Allo' Expat Paraguay - Connecting Expats in Paraguay
Main Homepage
Allo' Expat Paraguay Logo

Subscribe to Allo' Expat Newsletter
Check our Rates
   Information Center Paraguay
Paraguay General Information
Paraguay Expatriates Handbook
Paraguay and Foreign Government
Paraguay General Listings
Paraguay Useful Tips
Bringing Pets
Driving in Paraguay
Domestic Help
Business Etiquettes
Social Customs & Etiquettes
Paraguay Education & Medical
Paraguay Travel & Tourism Info
Paraguay Lifestyle & Leisure
Paraguay Business Matters
  Sponsored Links

Check our Rates

Housing in Paraguay

Buying a Property

There are no restrictions on the ownership of property by foreigners, who may also engage in commerce or industry without limitations.

For a property to be titled in Paraguay, the following procedures are normally followed:

In buying/selling of real estate, the Notary Public plays a very important role. Generally, Notary fees vary from 0.75-2% of the property value, plus 10% VAT.

The Notary Public obtains the following certificates in order to prepare the Transfer of Deed:
• Tax Compliance from the Ministry of Finance;

• Non-Encumbrance and Free Disposability of Assets from the General Direction;
• Tax Clearance from the Municipality; and

• Cadastre or Zoning Certificate from the National Service of Cadastre.

The above-mentioned certificates cost around PGY228,406 or $36.

Once the Transfer of Deed has been notarised, a Municipal Tax on transfers will be paid. It is 0.3% of the property price, if the property is located in Asunción or 0.2% if located in other cities in the country.

The last step in the titling of the property is the registration of the notarised documents at the Public Registry by the Notary Public. Registration fee is PGY200,000 ($36) and Administrative expenses are PGY187,000 ($32). Lastly, there is a Judiciary Tax of 0.74% of the property value.

The whole process of registering a property can be completed in around 48 days.

Renting a Property

Rents can be set freely and also increased by agreement between landlord and tenant. There is no rent tribunal. It is possible to agree cost-of-living rent increases according to official rates, or to agree any other type of increase.

No maximum security deposits are set by law. In practice it is normal for the tenant to leave a deposit of a month for rent (rental deposit) and another month for possible outstanding expenses (security deposit).

Periods of rent can be set freely, but no longer than five years. Contracts for an indefinite period expire at five years.

Generally, contracts include a penalty clause related to termination before the end of a contract period on the initiative of the tenant, most commonly stipulating the loss of the rental deposit. The landlord cannot terminate the contract before its end.





copyrights ©
2015 | Policy