Dealing with Construction Permits in
Paraguay
Listed below is detailed summary of the procedures, time and costs to build a warehouse —including obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.
The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.
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Building a warehouse
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Estimated Warehouse Value:
PYG 1,585,231,666
- City: Asuncion
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
Request and obtain a certificate stating that there are no prohibitions affecting the property (certificado de no interdicción) duly notarized by an Escribano Público
The no-objection certificate (certificado de no interdicción) is a statement issued by public registries certifying that an individual (or legal entity) does not have any legal prohibition or restriction to sell or encumber a property. It is mandatory for all types of construction projects.
The cost of the certificate is calculated as follows: PYG 12,600 (the fee, or arancel) + PYG 1,000 (the form, or formulario) + PYG 66,400 (notary fee, or honorarios escribanía) = PYG 80,000.
Agency: General Department of Public Registries (Dirección General de los Registros Públicos)
|
10 days
|
PYG 80,000
|
| 2 |
Request and obtain calculation basis form and affidavit
Agency: Municipality
|
1 day
|
no charge
|
| 3 |
Pre-approval consultation with Municipality on Project
It is common for construction companies to consult with the relevant department at the municipality over the project drawings and designs before submitting the documents.
Agency: Municipality
|
1 day
|
PYG 611,000
|
| 4 |
Request and obtain building permit
The application must be accompanied by the following documents:
1. The property title.
2. The identity card of the landowner.
3. Proof of payment of municipal taxes (sewage service and garbage collection).
4. The builder’s identity card and a valid municipal registration or license.
5. Three sets of plan copies signed by the responsible builder and the owner of the land.
6. A structural calculation of the concrete structure signed by an engineer and the owner of the land,
7. The construction work budget signed by the owner and the responsible builder.
8. Fire prevention maps, if required.
The legal time limit, 30 days. On average, it takes 63 days.
The cost is calculated according to an annual schedule based on the building type. There is only one formula for calculating this cost, which is 1.7% over the municipal value. In the case considered here, the cost is PYG 671,900 x 1,300.6 square meters = PYG 14,855,843.3. Note that the municipal fee is determined on an annual basis, and 20% of this cost (PYG 2,971,168.60) must be paid in advance, while the remaining 80% (PYG 11,884,674.60) is paid when the building permit has been obtained.
Agency: Municipality
|
21 days
|
PYG 14,855,843
|
| 5 |
Receive inspection by the Municipal Authority
According to Municipal Regulation No. 26104/90 (Ordenanza Municipal 26104/90):
1. All inspections must be carried out within 2 to 5 business days, excluding the day of the request. The final inspection should be undertaken in a time frame that varies from 15 to 20 days (Article 46).
2. If inspections are not carried out within the stated time frames, the applicant is entitled to file a claim before the relevant municipality. The municipality must then take the necessary steps so that the inspection is be completed within 48 hours (Article 47).
The site is inspected when the building permit application is filed. In practice, however, there is not much follow-up, and a maximum of two inspections are done throughout the process (the initial and final inspections).
Agency: Municipality
|
1 day
|
no charge
|
| * 6 |
Request and connect to sewage service
Assuming 0.75 inch water/ sewage meter and a PVC pipeline on an asphalt-paved street, the cost is 40% of the minimum wage + 100,800 Gs/ml of branch sewer (average 8 ml ). The following fees apply:
- Hook-up fee: PYG 388,800
- Cost of work: PYG 806,400
Agency: Essap S.A
|
15 days
|
PYG 1,195,200
|
| * 7 |
Request and connect to potable water service
Agency: Water Company
|
15 days
|
PYG 528,000
|
| * 8 |
Request and connect to telephone services
Agency: Copaco
|
15 days
|
PYG 350,000
|
| 9 |
Request final project approval and final inspection
This includes the architecture, structure and fire prevention, and use restriction. The municipal inspector checks the site, after which a final inspection certificate is granted. Following the final construction work inspection, the Construction Work Department (Departamento de Obras) sends the whole file to the Cadastre Office for registration (Departamento de Catastro de la Municipalidad).
Agency: The respective Municipality
|
1 day
|
PYG 15,594,194
|
| 10 |
Receive final inspection by Municipal authorities and obtain approval
Agency: The respective Municipality
|
80 days
|
no charge
|
| 11 |
Register the building with the Treasury Department (Cadastre Office)
Agency: Ministerio de Hacienda (Departamento de Catastro)
|
4 days
|
PYG 11,000
|
| 12 |
Request and obtain authenticated photocopy notarized by an Escribano Público
Registration of the warehouse will facilitate its sale and increase its value. This is a commonly practiced procedure.
Agency: Escribano Público
|
1 day
|
PYG 20,000
|
* Takes place simultaneously with another procedure.