Paraguay is quickly gaining attention as one of South America's most underrated real estate markets. With stable economic growth, a favorable legal environment for foreign investors, and a low cost of entry, the country offers significant opportunities for both individuals and institutions.

Whether you're looking to relocate, retire, or simply diversify your portfolio, Paraguay presents an open and promising landscape. This guide provides an updated 2025 overview of the real estate market, average property prices, legal considerations, and where to find listings — all tailored for foreigners.

Can Foreigners Buy Property in Paraguay?

Yes, foreigners can buy property in Paraguay. The country places no restrictions on foreign land ownership.

Foreign nationals are legally entitled to own 100% of property in their own name, whether it’s land, homes, or commercial buildings. Unlike in some countries where a local partner is required or ownership is capped, foreigners in Paraguay enjoy the same property rights as citizens.

There are no limitations on land size, location, or purpose, meaning you can purchase anything from a small apartment in the capital to hundreds of hectares of farmland — entirely in your own name.

This makes Paraguay one of the most open and foreigner-friendly real estate markets in Latin America.

That said, as with any property transaction, it is strongly recommended to work with a qualified notary ("escribano") or attorney who will:

• Verify legal title (propiedad)

• Ensure no debts or liens exist

• Handle official registration in the Registro Público

Why Invest in Real Estate in paraguay?

Based on Paraguayan investment law (notably Ley Nº 117/91, Ley Nº 6380/2019, and constitutional guarantees), and expert commentary from notaries, accountants, and real estate professionals, we believe these are some of the key benefits of buying property in Paraguay as a foreigner:

✅ 1. Full Property Rights for Foreigners

Foreigners can buy and own 100% of property in their own name — no need for a local partner or nominee (unlike some countries in Latin America or Asia).

There are no legal restrictions on land size, usage, or location (with minor exceptions for border zones, which still apply equally to locals).

✅ 2. Very Low Property Taxes

Annual property tax in Paraguay is typically under 0.3% of the fiscal value (which is often lower than market value).

There are no wealth tax or recurring federal real estate tax as in other countries.

🧾 Example: A property worth Gs. 500,000,000 (€53,000 / $62,600) may pay less than €160 / $190 in annual taxes.

✅ 3. No Need for Residency to Buy

You can buy land or property in Paraguay without being a resident.

Many investors purchase land or vacation homes before applying for temporary or permanent residency.

✅ 4. Capital Gains Often Untaxed for Individuals

If you're not in the business of selling real estate, your profit from the sale of a property is generally not taxed or only taxed under specific thresholds. (IRP-RGC may apply but is often not triggered in casual, one-time sales.)

✅ 5. Undervalued Market with High Upside

Compared to neighboring countries, land and housing prices in Paraguay are still low but appreciating steadily.

In cities like Asunción, construction of apartments and office towers is booming, with increasing rental demand and resale value.

✅ 6. High Rental Yields in Certain Areas

Especially in Asunción, rental income can produce gross yields of 6%–10% depending on location and property type.

Demand is growing among locals, expats, and young professionals.

✅ 7. Real Estate Can Support Residency Applications

Owning property and demonstrating local ties can strengthen your case for:

• Temporary Residency

• Permanent Residency

• Fiscal Residency (with additional conditions)

some listing examples

To give you a clear idea of the current real estate market in Paraguay, here are some real listings from a popular platform Infocasas. These examples showcase a range of apartments and houses available in Asunción and surrounding areas, reflecting different price points and property types.

Explore these to get a sense of what you can find, from cozy city apartments to spacious family homes. The prices are shown in local currency, euros, and US dollars for your convenience.

These listings showcase some of the more upscale and well-equipped properties available in Paraguay, but there are also plenty of more affordable and simpler apartments and houses throughout Asunción and other cities. Whether you’re looking for luxury or budget-friendly options, the market offers a wide variety to suit different needs and preferences.

Where to Buy Property in Paraguay: Key Regions

1. Asunción – The Urban Hub

Paraguay’s capital is undergoing a real estate transformation, with high-rise residential buildings, office towers, and mixed-use developments emerging rapidly.

Popular neighborhoods for investment:

• Villa Morra – Modern lifestyle, offices, cafés

• Recoleta – Student and young professional area

• Carmelitas – High-end apartment developments

• Las Mercedes – Gentrifying zone with good rental yields

Rental returns in Asunción can range from 5% to 8% annually, depending on location and property type.

2. San Bernardino – Vacation & Weekend Market

Located by Lake Ypacaraí, San Bernardino is a popular retreat for middle and upper-income Paraguayans. Gated communities and modern homes dominate this area, making it ideal for short-term rentals and vacation properties.

3. Suburbs – Luque, San Lorenzo, Lambaré, Fernando de la Mora

These satellite cities offer a balance between affordability and proximity to Asunción. Real estate here is ideal for families or small investors looking for long-term appreciation.

4. Countryside – Land and Self-Sufficiency

If you're seeking land for farming, eco-tourism, or homesteading, here are some popular Paraguayan cities and towns in the countryside that attract many foreigners, especially expats and retirees:

• Encarnación — A growing city near the Argentine border, famous for its beaches and Carnaval.

• Areguá — Artistic town known for pottery and colonial architecture, close to Asunción.

• Loma Plata — A Mennonite-founded town with a mix of cultures and growing amenities.

• Colonia Independencia — A historic German Mennonite colony known for agriculture, craftsmanship, and a strong community vibe. It’s peaceful, with traditional values.

• La Colmena — Another German colony with a rich cultural heritage, surrounded by beautiful hills and nature.

• Nueva Germania — Founded by German immigrants with a fascinating history; today it’s a small, quiet town attracting visitors for its cultural uniqueness and rural charm.

• Nueva Esperanza — A Japanese agricultural colony with organized farming communities, offering a distinct cultural blend and inviting atmosphere.

These places often have active expat communities and offer a slower pace of life compared to the capital, with plenty of opportunities for investment and settling down.

Where to Find Real Estate Listings in Paraguay

Foreigners often overlook the most active property marketplaces in Paraguay. These include:

• Facebook Marketplace Paraguay – widely used, very active, especially in Asunción and interior regions

• InfoCasas.com.py – major property portal for homes, apartments, and rentals

• Instagram pages of local realtors – many conduct business directly through DMs and WhatsApp

• WhatsApp groups and local connections – still a dominant force in small-town transactions

In summary, Paraguay offers a diverse and growing real estate market with options ranging from modern city apartments to charming countryside homes and unique cultural colonies. Whether you’re seeking an upscale property in Asunción or a peaceful retreat in one of the country’s welcoming rural towns, there is something to fit every lifestyle and budget.

If you're interested in taking advantage of the growing real estate market in Paraguay and are considering making the country your second home, obtaining residency can be a smart step. Residency not only allows for long-term stays and property ownership with ease, but also opens doors to various financial and lifestyle benefits. To learn more about how to apply, be sure to read our guide on How to Get Residency in Paraguay.

Feel free to reach out for personalized advice, property searches, and expert support tailored to your needs.