Frequently Asked Questions
1When will I get my first returns?
You will receive your first payment after the 2025 harvest is sold and paid for by the buyers. This will be by July 2025. From then, you'll receive annual returns by July each year.
2How long does the titling process take?
The titling process takes about 18 to 24 months from receiving your signed purchase contract. A Paraguayan notary authorized to deal with foreign embassies will notarize your contract. We then apply to the land registry to transfer the lot into your or your company's name. We'll send you the original deeds, land registry extract, and other ownership documents.
3Can I liquidate my investment at any time?
Yes. Your investment (including the titled deed of land) is fully transferrable. You can sell or transfer your lots to others at any time, like any other property. However, your farm management contract must remain in force for its full term to maintain the continuity of the plantation. This process is very similar to the sale of a rented property, where the ownership changes, but the tenants may remain the same.
The fact that the lots are relatively small makes them easier to sell, and if you own more than one, you can sell off a part of your holdings. So, despite the relatively long management contract, your investment is comparatively flexible. The value of a lot naturally increases as the harvest approaches and varies depending on how long the trees have been producing fruits.
The fact that the lots are relatively small makes them easier to sell, and if you own more than one, you can sell off a part of your holdings. So, despite the relatively long management contract, your investment is comparatively flexible. The value of a lot naturally increases as the harvest approaches and varies depending on how long the trees have been producing fruits.
4What happens after the completed production lifetime cycle?
The lifetime of the persimmon trees is about 24 years, and they'll need to be replaced at the end of your 21-year farm management agreement (the agreement is for 21 years because most trees have been growing for 4 years). After completing your initial farm management contract for this term, you can renew for another term. Alternatively, you can sell your lot to another investor at that stage.
5What about taxation?
The management company provides a detailed statement of start-up costs, which are separate from the cost of the land itself. These may be deductible for tax purposes. You may also be able to claim the cost of an annual inspection trip to Paraguay and of attending the annual general meeting of owners. Please contact your accountant for advice on this.
As part of our administrative services to our investors, we’ll process and pay the Paraguayan income tax on the sale of your produce on your behalf (15%), so you’ll receive a net income. Paraguay doesn’t have relevant double taxation agreements with any European countries or the US.
The management company will also pay the land tax as long as the lot is being cultivated and send you a deduction certificate in your name, an important document in Paraguay.
As part of our administrative services to our investors, we’ll process and pay the Paraguayan income tax on the sale of your produce on your behalf (15%), so you’ll receive a net income. Paraguay doesn’t have relevant double taxation agreements with any European countries or the US.
The management company will also pay the land tax as long as the lot is being cultivated and send you a deduction certificate in your name, an important document in Paraguay.
6Can this investment be funded by an IRA (US customers)?
Yes, you can fund this investment through a self-directed IRA.
7Can this investment be used to apply for Paraguayan residency?
Paraguay is an incredibly attractive option for those looking to immigrate to South America with its unbeatable mix of affordability and quality lifestyle. Depending on the investment structure, you can use this persimmon farm investment to apply for Paraguayan residency and, three years later, citizenship. Our expert Paraguayan lawyers will be able to assist you with this process. Contact us for more info.
