Buying land in Paraguay's Chaco as a foreigner: the 50 km border rule

Paraguay is one of the more open countries in South America for foreign land buyers, and the Chaco attracts investors from Brazil, Argentina, Europe, North America and Asia. But one rule can void a purchase outright: Law No. 2532/2005, which created Paraguay's border security zone. Whether it affects you depends on two things: your nationality and the exact location of the property.

What Law 2532/2005 says

The law, enacted in February 2005, defines the border security zone as the 50-kilometre strip adjacent to Paraguay's land and river borders.

Under Article 2, unless authorised by an executive decree based on public-interest grounds (the law gives job creation in the zone as an example), nationals of neighbouring countries and companies mostly made up of them may not be owners, co-owners or usufructuaries of rural property within that strip.

Other key provisions:

• Acquired rights: owners who held land before the law took effect are not affected (Art. 3).
• Registered shares: companies and cooperatives that want to hold rural land in the zone must issue registered, non-transferable-by-endorsement shares or certificates (Art. 4).
• Notaries: may not execute deeds for transactions the law prohibits (Art. 5).
• Title certificates: must state whether the property lies wholly or partly within the zone (Art. 7).
• Nullity and fine: prohibited transactions are void, and nullity carries a fine equal to twice the value of the transaction (Art. 8).

Who it applies to

The restriction targets citizens of Paraguay's neighbouring countries: Brazil, Argentina and Bolivia, plus companies where they hold a majority. If you are, say, German, American, Canadian or Chinese, this article of the law does not restrict you; Paraguayans are not restricted either.

The rule covers rural property. In February 2026, foreign-investment lawyer Oscar Mersan told the newspaper Última Hora that urban property (such as lots of up to 360 m² with an urban cadastral account) follows ordinary rules. In his reading, the ban also covers leasing rural land in the strip, and the Public Registry will not record transfers that breach the law, leaving the buyer without registry protection.

Why it matters in the Chaco

All three Chaco departments have international borders:

• Boquerón borders Bolivia and Argentina.
• Alto Paraguay borders Bolivia and, along the Paraguay River, Brazil.
• Presidente Hayes borders Argentina along the Pilcomayo River.

Because river borders count, a ranch on the Paraguay or Pilcomayo river can fall inside the strip even if it feels remote. Inland areas, including much of the Central Chaco, lie outside the 50 km, but only the property's coordinates can confirm that.

Checklist before you buy

Especially if you are Brazilian, Argentine or Bolivian, or buying through a company with partners of those nationalities:

• Georeferenced coordinates: get the survey plan and measure the distance from the whole perimeter to the border. One corner inside the strip is enough to cause a problem.
• Registry certificate: check whether it flags the property as wholly or partly in the border security zone.
• Title history: review the chain of ownership; land that originated with INDERT (the rural development agency) carries extra rules.
• Deal structure: if the land is in the strip, the only legal route is a decree authorisation. Avoid front men or shell companies: the law provides for nullity and a fine, and the notary is liable too.
• Local advice: hire a Paraguayan lawyer and notary who are independent from the seller.

For the full purchase process, see our guide How to buy land in Paraguay.

The wider context

Foreign land ownership is a live topic in the region. In July 2026, Argentine newspaper La Nueva, comparing Mercosur rules amid Argentina's own land-law debate, cited studies estimating that 14% to 19% of Paraguay's territory is held by foreign owners, rising to as much as 60% in some border departments. It is a sensitive issue in Paraguay, so it pays to do things right from the start.

The good news: outside the 50 km strip, the Chaco offers millions of hectares where foreign buyers can purchase land through the normal process.

*General information, not legal advice. Consult a Paraguayan lawyer before buying.*

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*Sources: Law No. 2532/2005 (Paraguayan National Congress library, official text); Última Hora (February 2026); La Nueva (July 2026).*