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.
Estate & Inheritance in Paraguay
Wills, intestacy, inheritance tax, and cross-border estate planning for expats.
Paraguay follows civil-law inheritance principles with forced-heirship concepts. Expats with assets in Paraguay and abroad should make coordinated wills and avoid assuming a home-country will is enough.
Intestacy — What Happens Without a Will
If there is no valid will, succession follows Paraguayan civil-law family order. Spouses, children and other relatives can have protected rights. Unmarried partners are much more vulnerable without planning.
Types of Valid Will
Open notarial will
Testamento por escritura publicaWill executed before an escribano/notary with formal safeguards.
Strongest practical option for expats with Paraguayan assets
Recommended when property, blended families or foreign heirs are involved.
Closed will
Testamento cerradoSealed will delivered under formal conditions.
Valid if formalities are satisfied
Less practical than open notarial wills for many foreigners.
Holographic/private document
Documento privadoA private written expression of wishes may not satisfy all succession formalities.
Risky without legal review
Do not rely on informal notes for Paraguayan property.
Forced Heirship
Protected heirs can claim reserved shares under civil-law principles. You may not be free to leave everything to one person if spouse/children or other forced heirs exist.
EU Succession Regulation (Brussels IV)
EU Succession Regulation does not apply inside Paraguay, but EU nationals with EU assets may still need Brussels IV planning for their European estate.
Inheritance Tax
Paraguay does not have a high-profile inheritance tax like many European countries, but succession, registration, notary, court and transfer costs can apply.
| Relationship | Tax-Free Allowance | Tax Rate (above allowance) |
|---|---|---|
| Spouse and children | Civil-law reserved rights may apply | Fees/taxes depend on asset and process |
| Other relatives | Depends on succession order and will | Fees/taxes depend on asset and process |
| Unrelated beneficiaries | No family protected status | Seek tax/legal advice before drafting |
Cross-border tax may arise in the beneficiary home country even if Paraguay tax is low.
Cross-Border & Multi-Country Estates
Use a Paraguayan lawyer plus home-country estate adviser. Coordinate property deeds, bank accounts, company shares, forced-heirship rules and tax residence.
Certificate of Inheritance
Heirs may need court/notarial succession documents before banks, land registry or companies release assets.
Will Registration
Ask your escribano how the will is stored and located after death; make sure trusted heirs know which notary holds the documents.
Living Will & Healthcare Power of Attorney
Medical powers of attorney and advance directives should be drafted locally in Spanish if you expect Paraguayan doctors to rely on them.
Useful Links
Estate & Inheritance
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