What documents are needed to buy a property in Paraguay?

Practical guide on legal requirements, documentation and deed registration process

Real estate transactions in Paraguay are governed by a legal and registration framework that establishes specific documentary requirements for both domestic and foreign buyers. While the country does not impose nationality restrictions on the acquisition of urban properties, the transaction requires verification of the buyer's identity, the legal status of the property, and the proper notarization and registration of the transfer.

Knowing in advance which documents are involved in the process is key to ensuring that the operation is carried out in an orderly, transparent manner and in accordance with current regulations.

Compliance with SEPRELAD Regulations

Within the framework of real estate transactions, the purchase and sale of properties in Paraguay is subject to the anti-money laundering and counter-terrorism financing regulations established by SEPRELAD. Notaries, real estate agencies, and other obligated entities must apply due diligence procedures to identify the buyer and verify the lawful origin of the funds used in the transaction.

In practice, this may involve requesting declarations of the source of funds, supporting documentation such as contracts and proof of income, and, in certain cases, additional information for larger transactions, non-resident buyers, or corporate structures. These requirements are not part of the registration process itself, but are necessary to comply with current regulations and enable the execution of the public deed.

Compliance with SEPRELAD requirements is now a common step in the buying and selling process and should be considered part of the normal documentation process for a formal real estate transaction in Paraguay.

Buyer Documentation

The starting point is personal identification. Paraguayan citizens must have a valid national identity card. Foreign buyers can purchase real estate with a valid passport, without needing permanent residency in the country. In practice, notaries verify that the identity documentation is valid and in good condition at the time of the transaction, especially in the case of non-resident buyers.

To purchase property in Paraguay, a criminal record check is not a direct legal requirement on the deed. However, as part of due diligence and regulatory compliance procedures, criminal record certificates and/or credit or judicial reports may be requested in certain transactions, especially when the financial system is involved, the buyer is a non-resident, or aspects related to the free disposal of assets are being analyzed.

It is also common to request proof of marital status, such as a certificate of single status or a marriage certificate, apostilled if issued abroad. This is key to defining the applicable property regime and avoiding future disputes regarding ownership of the property.

Legal Documentation of the Property

The central document in any transaction is the title deed, which must be properly registered with the General Directorate of Public Registries. The notary is obligated to verify that the seller is the legitimate owner and that a valid chain of ownership exists.

In addition, there is the certificate of ownership or certificate of encumbrances, which confirms that the property is free of mortgages, liens, injunctions, or other restrictions that would prevent its transfer. This point is critical: buying without this verification exposes the buyer to serious financial risks.

For urban properties, an approved cadastral map is usually also required, as well as proof of being up-to-date with property taxes and municipal levies. In some municipalities, the notary's office expressly requests a municipal debt certificate or a certificate of no outstanding debt as a prerequisite for signing the deed.

Contracts and Formalization of the Purchase

In many transactions, especially those involving deferred payments or reservations, a private purchase agreement is signed beforehand , with signatures certified by a notary. This agreement establishes the price, payment method, terms, and conditions, but does not transfer ownership.

The transfer is only effective through a public deed , executed before a notary public and subsequently registered in the corresponding registries. This act is equivalent to the registration transfer form and is what legally consolidates the purchase.

Taxes, Fees and Registrations

To complete the transaction, proof of payment of all taxes and fees related to the property must be provided. This includes up-to-date property taxes and, in some cases, specific municipal taxes. While capital gains tax is typically the responsibility of the seller, the buyer should ensure there are no outstanding debts that could affect the registration.

Special Considerations for Foreign Buyers

Paraguay grants equal rights to foreigners and nationals to purchase urban and rural real estate. The only relevant restriction applies to rural properties located within 50 kilometers of the border, which require authorization from the Executive Branch.

The purchase can be made without being physically present in the country, using a power of attorney granted abroad, provided it is properly apostilled or legalized. This mechanism is widely used by regional investors.

Having a local bank account is not a legal requirement, but it usually facilitates payments, transfers and subsequent operations, especially in cases of rental or resale.

Acquiring property in Paraguay requires fulfilling a series of documentary requirements to guarantee the legal validity of the transaction and the proper registration of the property in the buyer's name. Reviewing the property title, verifying encumbrances, formalizing the transaction through a public deed, and complying with tax obligations are key stages of the process.

Having professional advice during the purchase and sale facilitates compliance with these requirements and helps to reduce legal and registration risks associated with the transaction.