The cost of buying property in Paraguay: taxes & fees
Buying property in Paraguay can be an attractive option for those seeking a new home or investment opportunity. Understanding the costs involved is essential to make informed decisions.
This guide provides an overview of the one-off purchase costs, ongoing expenses, and other factors to consider when buying property in Paraguay. It's crucial to consult official sources and a qualified local advisor for precise information.
One-off Purchase Costs
When purchasing property in Paraguay, buyers should budget for several one-off costs. These typically include transfer taxes, notary fees, registration fees, and legal/conveyancing fees.
The total of these costs generally ranges from 5% to 8% of the property purchase price. However, specific percentages can vary, so it's important to confirm these details with local professionals.
Transfer Tax and Equivalent Costs
Paraguay has a transfer tax that is payable when you buy property. This fee is usually calculated as a percentage of the property's value. It’s best to verify current rates as they can change.
In addition to the transfer tax, buyers should prepare for notary fees, which are essential for the legitimacy of the transaction.
Legal and Notary Fees
Legal fees for property purchases in Paraguay can fluctuate depending on the complexity of the sale and the lawyer's experience. It's common to allocate approximately 1% to 2% of the property price for legal costs.
Notary fees are also part of the process; they are required for the signing and execution of the sales contract and other related documents.
Ongoing Costs of Property Ownership
Once you've acquired property, there are ongoing costs to consider. This includes annual property taxes, community or condominium fees, utilities, and possibly insurance.
Property tax rates can vary widely, but as a general guide, you might expect to pay around 1% of the property's assessed value annually.
Community or Condo Fees
If you purchase a condo or a property in a community, there may be additional fees for maintenance, management, and amenities. These charges will vary based on the property’s location and facilities.
It is advisable to inquire about these fees during the purchasing process to avoid unforeseen expenses.
Example Calculation
To illustrate, let’s consider a typical property price in Paraguay of approximately $100,000. If we assume total purchase costs of around 7%, you’d budget about $7,000 for one-off fees.
Your overall estimated costs, including purchase price and fees, would be about $107,000.
Mortgage Costs for Non-Residents
Obtaining a mortgage in Paraguay as a non-resident can be more challenging than for residents. Many banks may require a larger deposit, and interest rates may vary.
It is recommended to consult with financial institutions and mortgage brokers in Paraguay to understand the terms and conditions.
Frequently asked questions
What is the average property purchase tax rate in Paraguay?
The transfer tax generally ranges from 5% to 8% of the property purchase price. Confirm with local authorities for current rates.
Are legal fees expensive when buying property in Paraguay?
Legal fees typically amount to around 1% to 2% of the property price, but they can vary based on specifics of the sale.
What ongoing costs should I expect after purchasing property?
Ongoing costs may include annual property tax, community fees, utilities, and insurance, which can vary widely based on the property.
Can non-residents get a mortgage in Paraguay?
Yes, but it may involve higher deposits and varying interest rates. Consult local banks for specific requirements.
How can I check official property-related regulations in Paraguay?
It's best to consult local real estate experts, legal advisors, and official government resources for accurate and up-to-date information.
This guide is general information, not legal, tax or immigration advice. Rules change — verify the current position with official sources and a qualified professional before acting. Last reviewed September 2026.