Embedded Files
Paraguay concludes 2025 by solidifying its position as South America’s most competitive destination for tax residency and capital preservation. The real estate sector is currently undergoing a historic transformation driven by the launch of the Unified National Registry (RUN), which merges cadastral and registry data into a single digital platform to provide unmatched legal security for property owners.
This institutional leap is matched by aggressive fiscal incentives, including a 52% reduction in property taxes for Asunción’s historic center, and a macro environment where rental yields reach up to 12% in USD. With record-breaking remittances fueling market liquidity and the rise of massive institutional investment funds, Paraguay offers a unique combination of stability, transparency, and high growth for those seeking a permanent residency or citizenship pathway.
Starting January 14, 2026, Paraguay enters a new era of administrative efficiency with the implementation of the Unified National Registry (RUN). This reform, established by Law No. 7424/24, integrates the National Cadastre and the General Directorate of Public Registries into a single, coherent digital system. Historically, these entities operated separately, leading to inconsistencies and title duplications; the RUN eliminates these barriers by providing a georeferenced database that links legal titles with precise physical measurements.
For individuals seeking residency or citizenship, this system provides a reinforced legal shield for their investments. The RUN virtually eliminates the risk of overlapping titles and real estate fraud, offering "absolute certainty" regarding property limits and ownership. Furthermore, the digital nature of the platform allows for immediate status verification from abroad, significantly reducing administrative costs and the need for physical presence during early-stage due diligence.
This modernization is not merely a technical upgrade but a cultural shift toward transparency. By creating a traceable digital ecosystem, the government is actively combating corruption and reducing the discretionary power of officials. For the international investor, this means a more predictable, institutionalized environment that follows global best practices, making Paraguay a safer harbor for long-term capital.
Source: Ultima Hora
The Executive Branch has issued Decree 5181/2025, setting a 4.1% adjustment in the fiscal values of urban and rural properties for 2026. This percentage is based on the accumulated inflation (CPI) reported by the Central Bank of Paraguay through November 2025. These values serve as the tax base for the real estate tax collected by municipalities, which maintains a highly attractive flat rate of 1%.
A major highlight for those looking to establish a tax residency in the capital is the new "Tax Equilibrium" ordinance (No. 193/2025) in Asunción. This measure unifies the historic center into "Urban Zone 16" (ZU16) and grants a massive 52% reduction in property taxes. By lowering the fiscal value of land in this zone to G. 257,000 per square meter, the city aims to attract fresh investment and repopulate its historic downtown, creating a "prime entry point" for developers and luxury renovators.
These adjustments confirm Paraguay's commitment to a low-pressure tax environment. Even with the annual inflation adjustment, the real estate tax remains a fraction of what is seen in neighboring countries. For foreigners, the ability to acquire property in a capital city with such significant tax breaks and a simplified "Triple Ten" scheme (10% VAT, 10% Income Tax, 10% Corporate Tax) remains one of the strongest arguments for relocating their tax base.
Source: El Cronista
Grupo ECIPSA, a major regional player, has solidified its dominance in Paraguay by delivering the Natania 85 tower in Asunción and breaking ground on Natania 86, a 31-story residential skyscraper. These projects are designed to meet a massive housing deficit in a country where half the population is under 40 years old. The combination of a growing GDP (4-5% annually) and controlled inflation near 4% creates a "perfect storm" for residential appreciation.
Investors are currently seeing annual rental yields between 7% and 12% in USD, far exceeding regional averages. To cater to the international market, developers are offering 360° services that simplify the transition for new residents. These services include remote contract signing, the acceptance of cryptocurrencies, and specialized legal advisory to assist buyers in obtaining their Paraguayan residency alongside their property acquisition.
The market also benefits from a "Plan Double Value Added," which allows investors to buy at pre-construction prices while receiving a 6.5% guaranteed annual return in dollars until the unit is delivered. This model is specifically tailored for those looking to preserve capital in a stable currency while enjoying the benefits of a country that treats foreign and local capital with equal legal standing.
Paraguay has hit a historic milestone with US$ 732 million in annual remittances, equivalent to 1.5% of the national GDP. These funds, primarily coming from Spain (approx. 60%) and the United States, act as a steady engine for the local real estate market. While traditionally used for consumption, a growing percentage of these funds is now being funneled into first-home purchases, particularly apartments and duplexes.
