The Paraguayan government has introduced new property tax measures for 2026, targeting Asunción’s Historic Centre in an effort to encourage investment, improve habitability, and revitalise one of the city’s most emblematic areas. The changes will take effect in 2026 and form part of a broader strategy to promote urban renewal and long-term residential growth in the capital.
A new tax framework for the Historic Centre
At a national level, the property tax update reflects a 4.1% adjustment, in line with inflation figures recorded by the Central Bank of Paraguay up to November 2025. However, the most significant impact will be felt in the Historic Centre of Asunción, where a new tax zone has officially been established.
The area, now designated as Zone ZU16, had previously been approved by the Municipality but is now formally incorporated into the national tax framework. Its boundaries extend from the Bay of Asunción to Avenida Rodríguez de Francia and Ygatimí, and from Don Bosco, Patricios, and Stella Maris streets to Avenida Artigas and San José.
Properties within this zone will benefit from a reduced tax burden, maintaining the same valuation rates as Urban Zone 7. This includes Gs. 268,365 (approximately US$40) per square metre for properties located on asphalted or cobbled streets, Gs. 135,760 (approximately US$20) per square metre for stone-paved streets, and Gs. 74,194 (approximately US$11) per square metre for unpaved roads.
New category to encourage restoration
One of the most significant changes is the introduction of a specific “Historic Centre” category within the construction valuation system. Previously, buildings were classified simply as “New” or “Old”. The new category lowers valuation rates to encourage restoration, rehabilitation, and new construction within the historic area.
For example, the highest construction quality category, known as “R”, is now valued at Gs. 1,662,277 (approximately US$252) per square metre for new buildings, Gs. 836,665 (approximately US$127) for older constructions, and Gs. 627,499 (approximately US$95) for those located in the Historic Centre. Building age is determined based on records held by the National Cadastre Office.
Housing incentives through Che Róga Porã
The tax measures are complemented by a new phase of the Che Róga Porã housing programme, tailored specifically for Asunción. Under this scheme, loans of up to Gs. 725 million (approximately US$109,870) will be available for the purchase of homes within the city.
The maximum value of properties eligible for financing will be Gs. 1 billion, equivalent to approximately US$ 147,000. The programme also includes the option to build on privately owned land, further expanding access to housing.
Together, these initiatives aim to stimulate private investment, attract new residents, and restore the Historic Centre as a dynamic and liveable part of Asunción’s urban landscape.
