How to Invest in Paraguay from the USA: 2026 Legal & Tax Guide
The United States generates more search interest in Paraguayan land than any other foreign country, yet converts almost none of it into direct inquiries — which makes it the single clearest opportunity in our own traffic data, and the good news is there's no legal restriction standing in the way.
Can a US citizen buy land in Paraguay without restrictions?
No restrictions at all. The United States doesn't share a border with Paraguay, so Border Security Law 2,532/05 simply doesn't apply — you can buy rural or urban land anywhere in the country, including the 50 km border strip that does limit Argentine, Brazilian and Bolivian citizens.
Paperwork from the United States
The US is a Hague Convention member: apostilles are issued by the Secretary of State of the state where you sign. The special power of attorney is executed before a notary public and apostilled, or signed directly at the Paraguayan Consulate in the US. It's worth having documents translated into Spanish for the Paraguayan notary and Property Registry.
Taxes in Paraguay when buying
Same as for any buyer: 3%–4% of the property value in transfer VAT (≈1.5% effective), municipal tax (0.3%–0.5%), Registry inscription (≈0.8%) and notary fees (0.75%–2%).
Taxes and reporting in the United States
Here's a piece of good news most people don't know: directly owning a piece of real estate does not trigger FBAR or FATCA/Form 8938 — those rules apply to financial accounts, not to land titled in your own name. That changes if you buy through a Paraguayan company (an SA or SRL): then Form 5471 or Form 8865 comes into play, with steep penalties for missing them. Rental income goes on Schedule E of Form 1040, and a capital gain on sale goes on Schedule D / Form 8949 (the US taxes its residents on worldwide income). Since there's no tax treaty between the US and Paraguay, the credit for the Paraguayan non-resident tax paid on sale is claimed unilaterally through Form 1116 (Foreign Tax Credit).
How to send money from the United States
No capital controls apply — a standard SWIFT wire transfer is all you need. Banks report cash transactions over USD 10,000 (Currency Transaction Report) and unusual patterns (Suspicious Activity Report) under the Bank Secrecy Act; that doesn't block the transaction, it just logs it. Keep documentation of the funds' origin on both ends — your US bank and the receiving Paraguayan institution, which reports to SEPRELAD.
Is there an investment treaty?
There is no Bilateral Investment Treaty currently in force between the United States and Paraguay. There is a Trade and Investment Framework Agreement (TIFA) and a Bilateral Council on Trade and Investment. Paraguay is a member of ICSID, which provides access to international arbitration in certain foreign-investment scenarios.