Paraguay Real Estate

by : Seth Willis Jr.

The small landlocked Paraguay real estate is no longer considered the 'island surrounded by land' in South America. Paraguay real estate has in recent years taken steps to overcome its geographic, economic and political isolation and has opened up remarkably to the outside world.

Paraguay real estate may not have the dramatic tourist attractions of its more famous South American neighbors, but what it does have is a spectacular range of unspoiled terrain that is perfect for nature lovers, anglers and bird-watchers. The diverse Paraguay Real Estate ranges from rain forest, ranches and subtropical farms to marshland and savanna. The vast Chaco region, which is stark and sparsely populated, is great for trekking.

Geography of Paraguay Real Estate

Paraguay real estate is divided into two separate, natural regions by the Paraguay River. On the west is the vast, arid Chaco region - gigantic piedmont plain of scrub and marsh. On the east is the Paraneña region - a heady mixture of fertile, grassy farmland, valleys, plateaus and rolling hills.

The eastern Paraneña region is heavily populated and is home to almost 95% of Paraguayans. The climate here is more predictable and the geography of the land more hospitable. The broad Parana River is the only link between land-locked Paraguay real estate and the sea.

Asunción the energetic capital of Paraguay real estate is located on the hills above the Rio Paraguay. Asuncion is a mix of colonial, beaux-art buildings and glitzy modern demeanor. Most of the finest attractions of Paraguay real estate are a short distance away from the capital. There's Itaguá, the weaving capital famous for its spider web or ñandutí lace and also the lakeside resorts of San Bernadino and Areguá, both on Lago Ypacaraí.

Buying Paraguay Real Estate

Foreigners are encouraged to engage in industry and commerce and there are no restrictions on foreigners buying and owning Paraguay real estate. However there are certain rules to comply with when it comes to purchasing Paraguay real estate.

A Notary Public is essential when buying or selling Paraguay real estate. The Notary Public is responsible for obtaining the certificates necessary for preparing the Transfer of Deed - the tax clearance from the municipality; Cadastre or Zoning Certificate from the National Service of Cadastre; Non-Encumbrance and Free Disposability of Assets from the General Direction and the Tax Compliance from the Ministry of Finance. The fees for this service vary and could be anything between 0.75% to 2 % of the value of the property and the VAT due is 10%.

After getting the Transfer of Deed notarized a Municipal Tax of 0.2% -0.3% of the property cost has to be paid, depending on the location of the property. The final step is registering the documents that are notarized at the Public Registry by the Notary Public. A fee of PGY 200,000 (US$36) has to be paid towards registration and PGY 187,000 (US$32) towards Adminitrative expenses. The Judiciary Tax is 0.74% of the value of the property. The whole process of purchasing and registering a property could take about 48 days to complete.