Paraguay: Guide to Buying Costs and Procedures
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Official total transaction costs are low in Paraguay
How high are realtors’ and lawyers’ fees in Paraguay? What about other property purchase costs?
Transaction Costs |
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| Who Pays? | ||
| Judiciary Tax | 0.74% | buyer |
| Agent's Fee | 5.00% | buyer |
| Notary Fee | 0.75% – 2% (+10% VAT) | buyer |
| Municipal Tax on Transfers | 0.30% | buyer |
| Costs paid by buyer | 5.74 % | |
| Costs paid by seller | 1.125% - 2.5% | |
| ROUNDTRIP TRANSACTION COSTS | 6.86% – 8.24% | |
| See Footnotes Source: Global Property Guide |
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How difficult is the property purchase process in Paraguay?
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% - 2.00% 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 PGY 228,406 or US$36.
Once the Transfer of Deed has been notarized, a Municipal Tax on transfers will be paid. It is 0.3% of the property price, if the property is located in Asuncion 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 notarized documents at the Public Registry by the Notary Public. Registration fee is PGY200,000 (US$36) and Administrative expenses are PGY187,000 (US$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.
Footnotes to Transaction Costs Table
The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.
Currency:
Paraguay uses Paraguay Guarani. Exchange rate is at US$1=PYG5,791.62 as of 22nd June 2006.
Paraguay - more data and information
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