Paraguay (PY)
Affordable South American residency hub with low taxes, warm climate, Mercosur access, growing expat communities, and a practical base in Asuncion, Encarnacion and Ciudad del Este.
Consumer Rights
Right of withdrawal, contracts and debt collection in Paraguay.
Consumer protection in Paraguay is governed by Law 1334/98 (Ley de Defensa del Consumidor y del Usuario) and enforced by SEDECO (Secretaría de Defensa del Consumidor y el Usuario — sedeco.gov.py; Tel: 021 446 443). SEDECO handles complaints about faulty goods, price gouging, misleading advertising, and contract abuses. Offices: Asunción HQ (Avda. Mariscal López 3333, Barrio Mburucuyá; Tel: 021 446 443 / 021 446 424); complaint portal at sedeco.gov.py — submit online 24/7 with supporting photos and documents. SEDECO can mediate disputes, impose fines, and order refunds; it cannot award compensation for distress — civil courts handle that. Sector regulators: CONATEL (conatel.gov.py; Tel: 021 216 3000) for telecommunications and internet; BCP Área de Protección al Usuario Financiero (bcp.gov.py; Tel: 021 619 2000) for banking, cards and payment services; ANDE (ande.gov.py; Tel: 021 217 5000) for electricity; ESSAP (essap.gov.py) for water and sewage. For fraud and scams: file a police complaint (comisaría virtual at mdi.gov.py) and simultaneously notify SEDECO. Small claims up to Gs. 50 million: Juzgado de Paz (small claims judge) — filing fee Gs. 50,000–200,000; decision typically 2–6 months.
Right of withdrawal (Widerrufsrecht)
Paraguay Law 1334/98 provides a 3-business-day withdrawal right for distance sales (compras a distancia — telephone, internet, door-to-door). If you cancel within 3 business days: the seller must refund the full price, and return shipping is typically the buyer's cost unless the goods were defective or not as described. For in-store purchases: no statutory withdrawal right — return rights depend entirely on the store's written policy (política de devolución). Major retailers (Shopping del Sol, Paseo La Galería, Casa Claas electronics) often have 7–30 day exchange-or-store-credit policies — ask for the written policy before paying, as verbal promises are not enforceable. Defective goods: under Law 1334/98, regardless of return policy, a product that is defective or not as described entitles you to repair, replacement, or refund. Notify the seller in writing (WhatsApp message or email) within 30 days of discovering the defect — save screenshots. If refused, file with SEDECO (sedeco.gov.py; Tel: 021 446 443); SEDECO mediation is free. For online purchases from international platforms (Amazon US, MercadoLibre Argentina): your rights are governed by the platform's own policy and the seller's country laws — SEDECO has no jurisdiction over overseas sellers.
Contract cancellation
Telecom contracts (Tigo/Personal/Claro/Vox): minimum commitment periods for subsidised handset contracts are typically 12–24 months; SIM-only plans and postpaid monthly plans can usually be cancelled with 30 days written notice. Number portability: regulated by CONATEL — submit a porting request to the receiving operator; the process takes 24–48 hours and is free of charge. Contact CONATEL (conatel.gov.py; Tel: 021 216 3000) if an operator refuses or delays a valid porting request. Home internet contracts (Tigo/Personal/Vox fibre): typically 12–24 month minimum commitments for discounted installation; cancellation before term may incur a penalty of 1–3 months' remaining instalments — check your written contract. Gym memberships: no statutory cooling-off period for in-person gym contracts in Paraguay. Most Asunción gyms (Smart Fit, Body Tech, El Country) require 1–3 months written notice or charge a cancellation fee. Read membership terms before signing. School contracts: international schools (Colegio Internacional, American School, Colegio Goethe, Colegio San José) require one full term's written notice to withdraw a child — late withdrawal fees of one or two terms are common. Verify the school's written withdrawal policy before the contract is signed. Private health/life insurance: regulated by the Superintendencia de Seguros (bcp.gov.py/superintendencia-de-seguros) under the BCP. Cancel in writing 30 days before renewal. IASB-registered insurers must accept cancellation requests in writing; keep your registered letter or email. Service contracts (cleaning, security, maintenance): cancellation per written agreement; if no written notice period is stated, 30 days is the accepted standard in Asunción.
Auto-renewal clauses are common in Paraguay for: internet and telecom plans (annual loyalty contracts); private health and vehicle insurance; gym and club memberships; security monitoring services (COSEVI, G4S, Prosegur); and building maintenance contracts. There is no blanket law requiring advance auto-renewal notice in Paraguay, but under Law 1334/98, an auto-renewal clause must be explicitly stated in the contract — if it was not disclosed at signing, it is challengeable at SEDECO. Best practice: set calendar reminders 45 days before any annual contract renewal date. To cancel before auto-renewal: send written notice (WhatsApp with read receipt, email, or certified letter — carta notarial from a Paraguayan notary for high-value contracts, cost Gs. 80,000–200,000) before the renewal date in the contract. For telecom billing disputes: complain first to the operator in writing; if unresolved within 15 business days, file with CONATEL (conatel.gov.py; online complaint form; Tel: 021 216 3000). For banking or credit card auto-billing disputes: contact your bank's complaints desk (Mesa de Atención al Cliente) in writing first; if unresolved in 15 business days, file with BCP Área de Protección al Usuario Financiero (bcp.gov.py; Tel: 021 619 2000). For insurance auto-renewal disputes: file with Superintendencia de Seguros (bcp.gov.py; Tel: 021 619 2000). For electricity billing errors: submit a formal reclamo to ANDE (ande.gov.py; Tel: 021 217 5000 / 130) in writing — keep your número de reclamo as proof for escalation.
