How to Buy Property in Paraguay as a Foreigner

Required documentation

To start the property purchase process in Paraguay, a foreign citizen needs to gather the following documents:

• Valid passport — the primary identification document. It must have at least 6 months of validity remaining.
• RUC (Tax Identification Number) — a mandatory tax number obtained at the SET (Undersecretariat of State for Taxation). The process is straightforward and can be done in person or through a legal representative.
• Power of attorney (for remote purchases) — granted in your home country before a notary public and apostilled according to the Hague Convention. It must specify the authority to purchase real estate in Paraguay.
• Proof of source of funds — international bank transfer, bank statement, or equivalent documentation proving the lawful origin of funds.
• Criminal background certificate — may be requested by the notary to comply with anti-money laundering regulations.

Foreigner's rights — Article 109

This means that as a foreigner you have exactly the same property rights as a Paraguayan citizen. There are no special restrictions, quotas, or limitations for acquiring urban or rural real estate.

• You can buy land, apartments, houses, commercial premises, or rural properties.
• No residency or visa is required to be a property owner.
• The title deed is registered in your name with full legal validity.
• You can sell, rent, mortgage, or bequeath the property under the same conditions as a Paraguayan citizen.

Notarial process

The involvement of a public notary (escribano) is mandatory in Paraguay to formalize a real estate purchase. The notarial process follows these stages:

1. Title study — the notary verifies the chain of ownership for the past 20 years, confirming that the seller is the legitimate owner and that there are no liens, seizures, or litigation.
2. Conditions report — a certificate of ownership conditions is obtained from the Property Registry, confirming the current legal status of the asset.
3. Drafting the deed — the notary drafts the public deed of sale, detailing the parties, the property, the price, and the payment terms.
4. Signing before the notary — the parties (or their attorneys-in-fact) appear before the notary to sign the deed. Identities are verified and the transaction is recorded.
5. Protocolization — the deed is incorporated into the notarial protocol, giving it a certain date and authenticity.

Property registration

Once the deed is signed, it must be registered at the General Directorate of Public Registries for the transfer of ownership to take effect against third parties.

• Registration timeframe: generally between 15 and 30 business days, depending on the Registry's workload.
• Outcome: a new folio (registration number) is issued in the buyer's name, which constitutes the definitive proof of ownership.
• Cadastre: the property's cadastral information is also updated at the corresponding municipality.

Taxes and transaction costs

* Percentages are indicative and may vary depending on the transaction and municipality.