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.
Renting in Paraguay
Full lifecycle: finding, moving in, during tenancy, leaving.
Paraguay rentals are governed by Ley 1295/87 (Locaciones y Arrendamientos) and supplemented by the Código Civil (Ley 1183/85). The market is relationship-driven and less standardised than in Western Europe. Good written contracts exist, but newcomers must verify ownership, building rules, deposits, utilities, and currency clauses carefully. Asunción (neighbourhoods: Villa Morra, Carmelitas, Las Mercedes, Ycuá Satí) is the main expat market; Ciudad del Este and Encarnación are smaller. Rents are commonly quoted in USD or PYG — agree the currency, exchange rate reference, and payment method explicitly.
1. Finding a flat
- - Passport or cédula
- - Proof of income or employment (payslips, employer letter, or bank statements)
- - Local guarantor (garante) or larger deposit if you have no local rental history
- - References from previous landlords if available
- - Visit at different times of day to assess traffic, noise, and flood risk — Asunción flooding is a real issue in some streets
- - Confirm whether rent is quoted in PYG or USD and which exchange rate applies on payment day
- - Ask who pays condominium fees, ANDE electricity, ESSAP water, internet, and municipal charges
- - Check air-conditioning units, water pressure, and drainage before signing
- - Inspect for humidity and mould, especially ground-floor units
- - Verify ownership documents — ask to see the escritura (title deed) to confirm the landlord has authority to let
ExpatCheapRent is a rental platform built for expats — worth a look alongside the local platforms above when you start your search in Paraguay.
2. Before move-in
Handover protocol
Create a written inventory and photo/video record of walls, floors, AC units, appliances, meters, locks, and furniture. Have the landlord or agent acknowledge it by signature or WhatsApp message on the day of handover. Attach it to the lease as an annex.
Deposit
Max: Usually 1–2 months rent; furnished or foreigner leases may require more
Rules: Deposit terms depend on the contract — no statutory cap or escrow requirement. State exact return conditions, currency, deadline, and permitted deductions clearly in the lease.
Return deadline: Set a written deadline in the lease; 30–60 days after handover and utility settlement is a practical target. No statutory deadline exists.
Alternatives: Local guarantor (garante), employer letter, additional prepaid rent months, or broker-managed guarantee may be requested if you lack a local credit history.
3. During your tenancy
Utility and condominium reconciliation
Frequency: Monthly for rent; ANDE electricity and ESSAP water are billed monthly; condominium fees are monthly where applicable
Dispute window: Dispute bills immediately on receipt; do not wait until lease end. ANDE and ESSAP have customer service offices for billing disputes.
- - Unexplained condominium fee increases without supporting invoices or meeting minutes
- - Shared meter without an agreed formula for splitting consumption
- - USD rent converted at an unclear or undisclosed exchange rate
- - Utility accounts left in prior tenant's name — risk of inherited arrears
Repairs: Landlord normally handles structural repairs and major appliance faults, but tenants are typically responsible for minor maintenance, AC filter cleaning, and damage from misuse. Put all repair requests in writing with photos and dates.
4. Moving out
Notice period: Commonly 30–60 days, but the lease controls. Fixed-term leases may trigger penalties for early exit unless negotiated. Give notice in writing.
Final handover: Take meter photos, return all keys and access cards, settle condominium and utility balances, and sign a written handover statement with the landlord.
Deposit return: Agree deduction criteria in writing in the original lease. If the landlord delays return, a formal demand letter from a local lawyer typically resolves disputes faster than informal messages. Disputes may be escalated to civil court.
Your tenant rights
Tenant association: No dedicated expat-friendly tenant association in Paraguay. Consumer protection complaints can be filed with the SEDECO (Secretaría de Defensa del Consumidor). For contractual disputes, a local lawyer experienced in property law is the most practical route.
Rent control: No broad rent control for private expat-market rentals in Paraguay. Ley 1295/87 does not impose rent ceilings for standard market leases. Market negotiation and careful contract drafting are the main protections.
Eviction protection: Formal eviction requires a legal process through the civil courts. Informal landlord pressure (changing locks, removing belongings) is illegal. Keep payment records, lease copies, and all written communications.