Debt collection — response deadlines
Informal reminders: Standard Paraguay debt collection progression: informal reminder (call/WhatsApp/email from the supplier) → formal written demand (carta notarial — registered letter through a Paraguayan notary, cost to the creditor Gs. 80,000–200,000) → Juzgado de Paz or Juzgado Civil filing → judgment (sentencia) → enforcement (embargo). For utility bills: ANDE and ESSAP issue a final notice before disconnection; ANDE reconnection fee Gs. 80,000–200,000. For mobile and internet: operators bar the line and may report to Informconf (informconf.com.py — Paraguay's main credit bureau used by banks, employers, and landlords). For formal bank loans and credit cards: default triggers BCP Central de Riesgos listing, which affects all future credit applications in Paraguay.
Court order: Paraguay debt enforcement: formal carta notarial (notarial demand letter) → filing at Juzgado de Paz (claims under Gs. 50 million) or Juzgado Civil → summons (cédula judicial) → hearing (typically 3–12 months) → judgment (sentencia) → enforcement. Enforcement options: embargo bancario (bank account freezing and seizure); embargo de sueldo (salary garnishment — limited to 30% of net salary for consumer debts); embargo mobiliario (moveable asset seizure by the Oficial de Justicia). The full process from carta notarial to enforcement: typically 6–24 months depending on court backlog. Responding to a carta notarial promptly is critical — silence is treated as acknowledgement of the debt in Paraguayan civil courts. If you receive a judicial cédula (court summons): appear or send legal representation by the stated date — default judgment (sentencia en rebeldía) is entered against you without further hearing.
Response deadline: On receiving a carta notarial or court summons (cédula judicial): respond within the deadline stated — typically 5–15 business days for a carta notarial. Even if you dispute the amount, respond in writing (WhatsApp with read receipt is acceptable for informal disputes; carta notarial is necessary for formal replies to high-value claims). Never ignore formal legal correspondence in Paraguay. For court summons: the response deadline is stated on the cédula — typically 5–10 business days to appear or file a contestación (defence). Consult a Paraguayan abogado immediately. Paraguay Bar Association (aag.com.py) referral list; typical lawyer fees Gs. 500,000–2,000,000 for initial consultation and demand response.
Consumer protection authority
Primary agency: SEDECO (Secretaría de Defensa del Consumidor y el Usuario) — sedeco.gov.py; Tel: 021 446 443 / 021 446 424; Avda. Mariscal López 3333, Barrio Mburucuyá, Asunción. File complaints online at sedeco.gov.py or in person at SEDECO Asunción, or at municipal consumer offices (most municipalidades in Gran Asunción have consumer complaint desks). Sector regulators: CONATEL (conatel.gov.py; Tel: 021 216 3000) for telecoms, internet, cable TV, and broadcasting; BCP Área de Protección al Usuario Financiero (bcp.gov.py; Tel: 021 619 2000) for banking, credit cards, and payment services; Superintendencia de Seguros under BCP (same Tel: 021 619 2000) for insurance; ANDE (ande.gov.py; Tel: 021 217 5000) for electricity billing and supply disputes; ESSAP (essap.gov.py; Tel: 021 449 2000) for water and sewage. Informconf (informconf.com.py; Tel: 021 660 330) for credit bureau disputes and record corrections. Comisión Nacional de Competencia (CONACOM — conacom.gov.py) for anti-competitive practices and market abuse. For criminal fraud and online scams: Policía Nacional cybercrime unit (mdi.gov.py; comisaría virtual for online reports) and parallel complaint to SEDECO.
Faulty goods / misleading advertising: SEDECO (sedeco.gov.py; Tel: 021 446 443) — free complaint, 2–6 weeks mediation. Keep receipt (factura), photos of defect, and any written communications. Telecoms/internet disputes: first contact operator in writing; if unresolved in 15 business days, file with CONATEL (conatel.gov.py; online complaint form; Tel: 021 216 3000). CONATEL can order the operator to resolve or face fines. Banking/credit card disputes: bank's internal complaints desk first (in writing, keep reference number); if unresolved in 15 business days, file with BCP Área de Protección al Usuario Financiero (bcp.gov.py; Tel: 021 619 2000). Insurance disputes: insurer's internal complaints desk first; then Superintendencia de Seguros under BCP (bcp.gov.py; Tel: 021 619 2000). Electricity billing errors: ANDE reclamo (Tel: 021 217 5000 / 130) — file in writing at an ANDE office or online; keep número de reclamo. Water billing errors: ESSAP (essap.gov.py; Tel: 021 449 2000). Credit bureau disputes: Informconf (informconf.com.py; Tel: 021 660 330) — file a formal impugnación de datos within 10 business days of discovering an incorrect listing. Rental deposit fraud and property scams: Policía Nacional cybercrime (comisaría virtual, mdi.gov.py) plus a formal denuncia at your nearest comisaría; preserve all WhatsApp screenshots and transfer receipts. Small claims (under Gs. 50 million): Juzgado de Paz — bring factura/receipt, contract, photos, and all written correspondence; filing fee Gs. 50,000–200,000.