How to Invest in Paraguay from Brazil: 2026 Legal & Tax Guide
Brazil is the second bordering country sending the most inquiries about Paraguayan subdivisions — and like with Argentina, there's a specific border rule and a 2026 currency-transfer cost worth understanding before you buy.
Can a Brazilian citizen buy land in Paraguay without restrictions?
Same caveat as Argentina: Brazil is a bordering country, so Law 2,532/05 bars its citizens from owning rural property within 50 km of the border, unless they hold permanent residency in Paraguay, inherited the land, or obtained a presidential exception. For urban lots and subdivisions anywhere in the country, there's no restriction at all.
Paperwork from Brazil
Brazil has been a Hague Convention member since 2016, so a local cartório can apostille your special power of attorney; it can also be signed directly at the Paraguayan Consulate in Brazil, no extra apostille needed. Documents in Portuguese usually need translation for the Paraguayan notary and Registry. A passport is enough to sign the deed; the Mercosur Residency Agreement later makes getting a Paraguayan ID easier if you need one.
Taxes in Paraguay when buying
The usual range: 3%–4% of the value in transfer VAT (≈1.5% effective), municipal tax (0.3%–0.5%), Registry inscription (≈0.8%) and notary fees (0.75%–2%).
What to report in Brazil
If your total foreign assets exceed US$1,000,000, you must file the Declaração de Capitais Brasileiros no Exterior (DCBE) with the Central Bank every year (Feb 15–Apr 5), and the Paraguayan property counts toward that total. Regardless of value, the property must also appear in the "Bens e Direitos" section of your annual income tax return. On sale, the capital gain is calculated via the Receita Federal's GCAP tool, taxed at 15% (up to 22.5% on larger gains). There is currently no double-taxation treaty between Brazil and Paraguay.
How to send money from Brazil (as of August 2026)
The most important number for a Brazilian buyer: since July 2025 (Decree 12,499/2025), the IOF currency-exchange tax is 1.1% when transferring between accounts you own, but jumps to 3.5% if you pay a third party directly — for example, paying the seller or the Paraguayan notary office directly. It's worth opening your own account in Paraguay first and paying from there, rather than wiring straight to a third party.
Are there investment treaties with Paraguay?
No confirmed investment protection agreement (BIT) or Acordo de Cooperação e Facilitação de Investimentos (ACFI — the format Brazil uses instead of traditional BITs) is currently in force with Paraguay. For a large transaction, it's worth confirming directly with Apex-Brasil or REDIEX before moving forward.