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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.

Capital: Asuncion
Region: Americas
Language: Spanish
Currency: PYG (Gs.)
Cost of living: Very affordable (index 25)
Emergency: 911
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Scam Warnings

Common scams targeting expats in Paraguay.

Most Paraguay scams targeting expats exploit language gaps, property and residency mythology, informal cash culture, and WhatsApp-based trust. Paraguay's Dirección General de Migraciones issued official fraud warnings about fake invoices and third-party residency scams, and SEDECO (Secretaría de Defensa del Consumidor y el Usuario, sedeco.gov.py) is the primary consumer protection authority under Law 1334/98. Golden rules: obtain itemised official receipts for every government payment, use an independent escribano (notary) for any property transaction, and never transfer money on the basis of an unverified call or message.

Fake residency package and false immigration invoices

critical

A pervasive scam targeting new expats. Agents sell outdated or invented "guaranteed" permanent residency packages without following the current DNM (Dirección Nacional de Migraciones) process under Law 6984/2022. A particularly documented variant involves fake invoices mimicking Migraciones letterhead and demanding payment for "government filing fees" or "official processing costs" — the DNM issued an official fraud warning after this became widespread. A common pattern involves a low initial quote (e.g. USD 1,800 "complete residency"), followed by additional demands once the client has invested time and money.

How to spot it
  • - Agent uses the word "guaranteed" for any residency or cédula outcome — the government cannot be obligated by a third party
  • - Invoice or payment request does not have a corresponding official DNM receipt (comprobante) you can verify
  • - Agent refuses to provide an itemised written fee breakdown distinguishing their fees from actual government costs
  • - Agent demands or retains original documents (passport, birth certificate) beyond what the process requires
  • - Process described does not match current DNM requirements — verify at dnm.gov.py or directly at a DNM office
What to do: Obtain official DNM receipts for every government fee payment. Verify current residency requirements at dnm.gov.py or in person at a DNM office in Asunción. Use only lawyers or gestores with independently verifiable references and written, itemised engagement letters. Report fraud to SEDECO (sedeco.gov.py) and police (911).

Property title fraud and unresolved encumbrances

critical

Paraguay's land registry system carries systemic risks for buyers who skip due diligence. Common problems include liens (hipotecas), inheritance disputes between multiple heirs, cadastral mismatches between the actual land boundary and the title, unpaid real estate taxes (impuesto inmobiliario), and in rural areas, contested or duplicate ownership claims. Sellers may discourage using an independent escribano (notary) and route buyers to their own affiliated professional. Paraguay's escribanos have the power of "fe pública" — documents they authenticate carry legal presumption of truth — making the selection of an independent, trustworthy professional essential.

How to spot it
  • - Seller discourages you from hiring your own independent escribano and insists their lawyer handles the entire transaction
  • - Seller cannot provide or delays producing the boleta de informes from DGRP (Dirección General de los Registros Públicos) — a 30-year title history
  • - Rural land is priced unusually low relative to comparable properties, which can indicate contested ownership
  • - Seller rushes the reservation payment before due diligence is complete
  • - Title chain is incomplete or shows gaps in the transfer history
What to do: Hire your own independent escribano before paying any reservation fee. Request the boleta de informes from DGRP showing the full title history, liens, and ownership. Verify tax payment status and cadastral boundaries. Never wire a deposit to a personal account — use escrow at a reputable escribanía. Report title fraud to police (911) and SEDECO.

Rental deposit fraud and fake listings

critical

Scammers copy genuine property listings from Facebook Marketplace, Compra Venta Paraguay, and WhatsApp expat groups, re-advertise them at below-market prices, and collect deposits from multiple victims by claiming the owner is abroad or demand is high. Victims who pay lose their deposit and have no legal recourse against a fraudulent third party.

How to spot it
  • - Rent is noticeably below market for the area (Asunción neighbourhoods like Villa Morra, Carmelitas, Mburucuyá)
  • - Landlord or agent is unavailable for an in-person viewing or even a live video walk-through
  • - Payment requested to a personal bank account or via cryptocurrency before signing any contract
  • - Listing photographs appear elsewhere online for a different property (reverse image search)
  • - Urgency: "another family is signing tomorrow — deposit now to secure it"
What to do: Always view the property in person before any payment. Verify that the person receiving the deposit is the actual owner or their authorised agent by checking the property title. Sign a written lease before any transfer. Report fraud to police (911) and SEDECO.

Currency exchange fraud and counterfeit guaraní notes

warning

In border areas (Ciudad del Este, Encarnación, Pedro Juan Caballero), street money changers ("cambistas") operate outside regulated casas de cambio. Common tactics include short-changing by exploiting confusion over large guaraní denominations, passing counterfeit 50,000 PYG and 100,000 PYG notes, or disputing agreed rates after counting. In Ciudad del Este, unofficial "customs guides" demand 200,000 PYG or more for free government forms and services.

How to spot it
  • - Exchanger operates on the street rather than at a licensed casa de cambio or bank
  • - Exchange rate is significantly better than posted rates at regulated locations — this is a red flag, not an opportunity
  • - Exchanger counts and recounts notes quickly or takes them to count "privately"
  • - New large-denomination notes that feel slightly different from known genuine notes
  • - Unsolicited "guide" at the border offers assistance with customs, insisting it is mandatory
What to do: Use only regulated casas de cambio or banks for currency exchange. Count all notes at the counter before leaving. Use Banco Central del Paraguay (bcp.gov.py) resources to verify current note security features. Refuse all unsolicited border guide services — all official customs assistance is free. Report to police (911).

