28 · in force
Improvements below this share of land value make a lot vacant	10 %Ley 125/1991 art. 69, as of 2026-10-28 · in force
Top rural surcharge (share of the tax), holdings above 100,001 ha	20 %Ley 125/1991 art. 74 (Ley 5513/2015), as of 2026-10-28 · in force
Share of property tax kept by the collecting municipality (Asunción 85%)	70 %Ley 3966/2010 art. 153, as of 2026-10-28 · in force

The rule

1. The tax and who pays. The impuesto inmobiliario is an annual tax on real estate located in Paraguay, owed by individuals, legal entities and entities in general, and it arises on the first day of each calendar year. Where ownership is split, the usufructuary pays; for estates, co ownerships and marital property it can be claimed from any heir, co owner or spouse, who can then recover from the others; and a property in litigation is still taxed, payable by the possessor. Exempt are, among others, state and municipal property (but not property of decentralized entities doing business), places of worship and charitable or free education property of recognized religious entities, declared historic monuments, diplomatic premises, premises of parties, unions, clubs and similar associations, national parks and ecological reserves declared by law, and property assigned to indigenous communities. Land allotted by the agrarian reform agency is exempt for five years from the allotment. The Executive may cut the tax by up to 50 percent for a given year for natural disasters.
Cost to do it: No registration fee; the tax is assessed by the Servicio Nacional de Catastro and invoiced by the municipality.
Example: A company that owns an Asunción office building on 1 January owes the full year's tax for that year even if it sells in March; the buyer will require the clearance certificate before the deed. / Ownership on 1 January is what counts, so in a sale the parties usually apportion the year's tax in the price; the law ignores that agreement for the clearance.Ley Nº 125/1991 que establece el nuevo régimen tributario, Libro II (Impuesto Inmobiliario), not repealed by Ley Nº 6380/2019, Art. 54, 55, 56, 57, 58 and 59, 1991-12-18 official text · verified 2026-10-28

2. Base and rate. The base is the fiscal value set by the Servicio Nacional de Catastro, split between urban and rural property (urban means within a municipality's urban zone under the Ley Orgánica Municipal). The Executive approves the valuation system by decree each year. For urban property, land and buildings are valued separately per square metre by location, municipal geo economic zoning and the age and type of construction; units in horizontal property and gated communities are valued as their own area plus a proportional share of common areas. Rural land is valued per hectare by agricultural aptitude or opportunity cost, buildings are not added, and rural property may not bear any other municipal tax or fee. Fiscal values are adjusted each year by the CPI change in the 12 months before 1 November, and the Executive may revise the indices every five years. Owners can ask for forest, protected or legally restricted rural areas and poor soils to be taken into account. The rate is 1 percent, or 0.5 percent for rural parcels under 5 hectares that are the owner's only property and are used for farming.
Cost to do it: The tax itself is the cost: 1 percent of fiscal value a year (0.5 percent for small single farms).
Example: A house with a fiscal value of PYG 900,000,000 (land plus building) pays PYG 9,000,000 a year. / That house pays about US$1,534 a year on a fiscal value of about US$153,366; fiscal values are usually below market prices, so the effective burden on market value is lower.Ley Nº 125/1991, art. 60 as reworded by Ley Nº 5513/2015, and art. 61, Art. 60 and 61, 2015-10-23 official text · verified 2026-10-28 · changed: Ley 5513/2015, promulgated on 23 October 2015 and published on 29 October 2015, replaced the gradual move to market value with an annual Executive valuation decree, separate urban land and building values, unit valuation for horizontal property, CPI indexation and a ban on other municipal taxes on rural property; its art. 4 allowed rural bases of up to four times the then current fiscal value in its first year, and its art. 5 repealed Ley 3966 art. 154 and 156.