This influx of foreign currency provides significant liquidity and stability to the real estate sector. The constant flow of dollars helps balance the exchange market and ensures a healthy "bottom-up" demand for residential units. For the foreign investor, this means there is always a robust secondary market and a consistent pool of local buyers, which protects the exit value of any property investment.
Government-backed programs like Che Róga Porã are also leveraging these flows, allowing migrants and their families to access properties at competitive rates of around 6.5% annually. This creates a disciplined, formal market where property is the preferred asset for wealth preservation. For a residency seeker, this ensures that the local economy is structurally supported by "fresh" capital, reinforcing the long-term stability of the country's financial system.
The Paraguayan state is demonstrating increased vigilance to protect the integrity of the real estate sector. The Chamber of Deputies recently urged an investigation into judicial measures that favored developers in the Cordillera region, where project activities were suspended by the Ministry of Environment (MADES) to protect vital aquifers. This move highlights a growing commitment to environmental ethics and legal compliance.
Simultaneously, scrutiny is being applied to land grants in the Chaco region near the Bioceanic Corridor. Authorities are investigating potential irregularities in the distribution of fiscal lands to ensure that development aligns with agrarian reform and legal standards. These investigations, rather than being a deterrent, are a sign of a maturing state that is determined to protect the legal security of titles and the sustainability of its natural resources.
For those pursuing permanent residency or citizenship, this institutional oversight is a vital safeguard. It ensures that the market grows on a foundation of "clean" titles and sustainable practices, protecting the value of their property from future legal or environmental challenges. Investing in Paraguay today means entering a market that is increasingly transparent, regulated, and aligned with international standards.
Market Interpretation
The Convergence of Digital Security and Fiscal Predictability
Financial experts view the current Paraguayan landscape as a critical turning point for international capital, characterized by the transition from fragmented administration to a state-of-the-art digital ecosystem. The activation of the Registro Unificado Nacional (RUN) on January 14, 2026, is interpreted as a historic victory for property rights, as it provides a single, georeferenced database that eliminates the risk of overlapping titles. By merging the National Catastre and Public Registries, the state has created a "single source of truth" that allows investors to verify the legal status of any property immediately, significantly reducing the due diligence phase for those seeking residency or citizenship.
Furthermore, the recent 4.1% fiscal value adjustment for 2026 is seen by analysts as a sign of a transparent and predictable tax environment. Because this adjustment is strictly indexed to the inflation reported by the Central Bank (BCP), it reinforces the country’s reputation for macro-stability. When combined with a real estate tax rate of only 1%, Paraguay continues to offer one of the lowest property-carrying costs in the world, making it a prime destination for tax residency and wealth preservation.
Strategic Insight: Organic Liquidity and Ethical Growth
A key factor often emphasized by financial advisors is the "silent engine" of the Paraguayan market: record-breaking remittances. In 2024, the country received US$ 732 million from abroad - equivalent to 1.5% of its GDP - with the majority of these funds being directed toward the purchase of a first home. This flow of "fresh currency" provides the market with structural liquidity and ensures a consistent secondary market for investors, as local demand for housing remains robust and unaffected by regional fluctuations.
Experts also highlight the government’s increasing commitment to environmental and legal ethics as a long-term risk mitigant. Recent legislative scrutiny of judicial measures in Cordillera, aimed at protecting vital aquifers from unregulated real estate extraction, signals to international residents that their investment is situated in a country that values sustainable growth and the rule of law. For high-net-worth individuals, this institutional maturity is a vital safeguard that protects the long-term appreciation of their assets against future legal or environmental challenges.
Conclusion: The Logic of Investing in the "Heart of Stability"
Paraguay has successfully positioned itself as a sophisticated financial harbor. With a GDP growth of 4-5%, inflation near 4%, and a tax scheme that favors the developer and the resident alike, the country is no longer just a regional alternative but a global contender. The combination of rental yields reaching up to 12% in USD and the 52% property tax reduction in Asunción’s historic center (Zone ZU16) creates a unique environment where investors can achieve significant returns while securing a pathway to permanent residency.
Contact Reside Paraguay
Don’t miss the opportunity to align your residency and assets with one of the most stable economies in the region. With developers now offering remote contract signing, cryptocurrency acceptance, and end-to-end advisory for residency and citizenship applications, establishing your footprint in Paraguay has never been more accessible.
Contact our specialized advisory team today to explore how you can benefit from the 2026 tax incentives and secure a property under the new, ironclad protection of the Unified National Registry.
Page updated
Google Sites
Report abuse