Solid growth, low inflation, high political stability and one of the simplest, most attractive tax systems in South America: Paraguay combines strong macro fundamentals with a real estate market still in an early, attractive stage of development.
Paraguay is one of the most stable economies in South America. GDP per capita of roughly USD 7,137, est. growth of approximately 4.5% in 2026, and inflation estimated at only around 3.3% point to a solid macroeconomic base.
This is supported by favorable population demographics with steady population growth, a politically stable landscape across election cycles, and a growing tourism sector. Asset prices — real estate in particular — have so far only partially reflected these improving fundamentals.
Paraguay is known for a lean, competitive tax system with low, flat rates. The points below are for initial orientation only — for a binding assessment of your personal situation we recommend consulting our local tax experts.
One of the lowest and simplest income tax rates in the region, without complex progressive brackets.
Taxation is generally based on Paraguay-sourced income. Details should always be clarified individually with a tax advisor.
Clearly defined notary, transfer tax and registry fees create cost certainty when purchasing real estate.
Asunción's real estate market has progressed through four distinct phases and is currently in its internationalization phase.
Local buyers dominate the market, limited international visibility, early apartment market.
Accelerating development activity; new premium districts emerge.
Temporary market disruption alongside continued construction activity.
Increasing foreign capital inflows and strengthening residency demand.