Real Estate

Purchasing farmland in Paraguay

By M. Yolanda Pereira Z. & Antonio Villa Berkemeyer, Berkemeyer Attorneys & Counselors

Paraguay has excellent land for agriculture, forestry and cattle rearing at relatively lower prices in comparison with neighbouring countries. This has attracted many investors. The acquisition of land is open to foreigners except for the restriction that the border security law imposes on nationals or companies from neighboring countries, Argentina, Bolivia, Brazil. It prohibits ownership of land within fifty kilometers of the border. The restriction may be waived by decree on public interest grounds.

Transfer of ownership must be effected by notarial deed and recorded with the Public Registry of Property. Title clearance and tax certificates must have been obtained prior to drafting the deed. In addition to these formal requirements, conducting due diligence of the documentation is key to ensure that there are no flaws in the history of the title or restrictions on land use.

Unless agreed otherwise, notarial fees and transfer costs will be divided equally between buyer and seller. On transfer, VAT and income tax will apply. Land tax is assessed on the fiscal valuation per hectare, the general rate being 1 per cent. An additional rate according to a sliding scale up to 1 percent applies to large properties.

By far the busiest market is urban development, followed closely by deals for agricultural and cattle rearing farmlands. Real estate has performed impressively over the past few years, exceeding the returns of many other investments.


Yolanda Pereira Z.
Berkemeyer Attorneys & Counselors, Asuncion, Paraguay
T: +595 21 446 706
E: This email address is being protected from spambots. You need JavaScript enabled to view it.; W: www.berke.com.py

 

 

 

 


Antonio Villa Berkemeyer
Berkemeyer Attorneys & Counselors, Asuncion, Paraguay
E: This email address is being protected from spambots. You need JavaScript enabled to view it.; W: www.berke.com.py

 

 

 

 


Antonio Villa Berkemeyer is Master in Corporate Finance and Banking, LLM, Fordham University, New York (2013), Lawyer, Catholic University of Asunción (2010).

Focuses on corporate issues and foreign investment M. Yolanda Pereira Z. is Lawyer, National University of Asunción (1994). Focuses on commercial transactions, energy, environment & natural resources.

Berkemeyer’s expertise embraces a wide array of legal services. These services include the general law practice areas of M&A, commercial transactions, corporate finance, joint ventures, employment, energy & telecommunication, IT law, immigration, environment, franchising, licencing, agency and distribution law. Furthermore the firm has been recognised over the years for its excellence in the area of Intellectual Property such as, inter alia, registration of trademarks, domain names, patents and designs, copyrights and copyright procurement, licencing, franchising, technology and biotechnology agreements, as well as enforcement and litigation before administrative, civil and criminal courts, and coordinating steps nationally and internationally.


published: October 2015

GGI Logo 70x50px

GGI Geneva Group
International AG

Schaffhauserstrasse 550
P.O. Box 286
8052 Zurich
Switzerland

Contact

T: +41 44 2561818
F: +41 44 2561811
This email address is being protected from spambots. You need JavaScript enabled to view it.
www.ggi.com