Short answer
Before buying a rental property, compare its asking price with comparable rents in the same neighborhood and calculate returns after vacancy and costs. INE’s 2022 statistical yearbook records rented homes, but it cannot tell you the yield of a specific property. The RUN gives qualified professionals access to title and cadastral reports. Tax treatment depends on use, ownership and tax residence. We checked the sources on September 26, 2026; we have no verified market yield to quote.
Compare sale and rental listings in one area
Collect at least 3 recent sale listings and 3 rental listings in the same neighborhood, with similar size, age, furnishings and shared building costs. Save each link, date and asking price; request documented closed deals where an agent can provide them. INE’s 2022 yearbook reports 11.2% of occupied homes rented in the survey area and 16.6% in urban areas. The table excludes Boquerón, Alto Paraguay, Indigenous communities and collective housing. These are tenure shares, not yields for a unit.
Calculate gross and net yield
Annual gross yield is monthly rent times 12 divided by the total purchase price. For pre-tax net yield, subtract vacant months, management, owner-paid building charges, maintenance, insurance and property taxes; divide by all money invested, including purchase costs. Use one currency and record exchange rates. The result applies to that property and the dated quotes you used; it is not a market average.
Check title before paying a deposit
Ask an independent escribano, a notary who prepares property deeds, to match the title identifier, cadastral record, owner and encumbrances. The RUN offers reports through SIGRE to qualified lawyers and notaries. Also check whether permitted use, building rules and utilities support your rental plan. The linked buying guide covers the deed, registration and the special case of rural land near borders.
Budget tax for your ownership structure
DNIT lists 5% VAT for property rented exclusively as housing and 10% for commercial use. It also distinguishes IRP on capital income for resident individuals and INR for nonresidents. Those categories alone cannot determine your total bill: ownership, tax residence, invoicing and how you operate matter. Before signing, ask a local accountant for a written calculation for your case and check municipal property charges.
Stress-test the deal
- Recalculate with several vacant months and a major repair; get written quotes for management and building charges.
- Visit the property and surrounding streets at different times. Check access, damp, utilities and demand for the planned rental type.
- Plan rent collection, problem handling and a possible sale. An estimate of future appreciation or rent does not replace collected income or a purchase offer.