The market, the taxation, the neighborhoods, the strategies, the yields, and the risks. Everything you need to weigh before investing, without the inflated talk. Use the table of contents to go straight to what interests you.
Paraguay only taxes income generated within its borders, prices per square meter remain well below neighboring capitals, and a net yield of 5 to 10% is realistic depending on the strategy chosen. The market isn't risk-free (we detail those risks further down), but the window stays open as long as prices haven't caught up with the region.
Paraguay only taxes income generated within its territory. What you earn elsewhere in the world is none of its business. It's written into the law, not into some exotic free-trade zone.
In practical terms, here are the current rates for a real estate investor:
This information is provided for guidance only. Your personal tax situation depends on your country of residence and any applicable tax treaties. Consult a tax advisor before making any decision.
That's where the opportunity lies. Paraguay is investment grade, its growth is projected at around 4.5% for 2026 (BCP) and its long-term average sits around 4%, while price per square meter remains well below Buenos Aires, Santiago, or Lima.
Depending on the area and standard of the building. Up to around $2,000/sqm on the most recent projects. In comparable central neighborhoods of Buenos Aires, Santiago, or Lima, prices generally start around $3,000 to $3,500/sqm.
Buying before completion means acquiring below market value, with payments spread out over the construction period. On the Civis Aether project, for example, MOA secured real purchase prices starting at $2,000/sqm, against a target value of $3,000/sqm at delivery (2030).
According to a survey of 50 market players (developers, agents, managers), well-positioned apartments show 85 to 90% real occupancy. The 52% RDNA figure includes overpriced or inactive listings.
About 6.5 million inhabitants (INE, 2026 projection), with a median age of 29 (compared to 42 in France): a young, growing population that fuels rental demand, particularly around Asunción.
About 40,600 residency permits granted in 2025 (Migraciones), up from 29,124 in 2024, nearly +40% in one year. The inflow of Argentine and Brazilian capital is reinforcing rental demand.
Of the 50 professionals surveyed: 63% see the market as expanding, 33% see a balanced supply situation, 4% see a recovery. Two-thirds believe this momentum will last another 5 years or more.
Not all neighborhoods are equal for an investor. Here are the areas with the strongest rental demand and active development.
A quiet, family-oriented neighborhood, home to MOA's offices. Buildings capped at 6 to 7 floors, with occupancy reported at 100% on existing buildings. Strong demand, little new supply.
High-end shops, restaurants, a more international feel. Building height capped at 7 to 8 floors, which limits supply and supports prices. Ideal for long-term rentals and expats.
The strongest current construction activity and the highest price per square meter in Asunción. Very central, popular for short-term Airbnb. Less recommended for year-round living (heavy construction traffic).
Identified by a majority of the 50 professionals surveyed as the area with the strongest potential over 5 years. Land acquired around 2011 in Madame Lynch for $2,000 to $3,000, worth around $30,000 today (x15). A more accessible entry budget.
There's no single best strategy. There's yours, depending on your timeline, your tax situation, and what you expect from this market.
You buy during construction, at a price below the market value at delivery. You resell at delivery or shortly after, pocketing the difference.
On the Civis Aether project, for example, the gap between the real purchase price obtained by MOA (starting at $2,000/sqm) and the target value at delivery in 2030 ($3,000/sqm) represents an appreciation of around 50%. These projections aren't guaranteed, this is simply the market logic at this stage of development.
Suited to:
You buy a completed property (or one nearing completion), furnish it, and put it on the short-term or long-term rental market. The goal: recurring net income on your invested capital.
The Asunción rental market is driven by rising immigration, a young population, and demand from digital nomads. Professional managers report real occupancy rates of 80 to 90% on well-positioned, well-furnished properties.
Suited to:
The whole market advertises 8 to 12%. That's often gross, before fees, taxes, and vacancy. We think in net terms, and on the total cost invested (property price plus acquisition costs plus furnishing), not just on the price of the apartment. We present it in three levels: gross yield, net after fees, then net after tax.
Depending on the strategy: around 5 to 7% net for long-term rentals, and 8 to 10% net for short-term rentals (Airbnb) when well managed. Short-term rentals offer higher gross rent, but more variable costs (management, cleaning, platforms, furniture renewal) and vacancy. The right choice depends on your property, your neighborhood, and your manager.
This example is for illustration. On your specific property, we'll give you the same breakdown with your real numbers, before you invest a single euro.
This isn't a trend. It's a convergence of macroeconomic signals that have been confirming themselves for several years.
