New value of real estate tax in Paraguay
New Decree
The Executive Branch issued Decree No. 6541/2021, which establishes the new real estate tax values that will serve as the tax base for the determination of the real estate tax and its additional tax for fiscal year 2022. The adjustment made is 7.6% for both urban and rural properties.
This modification worries the real estate sector in terms of the impact it may generate on the final consumer.
The decree dictates that the fiscal values for the year 2022 will be adjusted based on the variation of the Consumer Price Index (IPC), according to data from the Central Bank of Paraguay (BCP), which in the period of the twelve months prior to November 1, 2021 reaches the figure of 7.6%.
However, the Paraguayan Chamber of Real Estate Developers of Paraguay (Capadei) believes that the increase in real estate taxes is unnecessary at this time
In addition, the decree explains that in the face of the current crisis due to the covid-19 pandemic and that it negatively affects the economy of the country and the world, the update (every five years) of fiscal values by the index is postponed for the second consecutive year. of variation of the real estate market, in accordance with Law No. 5513/2015, and that as of the year 2023 the fiscal values will be updated according to the variation index of real estate prices.
Any citizen interested in knowing the amount of the Real Estate Tax that must be paid to their Municipality, can do so through the institutional website http://www.catastro.gov.py/liquidacion_impuestos, section “Inquiry for Urban Property” or “Inquiry for Rural Property”.
