Real Property of Timberland Surface Areas
By Milena Sljivich, BKM | Berkemeyer
The right to private ownership is guaranteed by the constitution of Paraguay. Foreign investors face no specific restrictions to investment in Paraguay. They are guaranteed the same treatment under the law as national citizens. They are also allowed unrestricted repatriation of both their capital and profits. There are certain limitations to the acquisition of land in proximity to borders, when foreigners are native from neighbouring countries.
Paraguay is a stable country for investing in land or real estate, because of its friendly policies towards foreign investors. Besides having the lowest tax rate in the region, it also has a free currency exchange. It has excellent land in abundance for agriculture and/or cattle breeding, at low prices compared with other countries of the region. Real estate is experiencing an impressive and constant value appreciation, exceeding the returns of many other investments.
Even though buying a property in Paraguay is simple, due diligence with the proper professional assistance (e.g. real estate brokers, lawyers, and/or public notaries) is key. This is necessary, considering the existence of overlapping titles on land.
Ownership of real property is only transmitted by public deed drafted by a notary and recorded in the Public Registry of Property.
Lawyers and real estate brokers must also conduct due diligence of all the documentation in order to avoid any errors. Furthermore, these professionals act in their client’s interest to determine that the property can be used for the client’s purpose and has the proper permits to conduct such business (or is located in the appropriate area), construct a building, or any other purpose. They also draft proper contracts in order to establish certain guarantees and cover their client’s interests.
Last, but not least, although real estate business in Paraguay has increased in the past ten years, there are still many more opportunities.
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BKM | Berkemeyer
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Milena Sljivich was admitted as a lawyer in Paraguay in 2013 and admitted to practice law in the State of New York in 2018. Milena speaks Spanish, English, and Italian.
Published: Real Estate Newsletter, No. 10, Autumn 2019 l Photo: Рита Тимофеева - stock.adobe.com