Renting in Paraguay: what the Código Civil says, from five years to forty days
Renting in Paraguay falls under the Código Civil, the civil code of 1985. A lease runs for at most five years. If a lease for an unfurnished house has no end date, it counts as one year. And anyone renting without a fixed term who is given notice has forty days to leave.
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Renting in Paraguay is governed by the Código Civil, the civil code of 1985, in articles 803 to 844. The code itself adds that a special law takes precedence if it provides otherwise (article 804). The three numbers to know: a lease runs for at most five years, without an end date an unfurnished house counts as one year, and anyone renting without a fixed term gets forty days to leave after notice.
| Situation | What the Código Civil says | Article |
|---|---|---|
| Longest term | 5 years; a longer lease is reduced to 5 years | 807 |
| Unfurnished house, no term agreed | counts as 1 year | 808 c |
| Furnished, price per month or week | counts as that period | 808 d |
| Landlord gives notice, no fixed term | 40 days after notice, if you are not two periods behind | 839 b |
| Two months' rent unpaid | landlord can have the lease ended | 837 h |
| After an eviction judgment | carried out within 10 days | 838 |
| Tenant dies | heirs can terminate within 6 months | 841 |
What must the landlord do?
Hand over the house in a state that suits the agreed use, keep it in good condition and carry out the necessary repairs (article 812). That includes wear from normal use, and damage from force majeure or from a defect of the house itself (article 813).
If he does nothing after you have warned him, article 822 lets you withhold the part of the rent that the repair costs. If it is urgent, you may have it done yourself at his expense. So keep your message to the landlord and the invoice.
What must you do?
Pay the rent on time, use the house as agreed and keep it in good condition (article 825). Minor damage caused by those living in the house, you repair yourself. Report a defect as soon as possible. If you do not and it gets worse, you can no longer claim a rent reduction or compensation.
Subletting is allowed, unless the lease forbids it (article 830). A clause that keeps children in your care out of the house is void (article 809).
When you sign, have the condition of the house described, with photos. Article 840 says you return the house as you received it, if that condition was described. Without a description every disagreement at departure becomes your word against his.
What if the house is sold?
Then your lease runs on until its end, but only if it is entered in the register (article 810). With a lease of more than a year it pays to ask whether that is possible.
A new owner can in some cases challenge rent paid in advance. Article 817 protects advance payment of up to six months for a home in town. So do not pay more than half a year in advance.
If you agree on a guarantor, a fiador, article 816 makes him answerable for the rent and all other obligations under the lease, unless that is expressly limited.
What if the lease ends and you stay?
Then the lease is not tacitly renewed. According to article 843 the old lease continues on the same terms until the landlord asks for the house back. He may do so at any time. Anyone who wants to stay therefore signs a new lease.
What must you report to the migration service?
Your address. When applying for the residencia temporal you declare under oath at which address you live, and those details count as a sworn statement. If you have moved by the time you switch to the residencia permanente, you pay 234,154 guaraní extra for changing your details. See the residence routes.
And your house in the Netherlands?
If you rent out your house in the Netherlands while living in Paraguay, Paraguay does not tax that rent. Ley 6380 only taxes income from activities in Paraguay or from property located there. The Netherlands does not let go: for people living outside the EU who own assets in the Netherlands, the Belastingdienst lists the tax-free allowance in box 3 as a deduction. More on this in AOW, pension and tax in Paraguay.
If you want to buy after renting for a while, read buying a house in Paraguay. The order of all the steps is in the route to Paraguay.
In Vertrekklaar this is phase 5 of 5 of the journey, step 5.7: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to Paraguay or go straight to step 5.7 in the open plan.
What this rests on
The facts in this article come from these official pages. Rules change. When in doubt, go by the source, not this article.
- Código Civil (Ley 1183/85), Book III, articles 803 to 844 on leases (BACN) — bacn.gov.py
- Dirección Nacional de Migraciones — your address as a sworn statement with the residencia temporal — migraciones.gov.py
- Dirección Nacional de Migraciones — the fee for changing your details when switching to permanent — migraciones.gov.py
- Ley 6380/2019, article 48 — Paraguay only taxes income from Paraguay (BACN) — bacn.gov.py
- Belastingdienst — deductions for people living outside the EU, with the tax-free allowance in box 3 — belastingdienst.nl
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