How to Invest in Paraguay from Spain: 2026 Legal & Tax Guide
Of the six countries in this guide, Spain today has the strongest bilateral legal framework with Paraguay: a brand-new tax treaty layered on top of an investment protection agreement nearly 30 years old.
Can a Spanish citizen buy land in Paraguay without restrictions?
No restrictions. Spain doesn't share a border with Paraguay, so Border Security Law 2,532/05 doesn't apply — you can buy rural or urban land anywhere in the country.
Paperwork from Spain
Spain has been a Hague Convention member since 1978, with electronic apostilles available through the Notarial College. The special power of attorney is signed before a Spanish notary and apostilled, or executed directly at the Paraguayan Consulate in Spain, no extra apostille needed.
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%).
The double-taxation treaty — the key development
The Double Taxation Agreement between Paraguay and Spain, approved via Law No. 7,271/2024, entered into force on October 14, 2024 and has applied for tax purposes since January 1, 2025. In practice: rental income and capital gains from your Paraguayan property are taxed in Spain with a credit for what you've already paid in Paraguay, avoiding double taxation — something Argentina, Brazil and the US don't currently offer.
What to report in Spain
The Paraguayan property must be included in Modelo 720 (foreign asset declaration) if your total foreign real estate exceeds €50,000, filed by March 31 of the following year. Penalties were softened after the 2022 CJEU ruling and Law 5/2022, aligning them with the general penalty regime. The property may also count toward Wealth Tax depending on your autonomous community.
Sending money and investment protection
No exchange controls as an EU country: a standard SEPA or SWIFT transfer works. You must declare the foreign investment via Modelo D-7A with the Directorate-General for International Trade and Investment (through the AFORIX platform), and file Modelo D-7B when you sell. As extra backing, Spain and Paraguay have had a reciprocal Investment Protection and Promotion Agreement in force since 1997 — double coverage, alongside the tax treaty.