Obtain tax clearance from the Municipality
Agency: Municipality
The notary obtains a tax clearance certificate regarding the payment of Property Taxes and Special Urban Taxes at the Municipality.
Time and cost: 20 days, PYG 162,504 (2 “jornales”. The value of each jornal is Gs 81.252.)
Obtain a non-encumbrance certificate (“Certificado de libre gravamen o condiciones de dominio”) and a Certificate on Free Disposability of Assets (“Certificado de anotaciones personales”)
Agency: Public Registry (Direccion General de los Registros Publicos)
The notary obtains a certificate of Non-encumbrance and a certificate stating that the selling company has no inhibitions to sell the property (Certificate on Free Disposability of Assets) at the General Direction of Public Registries.
According to law 879/1981, it is mandatory for notaries to obtain a Non-encumbrance Certificate. The users can download the forms for free on the website of the Judiciary http://ingresosjudiciales.csj.gov.py/LiquidacionesWeb/formulariosParticulares.seam. The payment of the certificate can be made online from the Judicial Branch’s website through Web Banking. The non-encumbrance certificate is issued within 10 days.
Since the entry into force of law N° 886/14 of July 29, 2014, the notaries also have the option to request online the certificate on Free Disposability of Assets through the official website of the General Direction of Public Registries http://gestiones.csj.gov.py/AnotacionesPersonales/login.seam. The Certificate on Free Disposability of Assets could be issued in 24 hours using the online option.
Time and cost: 10 days, PYG 325,008 (2 “jornales” per certificate. 2 certificates are required. The value of each jornal is Gs 81.252.)
Obtain a cadastre certificate
Agency: National Service of Cadastre (Servicio nacional de catastro)
According to the cadastral law (Law 125/91 “Establishing the New Tax System,” Article 64), it is mandatory for the notary to obtain a Certificate of Cadastre (or Zoning Certificate) from the National Service of Cadastre. Each parcel will require one certificate (“cuenta corriente”). The notary fees include the cadastral certificate fees and the certification established in the Resolution of Cadaster SNC 214/2016.
Following the resolution SNC Nª401 of August 14, 2018, notaries can now request cadastral certificates online accessing the electronic file SNC https://www.catastro.gov.py/servicio-linea/#!/. For obtaining the cadastral certificate, the notary must fill the online form and upload the corresponding supporting documents including the Property title, Photocopy of buyer and seller’s ID and the non-encumbrance certificate. However, the certificate can be requested online only if the electronic database matches with the required documents and the legal act is loaded in its database. Most of the time the data do not match, or the legal act is not loaded. Therefore, the procedure is often carried out in person.
Time and cost: 10 days, PYG 162,504 (2 “jornales”. The value of each jornal is Gs 81.252.)
Preparation and notarization of the transfer deed by a public notary
Agency: Public notary
Once all the previous documents have been collected, a notary public prepares and notarizes the transfer deed. As this is a transfer between two tax-registered companies the notary will not retain the 1.5% VAT on the sale.
The documentation shall include:
- Municipal tax clearance certificate (obtained in Procedure 1)
- Non-encumbrance certificate (Obtained in Procedure 2)
- Certificate on Free Disposability of Assets (Obtained in Procedure 2)
- Cadastre Certificate (obtained in Procedure 3)
- Certificate of payment of water and electricity services
- Photocopy of buyer and seller’s ID
- Property title
Time and cost: 10 days, PYG 12,262,637.35
Notary fees is 0,75% of the property value according to the following schedule, (plus 10% VAT):
Value of property (in Gs) : Notary fees (% of property value)
- Below 1,000,000: 5 minimum wages (jornales)
- From 1,000,001 to 50,000,000: 2.00%
- From 50,000,000 to 75,000,000: 1.75%
- From 75,000,000 to 100,000,000: 1.50%
- From 100,000,000 to 150,000,000: 1.25%
- From 150,000,000 to 200,000,000: 1.00%
- Above 200,000,000: 0.75%
As of 2006, the seller must also pay 1.5% of property value as VAT (5% VAT rate, applied to 30% of the value of the property= 1.5% of the value of the property) according to art. 7° of resolution 1421/05, regulating art. 91° of law 2421/04.
Payment of the Municipal Tax on transfers
Agency: Municipality of Asuncion
The Municipal Tax on transfers is paid (usually by the notary) at the Municipality after the contract has been notarized. In Asuncion, the tax is 0.3% of the property value. In other cities of the country it is 0.2%. The amount of the tax will be estimated according to the same principles applied to the Judiciary Fee.
Time and cost: 1 day, PYG 4,905,054.94 (0.3% of property price)
Registration of the notarized documents at the Public Registry
Agency: Public Registry (Direccion General de los Registros Publicos)
The notarized deed is recorded at the Directorate General of Public Records. Court fees can be paid online at the authorized banks, payment is no longer performed in the Directorate General of Public Records. The documentation shall include:
- The testimony or copy of the deed issued by a notary public (obtained in procedure 4);
- Municipal tax compliance certificate issued by the Municipality of Asuncion.
Payment of fees can be done online through Web Banking at the Judicial Branch’s website: http://ingresosjudiciales.csj.gov.py/LiquidacionesWeb/home.seam
Time and cost: 15 days, PYG 12,131,636.32 (Charges for administrative expenses, 0.4 jornales + 0.74% of property value (registration fee))
