The Legal System for Foreign Investors buying property in Paraguay
The Paraguayan Law N. 117/92 legislates the system of national and/or foreign investments ; it aims to stimulate and secure within a framework of full equality the National and/or Foreign investments, aiming at the promotion of the economic development of the country.
The aforementioned rule establishes that the foreign investor has the same guarantees, rights and obligations that the Paraguayan Law sets for domestic investors. The private investments does not require prior authorization or additional registration provided for in laws framing societies from the point of view of corporate and tax.
This law also guarantees the right of property for national and/or foreign investors and a regime of freedom of change without restrictions for the entry and exit of capitals or for referral to outside payment of dividends, interests, commissions, royalties for technology transfer, and other concepts.
It also establishes that investors can freely hire insurance investments in Paraguay or abroad. It guarantees a free trade regime, which includes:
the freedom of production and marketing of goods and services in general, the freedom of free pricing (with legal exceptions)
Freedom of import and export of goods and services ( also with certain exceptions and legal characteristics).
In tax matters, it establishes that the foreign and domestic investments are subject to the same tax (Law No. 125/91) regime and they must respect the Work and Social Security laws of the country.
Also this Law, expressly recognizes joint investments between , national and/ or foreign investors (Joint ventures).
On the other act, the law No. 434/94 legislates obligations in foreign currency, defining that legal acts, obligations and contracts conducted in foreign currency are valid and will be payable in the currency agreed on.
Also, establishes obligations on foreign currency will be guaranteed garments with registrations, mortgages, warrants or other forms of guarantees, the amount expressed in the currency of the obligation must be registered at the respective Public Registry.
Contact the Gateway to South America team to learn about the best investment opportunities in the region. The company is a benchmark for foreign investors wishing to invest in Argentina, Brazil, Chile, Paraguay, Peru and Uruguay, providing expert advice on property acquisition and investment tours.
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