Fake police or immigration fine demand

warning

Callers impersonate Policía Nacional officers or DNM officials and claim the victim has an outstanding migration fine, traffic violation, or compliance failure that must be paid immediately by bank transfer to avoid arrest or deportation. These calls often target recent arrivals who are uncertain about their compliance status.

How to spot it
  • - Urgent WhatsApp or phone call demanding immediate payment of a fine — real fines are served in person or by official written notice
  • - Threat of immediate arrest or deportation if payment is not made within the hour
  • - Payment must go to a personal bank account rather than an official government payment channel
  • - Caller refuses to direct you to the relevant government office or give you an official reference number
  • - Caller discourages you from calling the DNM or police back on a known official number
What to do: Hang up. Contact DNM directly via their Asunción offices or dnm.gov.py to verify any supposed outstanding obligation. Contact the Policía Nacional (911) to verify any alleged police matter. Never transfer money to a personal account for any government fine. Report the call to SEDECO and police.

ATM skimming and distraction theft

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ATM fraud via physical skimming devices occurs primarily at standalone ATMs in busy commercial areas and at border crossing points. A common variant involves a "helpful stranger" who distracts the victim while an accomplice observes the PIN or swaps the card.

How to spot it
  • - Card slot feels loose or has an unusual overlay or attachment
  • - A stranger approaches to "help" while you use the ATM
  • - ATM is located in a dark, isolated, or poorly monitored spot
  • - Someone is positioned to observe your PIN entry from nearby
What to do: Use ATMs inside bank branches or shopping malls during staffed hours. Cover the keypad with your hand when entering your PIN. Check your account balance immediately after each transaction. Freeze your card and report to your bank immediately if you suspect compromise.

Overpriced residency document service

warning

Middlemen charge high fees for routine document services — apostilles, police clearance certificates, translations — while hiding the actual government cost. In some cases they retain the client's original documents longer than necessary or charge for services the client could obtain directly.

How to spot it
  • - No itemised quote distinguishing their service fee from the underlying government fee
  • - Cannot explain each document in the process or why each step is necessary
  • - Retains original documents (passport, birth certificate) beyond the stated processing time without explanation
  • - Fee is paid entirely in cash with no formal receipt
What to do: Always ask for an itemised quote showing the government fee separately from the service fee. Request an official comprobante (receipt) for every government payment. Verify standard document costs directly with the relevant government office before engaging any intermediary.

Informal employment with no IPS registration

critical

Employers promise to formalise employment later — often after a "trial period" — but never register the worker with the Instituto de Previsión Social (IPS). Unregistered employees lose access to the public health system, accumulate no pension entitlement, and have no documentary basis for residency or legal employment verification. This is particularly risky for expats whose residency status may depend on formal employment.

How to spot it
  • - Employer pays salary in cash only with no payslip or formal earnings document
  • - No written employment contract is provided before work begins
  • - Employer avoids direct questions about IPS registration or says it will happen "soon"
  • - Employer cannot provide or avoids showing the IPS registration number for the company
What to do: Require a written employment contract and IPS registration proof before relying on any employment arrangement. Verify IPS registration directly with the employer's IPS account number. Report undeclared employment to the Ministry of Labour or SEDECO. Contact the IPS (ips.gov.py) to verify your own registration status.

WhatsApp account takeover and impersonation

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Fraudsters compromise or clone WhatsApp accounts, then message the victim's contact list impersonating them and requesting urgent money transfers. The account takeover is typically obtained by tricking the target into sharing the 6-digit WhatsApp verification SMS code under a pretextual reason.

How to spot it
  • - Anyone asks you for a 6-digit SMS code — WhatsApp or any other service will never ask you to share this with another person
  • - A message from a known contact's number requesting an urgent money transfer with an explanation that feels out of character
  • - New phone number contacts you claiming to be someone you know with a different number "because my old phone broke"
  • - Request is for an unusual payment method such as cryptocurrency or a new bank account
What to do: Enable two-step verification in WhatsApp (Settings → Account → Two-step verification). Never share any SMS verification code with anyone. Always confirm urgent money requests by calling the supposed sender on their voice line directly. Report to police (911) if your account is taken over.

Reporting

Where to report: Police emergency: 911. SEDECO (Secretaría de Defensa del Consumidor y el Usuario — consumer fraud): sedeco.gov.py. BCP (Banco Central del Paraguay — financial and banking fraud): bcp.gov.py. DNM (Dirección Nacional de Migraciones — immigration document fraud): dnm.gov.py. DNIT (Dirección Nacional de Ingresos Tributarios — tax invoice fraud). Ministry of Labour for undeclared employment.

Consumer helpline: SEDECO consumer complaints portal: sedeco.gov.py — primary consumer protection authority under Law 1334/98 (Ley de Defensa del Consumidor y el Usuario). Local police and 911 for urgent incidents. BCP: bcp.gov.py for banking and financial fraud. Paraguay does not have a general EU-style 14-day cooling-off right; Law 1334/98 provides limited cancellation rights for certain contract types — consult SEDECO for specific situations.