Paraguay Property Tax Guide 2026 — Transfer 2.5-3%, Annual 0.5-1%
Paraguay imposes a property transfer tax (IMT) of approximately 2.5-3% on real estate acquisitions and an annual property tax of 0.5-1% of the cadastral value. Rural land is subject to a separate progressive tax of 0.2-2%. Property taxes are relatively low compared to regional neighbours.
Property taxes in Paraguay are administered at the national level by the SET, with some municipal components. The system is relatively simple and rates are low. Paraguay also has no inheritance tax on inherited property, making it attractive for property investment. Cadastral values are generally significantly below market value, resulting in low effective tax rates.
Property Transfer Tax (IMT)
The Impuesto a la Transferencia de Inmuebles (IMT) is a one-time tax payable on the acquisition of real estate in Paraguay. The rate is approximately 2.5% to 3% of the declared transaction value or cadastral value, whichever is higher. The buyer typically pays the IMT. The tax is paid at the time of registration with the Property Registry (Registro Público).
Annual Property Tax
The annual property tax (Impuesto Inmobiliario) is levied at 0.5% to 1% of the cadastral value (valor fiscal) of urban properties. Cadastral values are set by the municipality and are typically much lower than market values (often 30-50% of market value). The effective annual tax is usually very low — a property worth USD 200,000 might have an annual tax of only USD 100-200.
Rural Land Tax (IMAGRO)
Rural property is subject to the Impuesto a la Renta de las Actividades Agropecuarias (IMAGRO), a progressive tax on rural land value ranging from 0.2% to 2%. The rate depends on the size and value of the rural property. This tax replaces the annual property tax for rural land. Agricultural activities may also qualify for the reduced 0% IRE rate on first PYG 50M of profit.
FAQs
Do foreign buyers pay the same property taxes as residents?
Yes. Paraguay applies the same property tax rules to foreign and domestic buyers. There are no additional surcharges for foreign property ownership. Non-residents pay the same IMT and annual property tax as residents.
How is the cadastral value determined?
Cadastral values are set by the municipal authorities based on location, size, and improvements. They are generally significantly below market value and are updated periodically. The cadastral value is available from the municipality where the property is located.
Is rental income taxed separately?
Yes. Rental income from Paraguayan property is subject to IRP at 8% (with optional deductions) or 10% depending on the taxpayer's election. See the Rental Income Guide for details.
Disclaimer
This guide is for informational purposes only and does not constitute legal or tax advice. Property transactions in Paraguay require professional legal assistance. Consult a qualified Paraguayan lawyer or accountant for advice specific to your situation.