3. Who collects and where the money goes. The Servicio Nacional de Catastro computes the tax in the name of the municipality where the property lies, and the municipality prints the invoices and collects; property spanning several municipalities pays each pro rata to its area. Catastro keeps 1 percent of the municipality's 70 percent share as a fee. Of what each municipality collects, 70 percent stays with it, 15 percent goes to the department and 15 percent to lower income municipalities; Asunción keeps 85 percent. Municipalities must spend 40 percent on current spending and 60 percent on capital spending.
Cost to do it: No separate fee to the taxpayer.
Example: Of PYG 9,000,000 paid on a house outside Asunción, PYG 6,300,000 stays with the municipality, PYG 1,350,000 goes to the department and PYG 1,350,000 to lower income municipalities. / Because municipalities keep most of the tax, payment and certificates are handled at the local municipality, not at the national tax agency.Ley Nº 125/1991 art. 62 (text of Ley Nº 5513/2015); Ley Nº 3966/2010 Orgánica Municipal art. 153 and 179 (art. 179 text of Ley Nº 5513/2015), Ley 125 art. 62; Ley 3966 art. 153 and 179, 2015-10-23 official text · verified 2026-10-28

4. Surcharge on vacant urban lots. A surcharge on top of the property tax applies to owners (or possessors) of vacant lots (baldíos) in Asunción and in the urban areas of other municipalities. A lot is vacant if it has no buildings or improvements, or if their value is under 10 percent of the land value; the Executive may exclude peripheral zones. The surcharge is a percentage of the tax liquidated on the land value and rises with the years of ownership: 20 percent up to 5 years, 30 percent from 5 to 10 years, 40 percent from 10 to 15 years and 50 percent from 15 to 20 years.
Cost to do it: The surcharge is the cost; building improvements worth at least 10 percent of the land value take the lot out of the vacant category.
Example: An urban lot held for 7 years with a land value of PYG 400,000,000: tax PYG 4,000,000 plus a 30 percent surcharge of PYG 1,200,000, total PYG 5,200,000 a year. / That land bank lot costs about US$886 a year instead of US$682, and the surcharge keeps rising with each 5 year bracket.Ley Nº 125/1991, art. 68 and 69, and art. 70 as reworded by Ley Nº 5513/2015, Art. 68, 69 and 70, 2015-10-23 official text · verified 2026-10-28

5. Surcharge on rural land by total holdings. Rural owners pay an additional percentage on top of the property tax liquidated on their rural land, computed per owner (individual or legal entity) by adding up all their rural property in each region, together with property of the spouse, the marital partnership and minor children. The scale differs for the Eastern Region, the Lower Chaco and the Upper Chaco: individuals pay 0 percent up to 50 ha (Eastern Region), 100 ha (Lower Chaco) or 300 ha (Upper Chaco); legal entities pay 1 percent at the bottom bracket; then 3, 5, 10, 12, 15 and 20 percent as holdings grow (for example in the Eastern Region 3 percent from 50 to 200 ha, 5 percent from 200 to 1,000 ha, 10 percent from 1,001 to 5,000 ha, 12 percent from 5,001 to 20,000 ha and 20 percent above 100,001 ha). The published table has gaps and overlaps between brackets (for example the Eastern Region 15 percent bracket reads 20,001 to 130,000 ha while the 20 percent bracket starts at 100,001 ha), so borderline holdings need a ruling from the municipality or Catastro.
Cost to do it: The surcharge is the cost; it is a percentage of the property tax, not of land value.
Example: A company with 3,000 ha in the Eastern Region at a fiscal value of PYG 15,000,000,000: tax PYG 150,000,000 plus a 10 percent surcharge of PYG 15,000,000, total PYG 165,000,000. / About US$25,561 of tax plus US$2,556 of surcharge, about US$28,117 a year. Holdings are added up per owner and per region, and an individual's include the spouse's and minor children's land.Ley Nº 125/1991, art. 71 to 73, and art. 74 as reworded by Ley Nº 5513/2015, Art. 71, 72, 73 and 74, 2015-10-23 official text · verified 2026-10-28

6. Clearance certificate and forest exemptions. Notaries may not execute deeds that transfer, modify or create real rights without a certificate that the tax and surcharges are paid, and the full tax must be paid before a transfer whatever the parties agree, with the notary jointly liable otherwise; the registry will not record such deeds or declarations of heirs without it, and no judicial or administrative step on real estate, including an adverse possession claim, may proceed without the certificate. Native forest in the Eastern Region is excluded from the taxable base where it is not exploited for economic benefit, the property complies with legal forest reserves and environmental rules (certified by INFONA), the owner is up to date with municipal obligations, and the owner declares under oath that the area will remain intact and reports any change of ownership or loss of forest. Planted forests on forest land are exempt under the conditions set by regulation.
Cost to do it: Certificate charges are municipal and were not verified. The forest exemption requires an INFONA compliance certificate and a sworn statement.
Example: A ranch with 500 ha of intact native forest in the Eastern Region valued at PYG 1,000,000,000 can remove that value from the base, saving PYG 10,000,000 of tax a year plus any surcharge on it. / About US$1,704 a year saved per US$170,407 of forest value, provided the INFONA certificate and sworn statement are in place and the forest is not exploited.Ley Nº 125/1991 art. 64, 65 and 66 (art. 66 text of Ley Nº 5513/2015); Ley Nº 6676/2020 art. 6; Ley Nº 422/1973 Forestal art. 43, Ley 125 art. 64 to 66; Ley 6676 art. 6; Ley 422 art. 43, 2020-12-11 official text · verified 2026-10-28

