Paraguay is one of the most underrated places on the investment map of South America. The country features a stable economy, low taxation, and a dynamically developing real estate market. Given the still attractive prices and growing demand, investing in real estate in Paraguay can be not only safe but also very profitable.
Why Invest in Real Estate in Paraguay?
- No restrictions for foreigners – foreigners can freely acquire property ownership with just a passport, no residency required.
- Stable economy and currency – relatively low inflation and predictability in the legal-financial system. The average inflation over the last 10 years is 4.2% in Gs. (Guarani).
- Growing rental demand – especially in Asunción and rapidly developing districts such as Luque.
- Low property taxes and rents – annual fees for property ownership are very low, taxes are around 0.5% to 1% of the property’s purchase value. For an apartment worth $100,000, we pay $500. Rental fees in apartments usually range from $1.2 to $1.6 per m². In practice, for a 90m² apartment, we pay an average of about $117 per month.
- The possibility to purchase both investment and residential properties
How Much Do Apartments Cost?
Apartment prices in Paraguay are still very attractive:
- In prestigious districts of Asunción, such as Villa Morra, Carmelitas, Recoleta, Mburucuyá, Ykua Satí – on average $1900–2400/m²
- In developing districts, such as Las Mercedes or near the border of Luque with Asunción – $1300–1700/m²
📌 Note: The above prices relate to the secondary market, which is less popular in Paraguay. Most investors choose to buy at the so-called “en pozo” stage.
What Standard Do New Apartments Have?
In Paraguay, the so-called “developer’s state” means that the apartment is fully finished – with flooring, a fully equipped bathroom and kitchen (with fixtures, tiles, and cabinetry).
The buyer only needs to furnish the apartment for it to be ready for living or renting.
Purchase “en pozo” – A Popular Investment Form
Buying “en pozo” (at a very early stage of construction) is akin to the “hole in the ground” reality in Polish terms. The developer has the plot and a construction plan, and investors can purchase the property much cheaper.
Main advantages:
- Price lower by 20–30% compared to the secondary market
- High appreciation in value after the building is completed
- Payment spread over 2–3 years (the duration of the construction)
- Initial deposit from 20% of the property’s value
- Financial plans and payment schedules are negotiable with the developer
What About the Risks?
Purchasing during construction carries potential risks, such as the developer’s insolvency or non-completion of the investment. Therefore, we offer our clients the opportunity to purchase:
🔐 Investment Insurance – cost around 3% of the property’s value, guaranteeing 100% refund of funds in case of the developer’s bankruptcy, fraud, or project abandonment.
What About Land Prices?
Land prices in Paraguay have significantly increased in the last 5 years, especially in rapidly urbanizing locations like Luque. Currently, land prices vary greatly depending on the location:
- Villa Morra, Mburucuyá, Molas López – up to $1500/m²
- Luque (border with Asunción) – $600–800/m²
- Las Mercedes – $350–700/m²
- Nueva Asunción (e.g., DELTA) – approx. $200/m²
The increase in prices is driven by the influx of foreign capital and limited availability of well-located plots. Despite this, Paraguay still offers one of the best price-to-growth potential ratios in the region.
What Returns Can Be Expected from Property Rentals?
The return on investment in Paraguayan properties depends on many factors – primarily on the rental strategy, location, the quality of the finish, and the purchase price.
Two main rental models:
- Short-term rentals (e.g., Airbnb)
- Most commonly applied in districts of Asunción such as Carmelitas, Manora (near Shopping del Sol), Villa Morra, Ycua Sati.
- Returns reach even 9–14% annually with a well-managed apartment
- Requires slightly more involvement or cooperation with our management company
- Long-term rentals
- More passive, stable model
- Average returns of 4–8% annually, depending on the standard and location
📊 The average return on investment (ROI) in Paraguay ranges from 4% to even 15% annually, but it all depends on:
- purchase price – the lower and more strategic, the better the return
- quality of the finish – modern and functional apartments rent faster
- negotiation skills and source of purchase
❗Buying a property at regular market price through local intermediaries practically eliminates the chances of above-average returns. Margins and commissions “eat up” the investment potential right from the start, and advice often boils down to selling – not real risk assessment or profitability.
Thus, it is essential to act with an experienced partner who knows the local market from an investor’s perspective, not a seller’s.
What About “ocupados” and Owner Protection?
In countries like Spain or even Poland, property owners often struggle with the problem of unfair tenants, who are difficult to evict – even despite non-payment. The situation in Paraguay is quite different.
✅ The law is on the side of the owner
In the case of non-payment or violation of contract terms:
- The owner has the right to quick eviction
- Proceedings are short, uncomplicated, and enforced without lengthy court cases
- It is possible to recover the property in a relatively short time, provided the contract contains the appropriate provisions and has been formally signed
📌 Thus, investing in rentals in Paraguay is much safer than in many European countries – and does not carry the risk of years-long “occupying” of the property by the tenant.
If you use our assistance – we provide support in preparing the rental agreement, which will be fully compliant with local law and secure your interests.
Why Work with Us?
✅ Access only to verified developers
We cooperate only with reliable development companies from which we have personally purchased apartments. These are partners whose projects we know firsthand and trust – we do not promote unverified investments.
✅ We are not brokers or a sales agency
We do not earn on “higher sales.” Our approach differs from local intermediaries, who often:
- will not advise against risky purchases because commission is more important
- have never bought property themselves, yet advise others
✅ We have our own properties
We have a portfolio of apartments and premises that we actively manage. We invest alongside our clients. Our goal is long-term cooperation, not a one-time transaction.
How Do We Help?
- We search for and select investment offers
- We verify the legal status of the property (due diligence)
- We negotiate terms with the developer
- We provide legal support with the Colab Abogados law firm
- We translate documents and support the investor at every stage
- We help manage the property after purchase (rental, fees, administration)
Does Purchasing a Property Help with Residency?
Purchasing a property is not required to obtain residency, but can support and facilitate it – especially when opening a bank account or legalizing your stay.
📌 You do not need to be a resident to purchase property – just a passport is required. Foreigners can freely acquire property in Paraguay.
👉 However, it is advisable to hold residency if you plan to sell in the future, as residents are subject to a substantially lower tax rate on capital gains.
How Can Payment for a Property Be Made?
The official currency of Paraguay is guarani (PYG), however, all properties are valued and sold exclusively in US dollars (USD).
Why?
- Your assets are protected against inflation of the local currency
- A property priced in USD means greater stability and assurance of value
- The market operates with a global currency, facilitating sales and financing
Accepted forms of payment:
- SWIFT transfer from an account in Poland or another country – 2–3 working days
- Cash – directly in Paraguay or in the presence of a notary
- Stablecoins (USDT / USDC) – commission of 2–4%, a fast and secure option
Can I Buy a Property Remotely?
Yes – buying property remotely is fully legal and safe.
How does it work?
- The contract can be signed electronically (e.g., via DocuSign)
- Alternatively: the developer signs the document in the presence of a Paraguayan notary, who certifies the signature and authenticity of the contract, then sends you the scan
- You sign the document on the foreign side, maintaining full legal validity
- During a later visit to Asunción, you can go to the notary for bilateral certification of signatures if you wish – but it is not required
📌 A contract signed this way has full legal force and also protects you in case you utilize investment insurance.