FAQ
The Help Center
Thinking about investing in or moving to Paraguay? Here are answers to some of the most frequently asked questions we receive:
CAN FOREIGNERS OWN PROPERTY IN PARAGUAY DIRECTLY?
Yes, a foreigner can legally purchase and own real property in Paraguay regardless of whether or not they are residents of the country. That said, if a non-citizen non-resident subsequently sells property they own in Paraguay, the taxes withheld by the notary will be higher than someone that has a Paraguayan ID. A foreigner can also establish a corporate entity in Paraguay that can hold title to property, but the requirements and tax consequences will vary depending on the circumstances.
DO I NEED A REAL ESTATE LAWYER AS WELL?
All title transfers in Paraguay must be processed by a notary, and the notary is customarily selected by the purchaser. The personal representation by a lawyer is not required by law in Paraguay, but we always recommend that foreign investors seek out the level of legal representation that makes them feel comfortable and protected. We have trusted lawyers and notaries that we can recommend to review your transactions.
DO I NEED TO BE PHYSICALLY PRESENT TO CLOSE A REAL ESTATE TRANSACTION IN PARAGUAY?
No, you may also register a power-of-attorney for a trusted representative to sign the closing documents on your behalf. We always recommend the strongest levels of caution when granting someone a power-of-attorney. Never grant a power-of-attorney to someone that you do not know and trust.
IS IT TRUE THAT THERE ARE NO TAXES IN PARAGUAY?
No, while tax rates in Paraguay are very low in comparison to many countries in the world, various levels of taxation do exist, and you will be required to pay taxes on your investments.
CAN DEVELOPMENTS UNDER CONSTRUCTION REALLY RESULT IN RETURNS OF 10% OR MORE?
Not exactly. While these levels of returns are not unheard of, they are not common, and they are almost certainly gross instead of net. Whenever a developer presents numbers that seem too good to be true, take them with a grain of salt and consult with a trusted real estate professional to analyze the reality. Good projects purchased at a good price will likely net between 5% and 7% annually in the rental market. In terms of resale value, popular products purchased during construction frequently see a 20% mark-up once the product is ready for delivery.
ARE YOU A LICENSED REAL ESTATE PROFESSIONAL?
Yes and No - Paraguay does not have a licensing process for real estate agents or brokers. That said, I am a licensed Real Estate Broker in the US State of Massachusetts, and I try to impart my professional knowledge from the US in the training of the agents at Century 21 Experience. The Paraguayan market lacks a great deal of professionalism, so it is important to evaluate the knowledge and experience of the agent with whom you choose to work.
WHAT TYPES OF PROPERTIES DO YOU WORK WITH?
Whatever type of property you are looking for in Paraguay, we can help you find it! Apartments (both finished and under construction), houses, townhouses, rural properties, land for development, vacation homes, commercial properties: you name it, we've got it!