Eastern Region	Lower Chaco	Upper Chaco	Surcharge on the tax
Up to 50 ha, individuals	Up to 100 ha, individuals	Up to 300 ha, individuals	0%
Up to 50 ha, legal entities	Up to 300 ha, legal entities	Up to 300 ha, legal entities	1%
50 to 200 ha	300 to 1,000 ha	300 to 1,500 ha	3%
200 to 1,000 ha	1,001 to 3,000 ha	1,501 to 5,000 ha	5%
1,001 to 5,000 ha	3,001 to 10,000 ha	5,001 to 15,000 ha	10%
5,001 to 20,000 ha	10,001 to 20,000 ha	15,001 to 20,000 ha	12%
20,001 to 130,000 ha (as published)	20,001 to 100,000 ha	20,001 to 100,000 ha	15%
More than 100,001 ha	More than 100,001 ha	More than 100,001 ha	20%

Rural surcharge on the property tax by total holdings per owner and region (Ley 125/1991 art. 74, text of Ley 5513/2015, reproduced as published)

Years of ownership	Surcharge on the tax liquidated on land value
Up to 5	20%
5 to 10	30%
10 to 15	40%
15 to 20	50%

Vacant urban lot surcharge (Ley 125/1991 art. 70, text of Ley 5513/2015)

Worked example

Urban home: fiscal value PYG 900,000,000, tax PYG 9,000,000 a year (about US$1,534).
Land bank lot held 7 years: land value PYG 400,000,000, tax PYG 4,000,000 plus 30 percent surcharge PYG 1,200,000 = PYG 5,200,000 (about US$886).
Ranch of 3,000 ha in the Eastern Region owned by a company: fiscal value PYG 15,000,000,000, tax PYG 150,000,000 plus 10 percent surcharge PYG 15,000,000 = PYG 165,000,000 (about US$28,117) a year.

Step by step

Get the property's current account number (cuenta corriente catastral) and fiscal value from the municipality or Catastro before buying.
Check that all past years are paid; the buyer's notary will not sign without the clearance certificate.
For rural land, add up the buyer's other rural holdings in the same region (and the family's, for individuals) to see which surcharge bracket applies.
For land with native forest in the Eastern Region, apply to INFONA for the compliance certificate and file the sworn statement to remove the forest from the base.
If improvements change the property (construction, subdivision, merger), expect a revaluation from the following year; Catastro can back assess up to five years if it revalues late (Ley 3966 art. 155, text of Ley 5513/2015).
Diarize the yearly payment with the municipality; the tax arises on 1 January.

Common traps

The BACN text of Ley 3966 still shows art. 154 and 156, but Ley 5513/2015 art. 5 repealed them; use Ley 125 art. 60 as amended for the base.
Late revaluations after construction or subdivision can be back assessed for up to five years.
The rural surcharge is per owner and per region, and an individual's holdings include the spouse's and minor children's land.
A lot with only a fence or a small shed is still vacant if improvements are worth less than 10 percent of the land value.
The rural surcharge table as published has bracket gaps and overlaps; confirm the bracket for borderline holdings in writing.

Sources

← Condominiums and apartment buildings in Paraguay: unit ownership, the building regulation, owners' meetings, registry and taxesSubdividing land, selling lots on instalments and developing housing in Paraguay: municipal approval, land contributions, buyer protections and permits →

Get rule changes weekly

Free. One email a week from The LatAm Thread.

One more step after you press the button: we take you to Substack, where your email is already filled in. Confirm there to start. No spam, unsubscribe anytime, we never share your address. By subscribing you agree to the privacy policy.