What does Paraguay property actually yield? The net number, not the brochure number.

Buy a US$ 1,500–2,000/m² apartment in Villa Morra, Carmelitas or Las Mercedes and let it long-term, and the gross yield lands at roughly 6–8% (The Wandering Investor, 2026). That is the number agents quote. The number you keep is 4–6% net, after you strip out vacancy, the property manager's cut, condominium *expensas*, the 1% Impuesto Inmobiliario and income tax.

The spread between gross and net is where most foreign owners get surprised. A US$ 200,000 two-bed renting at US$ 1,000–1,200/month grosses ~7%; lose one month a year to turnover, pay a manager 8–10% and an accountant for the IRP filing, and you are closer to 5% net. That is still a strong real return in a USD-denominated, low-tax market — but plan around the net, not the gross. Verdict: treat 5% net as the realistic base case for a long-term Asunción let.

Short-term looks better per night and worse per year, because Asunción is a thin, seasonal short-stay market. Independent data puts citywide occupancy at about 42.6%, an average daily rate near US$50, and RevPAR of ~US$22 — roughly US$3,950 in average annual revenue per listing across 744 active units (AirROI Asunción, 2026). Best-in-class units (top 10%) hit ~US$38 RevPAR; entry-level units sit at ~US$12. The dispersion is the whole story: a furnished, professionally managed unit in Carmelitas or Recoleta near offices and clinics can clear 10%+ gross, while an average listing barely beats a long-term contract once you net out cleaning, channel fees and 50%+ empty nights.

Verdict: short-term wins only with a prime micro-location plus a real manager — otherwise the long-term contract is the better risk-adjusted return.

Central Asunción has an oversupply problem. Years of *en-pozo* tower construction along corridors like Avenida Molas López have outrun demand, and vacancy in some central new-build towers runs near 30% — which is exactly why a furnished unit sits empty while the brochure promised 8%. Pick the building, not just the district.

The recurring drags on a long-term let: condominium expensas (US$1–2/m²/month per Civis, 2026), 1% Impuesto Inmobiliario on fiscal (not market) value, a property manager at 8–10% of rent, periodic capex, and at least one month of void per turnover. For short-term, swap in cleaning, channel commissions and far higher management fees — typically 20–30% of revenue. A hands-off owner abroad should budget the manager either way; self-managing a short-let across time zones is how the 10% gross quietly becomes 5% net.

Verdict: model 1–2 months of annual vacancy plus the full management line before you believe any quoted yield.

Paraguay taxes only Paraguayan-source income — the territorial regime confirmed by PwC's tax summary. Your foreign salary, dividends and overseas rent are not taxed here. But rent from a Paraguay flat *is* Paraguayan-source, so it is taxable however you hold it.

For a Paraguayan tax resident, rental income falls under IRP-RGC (capital income) at a flat 8% (Ley 6380/2019; GoParaguay, 2026). Residential long-term rent also carries IVA at the reduced 5% rate, not the standard 10%. If you let without establishing Paraguayan tax residency, your rent is taxed under the non-resident regime — a withholding on the Paraguayan-source payment, materially higher than the resident 8%, which is one reason owners who plan to rent usually take residency and a RUC. Short-term hospitality-style letting is more likely to trip the standard IVA and a RUC obligation than a quiet long-term contract.

Verdict: become a tax resident before you rent — the 8% IRP-RGC + 5% IVA path is far cheaper than non-resident withholding.

For a single flat you live in part of the year and let the rest, direct ownership in your own name is cleaner — one IRP filing, no annual company accounting, simplest exit. The SRL earns its keep when rental is the point: a portfolio, several units, or estate planning across heirs.

A Sociedad de Responsabilidad Limitada owns the asset, signs the leases, and pays a flat 10% IRE (corporate income tax) on net profit. It ring-fences liability, lets you deduct expenses cleanly against rental revenue, simplifies transferring a property (you sell shares, not the title), and is the same vehicle that can qualify for Ley 60/90 incentives if there is a build-out or operating component. It needs two shareholders minimum and — importantly for foreigners — no Paraguayan partner. The trade-off is real cost: incorporation via SUACE, an accountant on retainer, and the company's own filings. The arithmetic flips on volume: at one apartment the 8% personal rate usually beats 10% IRE plus accounting; across three or more units the deductions, liability shield and clean transfer mechanics tend to win.

See the dedicated ownership-structures page for the full direct-vs-SRL model. Verdict: own a single home directly; route a rental portfolio through an SRL.

The honest framing competitors avoid: you do not buy Paraguay for the yield alone. You buy a USD-denominated, full-freehold (Ley 117/91) asset in a low-tax, growing economy, then let the rent cover holding costs while the capital compounds. Premium-district prices have been rising mid-single digits a year, and select sub-markets run faster from a lower base.

The yield is the kicker, not the thesis — which is why net 4–6% is a perfectly good outcome here rather than a disappointment. It is positive real cash flow in hard currency, with capital appreciation on top, in a market where foreigners hold the same property rights as citizens and pay roughly 5–6% total to close and ~1% a year to hold. Cross-reference the property-prices page for the appreciation picture, and moveparaguay.com's tax guide for how the territorial regime interacts with your home-country filing.

Verdict: underwrite the deal on capital growth + 5% net rent, not on a 10% gross that assumes everything goes right.

Most of our foreign-owner clients never collect a rent cheque in person. A competent local property manager handles tenant placement, the lease under Paraguayan law, *expensas*, repairs and the rent remittance, typically for 8–10% of long-term rent or 20–30% of short-term revenue. For short-term, the manager also runs listings, dynamic pricing, cleaning turnover and guest comms — the difference between top-decile RevPAR and an average listing is almost entirely operational.

We introduce vetted managers in Asunción, San Bernardino and Encarnación rather than running rentals ourselves; the introduction is part of the buy-side mandate, and we are not paid by the manager. Rents are commonly USD-denominated, which removes guaraní FX risk, and remittance abroad through the banking system is routine once you hold a RUC and a local account. Verdict: line up the manager and the bank account before completion, not after the keys.