Buying a Home in Paraguay

Paraguay, a landlocked country in South America, is becoming an increasingly popular destination for expats due to its low cost of living, friendly locals, and beautiful landscapes. If you're considering making the move and buying a home in Paraguay, there are several key factors to consider. This guide will provide you with the necessary information to navigate the Paraguayan real estate market, from finding a property to understanding the legal requirements and potential pitfalls.

How Do I Find Houses for Sale in Paraguay?

There are several ways to find houses for sale in Paraguay. Online property portals and real estate agencies are the most common methods. Websites like Infocasas and Clasipar have extensive listings of properties for sale across the country. Local newspapers also have real estate sections. It's also common to find properties by word-of-mouth, so networking with locals and other expats can be beneficial.

Are There Restrictions on Foreigners Owning Property in Paraguay?

Paraguay is one of the most open countries in South America when it comes to property ownership by foreigners. There are no restrictions on foreign ownership of property, except for properties near the border due to national security reasons. However, it's always advisable to consult with a local attorney to ensure you understand all legal aspects of property ownership in Paraguay.

Does Paraguay Have an MLS Type System?

Paraguay does not have a Multiple Listing Service (MLS) like in the United States. Real estate transactions are typically handled by individual real estate agents or agencies. Therefore, it's important to work with a reputable agent who has a good understanding of the local market.

Do Brokers Have Licenses and How Do I Know if They are Licensed?

Real estate brokers in Paraguay are required to be licensed. However, enforcement can be lax, and unlicensed brokers do operate. To ensure you're working with a licensed broker, ask to see their license or check with the Paraguayan Association of Real Estate Agents (APAPI).

What Documents are Required When Buying a Home?

When buying a home in Paraguay, you'll need a valid passport, a tax identification number (RUC), and proof of income. The property itself must have a title deed, which should be checked for any liens or encumbrances. A public notary will prepare the sales contract, which must be registered with the Public Registry of Property.

Do I Need a Lawyer When Buying a Home in Paraguay?

While not mandatory, it's highly recommended to hire a lawyer when buying property in Paraguay. A lawyer can help ensure the property title is clear, prepare the sales contract, and handle the registration process. Legal fees can vary, but typically range from 1% to 2% of the property's value.

Do People Typically Buy a Property with All Cash or Take Out a Mortgage?

Most property transactions in Paraguay are done in cash, as mortgage financing is not as common as in other countries. However, some banks do offer mortgages to foreigners, but the process can be complex and require a substantial down payment.

Are There Inspections That Take Place, and If So What is That Process Like?

Property inspections are not as common in Paraguay as in other countries. However, it's advisable to have a property inspected before purchase to identify any potential issues. This can be done by a local architect or engineer.

What are Some of the Pitfalls to Avoid When Buying Property in Paraguay?

One of the main pitfalls to avoid when buying property in Paraguay is not thoroughly checking the property title. It's also important to be aware of potential fraud, so always work with reputable agents and lawyers. Additionally, be prepared for the process to take time, as bureaucratic delays can be common.