How to Invest in Paraguay from Argentina: 2026 Legal & Tax Guide
Argentina sends more inquiries about Paraguayan subdivisions than any country besides Paraguay itself — and because the two countries share a border, there's one specific rule worth understanding before you sign anything.
Can an Argentine citizen buy land in Paraguay without restrictions?
Almost entirely, yes. Border Security Law No. 2,532/05 bars citizens of bordering countries — Argentina, Brazil and Bolivia — from owning or holding usufruct over rural property within 50 km of the border, unless they hold permanent residency in Paraguay, inherited the land, received it through a judicial award, or obtained a presidential exception. Outside that strip, and for any urban lot or subdivision anywhere in the country, an Argentine buys exactly like a Paraguayan citizen — no extra paperwork.
Paperwork from Argentina
You don't need to travel. A special power of attorney signed before an Argentine notary and apostilled under the Hague Convention (Argentina has been a member since 1988) works, as does one signed directly at the Paraguayan Consulate in Argentina, which needs no additional apostille. A valid passport is enough to sign the deed; you only need a Paraguayan ID or tax number (RUC) if you plan to rent out or resell later — and the Mercosur Residency Agreement makes that process considerably easier.
Taxes in Paraguay when buying
Budget 3%–4% of the property value in closing costs: transfer VAT (5% on 30% of the value, ≈1.5% effective, when the seller is a VAT taxpayer), a municipal transfer tax (0.3%–0.5%), Property Registry inscription (≈0.8%), and notary fees (0.75%–2%, per the Law 1,307/87 scale).
What to report in Argentina
The Paraguayan property is a foreign asset and must be declared every year under Argentina's Personal Assets Tax (AFIP/ARCA). Rental income or a capital gain on sale is reported under Income Tax as foreign-source income. There is currently no double-taxation treaty between Argentina and Paraguay, so the credit for the Paraguayan non-resident income tax paid on sale (≈4.5% effective of the price) is taken unilaterally, as allowed under Argentine tax law — not through a bilateral treaty.
How to send money from Argentina (as of August 2026)
Since April 2025 there's no monthly cap on buying dollars. The usual channel for sending funds to Paraguay is the MEP or CCL ("contado con liquidación") dollar. One thing to watch: Central Bank Communication "A" 8336 blocks selling MEP/CCL dollars for 90 days if you previously bought official-rate dollars (this restriction doesn't apply if you operate through USDT). Either way, keep documentation proving the lawful origin of the funds — both sides will ask for it.
Is there an investment protection treaty?
There is no Bilateral Investment Treaty currently in force between Argentina and Paraguay. There are signs of closer ties, though: in April 2026, PromArgentina and REDIEX (Paraguay's investment and export promotion agency) signed a memorandum of understanding to improve the bilateral investment climate — for now that's institutional cooperation, not an investor-state arbitration mechanism.