Paraguayan investors are a quiet but growing force in Florida real estate — and you can buy, finance, and eventually sell a US rental without ever holding a US credit score. The cycle has three chapters: buying in dollars, financing on the property’s rent, and planning for FIRPTA at the exit. Buyers from Asunción, Ciudad del Este, and Encarnación usually arrive with the dollars ready. The other two chapters — plus Paraguay’s territorial tax system — are where planning protects the profit.
Why Paraguayan investors choose Florida
A rental in South Florida earns in dollars while the guaraní follows the farm cycle, and it can be managed entirely from Paraguay. Doral, Weston, and Brickell hold established Latin American communities, Spanish-speaking property managers, and steady tenant demand. Wealth built in cattle, soy, and trade already moves through dollar accounts, so a Florida property simply turns idle capital into monthly income secured by a US deed.
Financing without a US credit score
Paying all cash is optional. Foreign national loans qualify the property instead of the borrower: the appraiser prepares a market-rent schedule, the lender compares that rent to the full monthly payment, and a DSCR of 1.0 or better carries the file. Plan on 25 to 30 percent down, reserves of 6 to 12 months, and pricing slightly above resident programs. Test your target property with our DSCR calculator before you sign a contract.
Building a file the lender can verify
For most Paraguayan investors, the paper trail decides the timeline — not the income math. Lenders and title companies will ask for:
- Seasoned dollars: funds already sitting in a US or international account close fastest and cleanest.
- A clear trail: statements showing where the down payment has lived and how it moved.
- A bank reference: a letter from your Paraguayan bank or an international credit report stands in for FICO.
- A remote closing plan: sign at the US Embassy in Asunción, or apostille the package under a power of attorney.
FIRPTA when you sell
The exit is where planning pays most. FIRPTA lets the IRS withhold up to 15 percent of the gross sales price at closing — a deposit against your real tax, not the tax itself. Our guide on what is FIRPTA covers the mechanics, and a Form 8288-B filed before closing can reduce FIRPTA withholding to your actual expected tax. There is no comprehensive income-tax treaty between the United States and Paraguay, but Paraguay’s largely territorial tax system generally leaves income earned abroad outside its reach — for many owners, the US filing is the only income-tax bill on the sale. Confirm both sides with a cross-border CPA. This article is general information, not tax advice; we coordinate with cross-border CPAs on every file.
A typical deal
A family from Asunción buys a $360,000 townhouse in Doral with dollars held abroad for years. They put 30 percent down and finance $252,000 with a foreign national DSCR loan; the rent schedule shows $2,750 against a $2,330 full payment — a 1.18 DSCR. They sign with an apostilled power of attorney and never leave Paraguay. Six years later they sell for $445,000: a Form 8288-B filed before closing caps the withholding near their actual tax of about $13,000, instead of $66,750 locked up for a year.
Investing from Paraguay?
Alpha Equity Lending works with Paraguayan investors across South Florida — financing without US credit, ITIN timing, and FIRPTA planning alongside your cross-border CPA. Tell us about your target property through our submit your deal page and we will map the whole cycle with you — in English or Spanish.
Have more questions? Our foreign national mortgage FAQ answers the 30 questions investors ask most, from down payment and reserves to FIRPTA and estate tax.
By Andres Jara — Alpha Equity Lending (NMLS #1855083). 20+ years in real estate finance, an MS in Finance, and an active South Florida investor and landlord.
