You found the apartment. The listing says a number, you can afford that number, and now you're ready to move. Then someone mentions the escribano, the transfer tax, the registry, and suddenly the price on the page isn't the price you'll pay. This is where a lot of first-time buyers freeze.
Here's the good news up front. Paraguay's closing costs are modest by international standards. Compared to what you'd hand over in Spain, Portugal, or much of Latin America, the extra bill here is small. But small is not zero, and the worst way to learn the difference is at the signing table. So let's walk through the full cost of getting a Paraguayan property from a listing into your name, and the ongoing costs that start the day after you close.
What the sticker price leaves out
When you see an entry-level apartment from $62,900, or a unit in Central Mariscal from $80,000, that figure is the seller's price for the property. It is not the amount that leaves your account. On top of it sits a stack of transaction costs, and each one exists for a reason.
The single most important item is the escribano. In Paraguay, an escribano is a notary who is also a qualified lawyer, and they carry real legal weight in a property transfer. This person verifies the title, confirms the seller actually owns what they're selling, checks for liens or debts attached to the property, and then drafts and authorizes the escritura, the public deed that makes the sale official. Nothing about your ownership is secure until the escribano has done this work.
Then there's the transfer tax, a government charge triggered by moving the property from one owner to another. After that, the property has to be recorded in the public registry under your name, which carries its own registration fees. If you're wiring money from abroad, your bank and the receiving bank may take a cut on the international transfer and the currency exchange, so build that into your thinking too.
The components, at a glance
Here is how the pieces fit together. The point of this table is to show you what you're paying for and when, not to promise exact figures, because the numbers move with the size and specifics of each deal.
| Component | When due | Note |
|---|---|---|
| Escribano fees | At signing | Covers title verification and drafting the escritura. Fees are negotiable and scale with transaction size. |
| Transfer tax | At transfer | Government charge for changing ownership. |
| Public registry registration | After signing | Records the property under your name so your ownership is official. |
| Bank / international transfer costs | On payment | Applies when funds arrive from abroad. Check both banks' fees and the exchange rate. |
| Pre-construction deed costs | Varies by developer | Some developers quote a price that excludes deed costs and charge them separately. Always confirm. |
How much to actually budget
For planning purposes, set aside a low single-digit percentage of the purchase price to cover everything all-in. That's the honest ballpark, and it's why Paraguay reads as buyer-friendly next to markets where closing costs run into double digits.
But treat that as a starting frame, not a quote. Fees here are negotiable, and they vary with the size of the transaction, so the only number that matters is the one your escribano gives you in writing before you sign. Ask for that written quote early. A good escribano will happily itemize what they charge and what the government charges, and if someone won't put it on paper, that itself is worth noting.
One item you never skip, no matter how tight the budget: the escribano's title review. It costs a few hundred dollars, which in the scheme of a property purchase is almost nothing, and it's the check that stands between you and buying a home with a hidden debt or a clouded title attached to it. Skipping it to save a few hundred dollars is the most expensive saving you can make.
Buying pre-construction? Read the fine print
Pre-construction is one of the most attractive ways into the Paraguayan market, because you lock in today's price on a unit that won't be finished for a while. But the payment structure changes the closing math, and this is exactly where buyers get surprised.
The question to ask the developer is simple: what does your price include, and what does it exclude? Some developers quote a headline figure and then charge deed costs separately once the building is delivered and the title transfers to you. Others fold more of it in. Neither approach is wrong, but you need to know which one you're dealing with so the final bill doesn't arrive as a shock two years after you signed. Get the answer in writing, and have your escribano confirm it.
The costs that don't stop at closing
Closing is a one-time event. Owning is ongoing, and the costs of ownership are the part buyers most often forget to plan for.
First, annual property tax. Paraguay levies it on the fiscal value of the property, which is a conservative government-assessed figure that typically sits well below what you actually paid. The rate lands in a low range, roughly 0.3 to 1 percent of that fiscal value, so the yearly bill tends to be gentle.
If you're buying an apartment, you'll also pay expensas, the monthly condo fees that cover shared costs like the building's maintenance, security, elevators, and common areas. These aren't a tax and they don't go to the government, but they're a real, recurring line in your budget, so ask what they run before you commit.
Then there's rental income, if you plan to let the property out. Paraguay taxes rental income lightly, under a flat 10 percent regime, which is straightforward and easy to plan around. And here's the part that makes Paraguay stand out for international owners: the country runs a territorial tax system, which means foreign-source income is taxed at 0 percent. Money you earn outside Paraguay stays outside the Paraguayan tax net.
An honest caveat
None of this is a substitute for professional advice on your specific purchase. Tax rules have conditions and exceptions, developer contracts vary, and your own situation, especially your residency and where your income comes from, changes how the numbers apply to you. Everything here is the shape of the costs, not a personalized calculation. Before you sign anything, get a written quote from your escribano and, if your finances are at all complex, talk to a local accountant. The goal isn't to scare you off. It's to make sure you buy with your eyes open.
The takeaway
Paraguay is genuinely one of the more affordable places to close on a property, and the ongoing tax picture, a light property tax, a flat 10 percent on rental income, and zero on foreign income, is a big part of why so many international buyers look here in the first place. That's the real advantage, and it's worth taking seriously.
Just don't buy on the sticker price alone. Budget a low single-digit percentage on top for closing, ask the developer what's included, never skip the escribano's review, and get everything in writing before you sign. Do that, and the full bill holds no surprises.
FAQ
What is an escribano, and do I really need one? An escribano is a Paraguayan notary who is also a qualified lawyer, and yes, you need one. They verify the title, check for hidden debts or liens, and draft the escritura that makes your ownership official. The title review costs a few hundred dollars and is the one item you should never cut.
Roughly how much should I budget for closing costs? Plan for a low single-digit percentage of the purchase price to cover everything all-in, including escribano fees, transfer tax, and registry registration. Fees are negotiable and vary with the size of the deal, so get a written quote from your escribano before you sign rather than relying on any estimate.
Will I pay tax on income I earn outside Paraguay? No. Paraguay uses a territorial tax system, so foreign-source income is taxed at 0 percent. Rental income earned inside Paraguay is taxed lightly under a flat 10 percent regime, and annual property tax runs roughly 0.3 to 1 percent of the conservative fiscal value.
Want the full picture before you start shortlisting? Grab our free guide to buying property in Paraguay. It walks you through the process step by step, so you know exactly what to expect from listing to signed deed.