How much does a real estate agency charge in Paraguay?

How much does it cost to sell or rent out a property through a real estate agency? In Paraguay, published market references put sales commissions at around 5% to 5.5% of the sale price. For finding a tenant, the usual practice is one month’s rent, split equally between landlord and tenant.

These figures are market references, not a single statutory fee. Before engaging an agency, confirm in writing how much it charges, who pays, what is included and when payment is due.

Commissions at a glance

Transaction or service	Reference fee	Who pays?
Sale	Around 5% to 5.5% of the sale price, negotiable	Usually the seller
Finding a tenant	One month’s rent, charged once	Usually 50% paid by the landlord and 50% by the tenant
Lease extension or renewal	Generally no new brokerage commission; some agencies charge for handling the process	Check the agency’s terms
Rental management	Fees separate from tenant placement	The landlord, under the management agreement

Among published references, ABC Color cites a sales commission of 5.5%, while TuLugar indicates 5%. For rentals, Marilú Alsina & Asociados publishes a fee of one month’s rent shared between both parties and no management commission on renewal. Confirm the terms with your chosen agency.

How much does it cost to sell a property?

The commission is usually calculated as a percentage of the sale price. It may be negotiated depending on the property, the scope of the service and the terms of the agency agreement.

For example: on a sale of USD 150,000, an agreed commission of 5% amounts to USD 7,500, before VAT if this is charged separately.

The commission is subject to VAT. Before comparing proposals, ask whether the quoted percentage already includes VAT or whether it will be added.

You should also clarify when the fee becomes payable. Do not assume it will necessarily be paid when the title deed is signed. The agreement should specify what triggers entitlement to the commission and when payment is due.

How much does it cost to find a tenant?

The usual practice is a commission equivalent to one month’s rent, divided as follows:

• 50% paid by the landlord.
• 50% paid by the tenant.

It is paid once, when the lease is signed. This arrangement appears, for example, in the fees published by Marilú Alsina & Asociados.

For monthly rent of Gs. 3,500,000, the total commission would be Gs. 3,500,000, with each party paying Gs. 1,750,000, subject to the VAT treatment stated in the quotation.

The commission, advance rent and security deposit are separate items. Ask for an itemised breakdown so you know how much you need to pay at the start of the tenancy and what each payment covers.

Is there a fee for extending or renewing the lease?

Generally, no new brokerage commission is charged when the same tenant stays in the property through a lease extension or renewal.

However, some agencies charge a fee for handling this process. It is therefore worth asking at the outset:

“If the same tenant stays, is there a charge for extending or renewing the lease?”

Ask for the answer to be included in the service terms. One agency’s policy should not be assumed to apply to another.

Finding a tenant and managing the rental are different services

The brokerage commission covers the work involved in securing the tenancy: marketing the property, handling enquiries, arranging viewings, assessing applicants and supporting the lease process, according to the agreed scope.

Rental management continues afterwards and may include:

• Collecting and monitoring rent payments.
• Providing owner statements.
• Communicating with the tenant.
• Coordinating repairs.
• Monitoring obligations under the lease.

These services carry their own fees. If you want to delegate management of the property, ask for a proposal that clearly separates the cost of finding a tenant from the cost of managing the rental.

What does the Civil Code provide?

Articles 951 to 958 govern brokerage contracts. Their main provisions include:

• A broker is entitled to remuneration if the transaction is concluded as a result of their involvement.
• In the absence of an agreement, professional tariffs or fee schedules, a judge determines the amount and its allocation according to customary practice or, failing that, equity.
• An excessive fee may be reduced by a judge at the request of the party required to pay it.
• The broker’s expenses are not reimbursable without an express agreement. Where reimbursement has been agreed, those expenses may be payable even if the transaction does not proceed.
• The broker must disclose known circumstances that could influence the valuation and security of the transaction.

What happens if two agencies are involved?

Article 955 gives each participating broker a share of the remuneration. It is therefore advisable to clarify the total commission and how it is divided, as well as any services commissioned separately.

Another agency’s involvement should not result in an unexpected charge for the client.

What should the service include?

The percentage alone is not enough to compare two proposals. Ask the agency to specify the work it will carry out:

Stage	Services to clarify
Preparation	Price analysis and collection of documents
Marketing	Photography, listings and advertising channels
Viewings	Handling enquiries and coordinating prospective buyers or tenants
Negotiation	Presenting offers and agreeing terms
Documentation	Preparation and coordination with the notary or lawyer, as appropriate
Completion	Support through signing and the agreed property handover

Clarifying responsibility for each task helps avoid misunderstandings. The agency’s support should be coordinated with the legal, notarial and technical checks required for the transaction.

Ask these seven questions before engaging an agency

1. What is the commission, and what amount is it calculated on?
2. Who pays it, and in what proportions?
3. Is VAT included or added separately?
4. Which services are included, and which expenses are charged separately?
5. What triggers entitlement to the commission, and when is payment due?
6. Is there a charge for extending or renewing the lease?
7. What terms apply if the agreement is exclusive or another agency is involved?

The answers should be recorded in the agency or service agreement before work begins.

Our recommendation

Choosing a real estate agency also means understanding how it works and what it commits to doing. Compare the total cost, included services and terms of engagement, as well as the percentage.

Looking to sell, rent out or delegate the management of your property? Contact CALISTA Inmobiliaria for a tailored proposal, with clearly defined services and fees from the outset.