Paraguay has joined the small circle of South American countries rated investment grade by the major international rating agencies. That's exactly what institutional funds look at when deciding to enter a market.
Growth projected at around 4.5% for 2026 by the Central Bank of Paraguay (BCP), one of the most dynamic in South America. Inflation projected around 3.5%, within the official target. Construction accounts for around 7% of GDP.
A young, demographically growing country: median age of 29 (compared to 42 in France), for a population of around 6.5 million (INE, 2026 projection). Construction and real estate are following that momentum.
29,124 residency permits granted in 2024, around 40,600 in 2025 (Migraciones), nearly +40% in one year. The inflow of capital and residents from Argentina, Brazil, and French-speaking countries is feeding rental demand and supporting prices.
The route linking Brazil to Chile through Paraguay is expected to cut transit time by 30% compared to the Panama Canal. A major logistics investment that repositions the country in continental trade.
The city is running a renovation program for the historic center (underground cabling, the Costanera, mixed-use projects), with 2037 as a symbolic horizon. Public investment is supporting the value growth of developing neighborhoods.
No market is risk-free. Knowing the risks is already investing better. Here are the three points we always put on the table.
They happen, like everywhere. Some developers (including Civis) provide compensation for each working day of delay, but it's not systematic. We favor developers with a solid delivery track record.
If you buy off-plan for capital appreciation, nothing guarantees the market will be as dynamic at delivery as it was at launch. Appreciation projections are assumptions, not promises.
Undifferentiated properties (no amenities, basic furnishing) show much lower occupancy rates. With older properties and land: outdated cadastral records, unpaid taxes, unresolved inheritances. A local lawyer becomes non-negotiable in that case.
Yes. A foreigner, regardless of nationality, can acquire urban real estate in Asunción in their own name, without prior residency and without setting up a company. It's written into the Paraguayan Constitution: a foreigner has the same property rights as a citizen. The only mandatory step is the anti-money-laundering check on the source of funds (the SEPRELAD agency), which takes one to three weeks depending on the project. Only rural properties located within the border security strip (50 km along the borders) are subject to specific restrictions, particularly for nationals of neighboring countries: this doesn't affect urban apartments. For any property in a border zone, we have it checked case by case with a notary.
Yes, and it's the standard way our clients operate. The reservation is made by bank transfer to the developer's account (typically around $1,000, varying by developer and project), and the property is secured as soon as proof of transfer is received. The contract is signed remotely, with a notarial power of attorney if needed. We manage the site visits and on-the-ground checks. The purchase contract binds you and secures your acquisition as soon as it's signed; the final title deed is then registered with the registry, usually within the months following delivery depending on the project (notary fees represent around 3% of the price). Exact timelines and terms depend on the developer and are confirmed case by case with the notary.
Entry tickets start around 36,000 EUR on certain off-plan projects, with payment spread out over the construction period. For a delivered, rental-ready apartment with furnishing included, expect generally between $60,000 and $90,000. Above $100,000, you gain access to higher-standard projects with amenities (pool, coworking, concierge) that support the rental yield.
In many cases, yes: you can transfer your contract before delivery, subject to the terms in the contract and the developer's approval (transfer fees may apply). This is what can make off-plan buying more liquid than people think: if the market value rises above your entry price, transferring the contract is a possible exit before the final title is even registered. Well-located, well-launched projects often sell out fast, sometimes within a few months, but this varies by project and market conditions, and nothing is guaranteed. Liquidity is generally better on studios and one-bedrooms than on two- and three-bedroom units.
Buying new through a developer is significantly safer in the Paraguayan context. On older properties (and especially land), the risks are significant: outdated cadastral records, property taxes unpaid for years, unresolved inheritances between heirs. If you're targeting land or a resale property, working with a local lawyer is non-negotiable. For new-build real estate under development, the framework is much clearer and the checks are simpler.
No, it's not mandatory to buy and rent out a property. You can invest as a non-resident. That said, if you become a Paraguayan tax resident (through permanent residency), you fully benefit from the territorial tax system: your foreign-source income is no longer taxed in Paraguay, and you can step out of the tax cycles of your home country. Our entity Resident Paraguay handles this process separately. Both processes can be done in parallel or one after the other.
Sources and methodology
This information is updated on an ongoing basis. A question about a specific figure? Contact us.
Describe your situation, your budget, and your goals: an English-speaking advisor based in Asunción will get back to you within 24 hours with precise figures, not generalities.