FAQ: Investing in Real Estate in Paraguay
Are you interested in investing in real estate in Paraguay, but still have questions about the purchase process, taxes, returns, remote procedures, or legal certainty?
Aura Capital supports international investors in their real estate investment projects in Paraguay, using a local, structured, and transparent approach.
Paraguay is attracting more and more investors thanks to its macroeconomic stability, its young population, its still-affordable real estate prices, and its potential for development.
In particular, the IMF projects real growth of 4.2 % for 2026 and inflation of 3.3 %, while the World Bank highlights the country’s attainment of investment-grade status from Moody’s in 2024 and then from S&P in 2025.
Buying Real Estate in Paraguay
Yes, a foreigner can purchase real estate in Paraguay and own it 100%.
For urban properties, such as apartments, houses, or commercial spaces in Asunción, foreign buyers can generally purchase in their own name without being required to be Paraguayan residents. The main restriction applies to certain rural properties located within a security zone of approximately 50 km near the borders.
No, you do not need to be a resident of Paraguay to buy an apartment. A foreign investor can purchase real estate in Asunción even if they live in France, Europe, Canada, the United States, or elsewhere.
However, depending on the investor’s profile, the type of purchase, and the source of the funds, certain documents may be required to comply with banking, tax, or compliance procedures.
Yes, it is possible to buy real estate in Paraguay remotely. In fact, this is the approach many international investors choose.
At Aura Capital, remote support may include project selection, yield analysis, videos of the property or construction site, document review, coordination with the developer, contract monitoring, and support through delivery.
1. Set your budget and investment goals.
2- Select the appropriate neighborhoods and projects.
3- Analyze the rental potential, the price per square meter, and the payment terms.
4- Reserve the property by paying a deposit.
5- Review the documents and the contract.
6- Sign the contract or deed, depending on the type of purchase.
7- Track payments and project progress.
8- Prepare for delivery, rental, or resale.
To ensure a secure purchase, it is important to verify the title deed, any associated fees, the cadastral status, municipal taxes, and the identity of the seller or developer.
Investing in Asunción
Why invest in Asunción rather than in another city in Paraguay?
Asunción is home to a large portion of the rental market, new real estate developments, business districts, shopping centers, restaurants, offices, and sought-after residential areas.
For a foreign investor, Asunción is often the most straightforward market, as the rental demand there is more structured than in secondary cities.
What are the best neighborhoods to invest in in Asunción?
The most sought-after neighborhoods for real estate investment in Asunción are generally:
Villa Morra, Recoleta, Ycuá Satí, Las Lomas, Mburucuyá, Carmelitas, and the areas near Shopping del Sol, Shopping Mariscal, or Paseo La Galería.
These neighborhoods are valued for their accessibility, perceived safety, range of services, appeal to renters, and potential for appreciation.
Is it better to buy a studio or a one-bedroom apartment?
It depends on your strategy.
A studio apartment may be a good option if you're looking for a more affordable option and a short-term rental. A one-bedroom apartment can appeal to a wider range of tenants, including expatriates, young professionals, couples, and long-term renters.
At Aura Capital, we evaluate each option based on purchase price, neighborhood, rental demand, maintenance fees, Airbnb potential, resale liquidity, and the developer’s reputation.
Rental and Airbnb Returns in Paraguay
The rental yield depends on the neighborhood, the purchase price, the type of property, the quality of the finishes, the maintenance fees, the occupancy rate, and the chosen leasing arrangement.
In Asunción, certain well-located properties may offer attractive potential for short- or long-term rentals. However, each project must be analyzed on a case-by-case basis, as a return on investment advertised by a developer is not sufficient to validate an investment.
Yes, Airbnb can work in Asunción, especially in neighborhoods with good locations, close to shopping centers, restaurants, offices, clinics, embassies, and business districts.
Performance depends heavily on location, decor, level of amenities, photo quality, dynamic pricing, and operational management.
Short-term rentals may offer better potential returns, but they require more management: cleaning, check-in, maintenance, photos, guest reviews, price optimization, and monitoring platforms.
Long-term rentals are often more stable, easier to manage, and better suited to certain types of investors.
The best strategy depends on your goal: return on investment, simplicity, appreciation, rental security, or preparing for a future move abroad.
Yes, Aura Capital can assist investors in leasing and managing their properties, depending on the type of project and the chosen strategy.
The goal is to streamline the process from purchase to delivery, furnishing, leasing, and tenant management—especially for investors living abroad.
