How to Invest in Paraguay from Chile: 2026 Legal & Tax Guide
Chile has, alongside Spain, the oldest and most complete bilateral relationship with Paraguay: a tax treaty since 2006 and an investment protection agreement since 1995, with a next-generation free trade deal now under negotiation.
Can a Chilean citizen buy land in Paraguay without restrictions?
No restrictions. Chile doesn't share a border with Paraguay, so Law 2,532/05 doesn't apply — you can buy rural or urban land anywhere in the country.
Paperwork from Chile
Chile is a Hague Convention member. The special power of attorney is signed before a Chilean notary and apostilled, or executed directly at the Paraguayan Consulate in Chile.
Taxes in Paraguay when buying
3%–4% of the value: transfer VAT (≈1.5% effective), municipal tax (0.3%–0.5%), Registry inscription (≈0.8%) and notary fees (0.75%–2%). Chile and Paraguay have the oldest double-taxation treaty on this list (Law 2,965/06), covering income and wealth.
What to report in Chile
Chile taxes its residents on worldwide income. Rental income from your Paraguayan land is reported as foreign-source income in the annual Operación Renta filing with the SII (code 6, "foreign real estate rental"), with a credit for the tax paid in Paraguay enabled by the treaty. The Central Bank of Chile also requires an informational report on foreign investments under Chapter XII of the Compendium of International Exchange Rules — it's statistical, no prior authorization needed.
How to send money from Chile
Chile's capital markets have been liberalized since 1999, with no exchange controls and a freely convertible peso. The only requirement is the Central Bank informational report mentioned above; verifying the origin of funds on significant transfers falls to the UAF (Financial Analysis Unit).
Investment protection and 2026 context
Chile and Paraguay have had a reciprocal Investment Promotion and Protection Agreement in force since 1995/96 — combined with the 2006 tax treaty, it's the most consolidated bilateral coverage on this list. Both countries are also deepening their Trade Agreement (ACE 35, in force since 2021/2023), with negotiations underway toward a next-generation Free Trade Agreement.