PARAGUAY LAW AND PRACTICE Contributed by: Manuel Arias, Carla Sosa, Martin Carlevaro, Milena Sljivich, Alexander Berkemeyer and Antonio Villa Berkemeyer, BKM - Berkemeyer
Immigration Regime Law 6.984/22 (the Immigration Law) sets out the cat - egories for the admission of foreign nationals, which may include temporary stay or residence. Temporary stay is permitted for a maximum of 90 consecutive days, which may be extended once for a period not exceeding another 90 consecutive days. This type of admission does not authorise the foreigner to engage in paid activities within the country. Foreign nationals wishing to remain in the country with the intention of establishing residence may be admit - ted under the following categories: • spontaneous or occasional residence, valid for up to 90 days and extendable for the same period within the same year; • temporary residence, which allows the foreigner to reside in the country for a period of two years, extendable for an additional two-year period; or • permanent residence, which is granted to individu - als who express their intention to settle permanent - ly after completing the temporary residence period. A notable provision of Law 6.984 is that foreign nation - als who can demonstrate investment in the Republic of Paraguay, in accordance with Law 4.986/13 Creat - ing the Unified System for Business Assistance for the Opening and Closing of Companies (SUACE), are exempt from the temporary residence requirement as a prerequisite for obtaining permanent residence. The process is carried out through SUACE. An investor certificate must be obtained as an initial step, followed by the application for permanent residence. The appli - cant is required to make a minimum investment of USD70,000 or its equivalent in local currency, and to create five jobs for local employees.
authorised by decree of the executive branch based on reasons of public interest – foreigners from any of the neighbouring countries of the Republic of Paraguay (Argentina, Bolivia, Brazil) or legal persons formed mainly by foreigners from any of the neigh - bouring countries may not be owners, condominium owners or usufructuaries of rural real estate located in the border security zone, unless these foreigners have a permanent residency permit in the country. Furthermore, the law provides that the shares of joint stock companies that intend to acquire real estate located in the border security zone must be regis - tered and non-endorsable. Therefore, if a company is interested in acquiring rural real estate in the border security zone and its shareholders are mostly foreign - ers from Brazil, Argentina or Bolivia, the shareholders must obtain permanent residency permit in the coun - try and the company will have registered and non- endorsable shares. Despite this, there is a divided interpretation among legal professionals in Paraguay regarding the border security laws. Some argue that companies acquiring rural real estate in the border security zone must have registered and non-endorsable shares, regardless of the shareholders’ nationality or domicile. This regulation prohibits public notaries from issuing public deeds for non-compliant legal transactions, rendering such proceedings null, and potentially incur - Law 7.424/25 establishes the National Unified Reg - istry and Cadastre System (RUN), which was enact - ed in January 2025 and came into effect in January 2026. This law integrates surveying, cadastral and real estate registry services into a single system to simplify procedures, modernise management and improve legal certainty. The RUN consolidates the General Directorate of Public Registries (DGRP), the Directorate of Geodesy (MOPC) and the National Cadastre Service (MEF). Its implementation includes the Unique Cadastral Registration Identification Code (CUICR), designed to reduce data overlap and prop - erty conflicts. ring sanctions for those involved. Paraguayan Real Estate Regime
9. Tax 9.1 Taxation of Business Activities Corporate Income Tax (IRE)
IRE is a tax applied to companies that are resident in Paraguay, including branches of foreign companies. It is imposed on income and any capital gains (in some cases at the time of realisation), including exchange rate differences. The tax is calculated annually (based
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