Off-Plan Purchases in Paraguay
Buying off-plan can be a good option, as the initial prices are often more attractive than those of a property that has already been completed. This can allow you to secure a spot in a project early on, take advantage of staggered payment terms, and aim for a potential increase in value upon completion.
However, not all off-plan projects are created equal. It is important to analyze the developer, the location, the price per square meter, the completion timeline, the quality of construction, the contract, and whether the project aligns with rental demand.
The main risks include delivery delays, quality that falls short of expectations, an unfavorable location, an unreliable developer, unbalanced contractual terms, or an overestimation of rental income.
That is why Aura Capital selects projects using a rigorous approach: analysis of the developer, on-site visits, neighborhood assessment, price comparisons, and verification of payment terms.
A good developer should have a solid track record, a history of completed projects, a good reputation, clear documentation, high-quality construction, and consistent payment terms.
It’s important not to choose the cheapest option. In real estate, a low price can sometimes mask a poor location, lower quality, or higher risk.
Real Estate Taxation in Paraguay
Income from Paraguayan sources may be subject to local taxation. The DNIT states that personal income tax applies in particular to income from Paraguayan sources, with rates of 8 %, 9 %, and 10 % for certain types of personal service income, and 8 % for capital income and gains.
Before investing, it is recommended that you consult with a local accountant or tax advisor to assess your situation, as tax implications depend on your tax residency, the structure of your investment holdings, and the nature of your income.
Yes. The annual property tax is generally calculated based on the property’s assessed value, which is often lower than its actual market value. PwC reports an annual rate of 1 % of the assessed value for property tax.
Fees may include notary fees, registration fees, certain applicable taxes, any bank fees, and translation or power-of-attorney fees if the purchase is made remotely.
The exact amount depends on the type of purchase, the property, the contract, the payment method, and the legal structure. You should therefore always request a detailed estimate before signing.
Legal Certainty and Support
To ensure a safe real estate purchase in Paraguay, it is essential to verify the title to the property, the seller’s identity, any outstanding debts, the cadastral status, municipal taxes, the terms of the contract, and the payment terms.
The local notary, known as an “escribano público,” plays a central role in preparing deeds, verifying documents, and registering property.
The required documents may vary depending on the project, but a foreign investor should generally expect to provide:
- valid passport,
- proof of the source of funds,
- personal information,
- banking documents, if necessary,
- power of attorney if the purchase is made remotely,
- compliance form or KYC form, depending on the issuer or transaction.
Yes, many real estate projects in Paraguay are priced in U.S. dollars. This is particularly common in new construction, off-plan projects, and developments targeting international investors.
However, you should verify the exact payment terms, any transfer fees, bank processing times, and the documents required to verify the source of the funds.
Invest with Aura Capital
Aura Capital assists investors in purchasing real estate in Paraguay, primarily in Asunción.
Our role is to help you understand the market, select suitable projects, analyze returns, compare opportunities, negotiate terms, oversee the process, and prepare the property for rental or resale.
Yes. A large proportion of foreign investors are not physically present in Paraguay at the time of purchase.
Aura Capital makes remote investing easier through structured communication, videos, profitability analyses, on-the-ground monitoring, coordination with developers, and step-by-step guidance.
No. Aura Capital does not offer all available projects. We prioritize a more selective approach, based on location, the quality of the developer, rental potential, reasonable pricing, and alignment with the investor’s objectives.
The goal is not to sell as many projects as possible, but to offer the opportunities that best match each candidate's profile.
The first step is to schedule a free consultation to understand your budget, investment horizon, strategy, and current progress.
Next, Aura Capital can provide you with a selection of suitable projects, along with a clear analysis of their benefits, limitations, and points to watch out for.
Investing in Paraguay with Local Support
Investing in real estate in Paraguay can be an attractive opportunity to diversify your portfolio, gain access to a developing market, and establish a presence in growing urban areas such as Asunción.
However, a good investment does not depend solely on the country. It depends primarily on the choice of neighborhood, the developer, the purchase price, the rental strategy, the quality of the lease agreement, and local support.
At Aura Capital, we support French-speaking and international investors with a transparent, local, and personalized approach.
Schedule a call with Aura Capital
Are you interested in investing in real estate in Paraguay, comparing different options, or scheduling a meeting with our team?
Contact us so we can assist you.
Aura Capital
Real estate agency specializing in real estate investment in Paraguay
Guido Boggiani Avenue, San Cristóbal neighborhood
Asunción, Paraguay
In-person or remote meetings
- contact@auracapital.com.py
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