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It appears that you only have to have a billing contact in Paraguay, no local presence as *such*. According to www.nic.py there are a number of Paraguayan ISPs that will handle this for you. It does sort of imply you need to be a company to get a .com.py domain (and the other 2nd level domains are even more difficult to get), and you have to have a clear reason for wanting the site. They have the right to deny you the application too.
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So, what domain name would you get Hans?
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Not sure... they don't allow cow.py... :-)
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The prices on that site are way inflated ... you might get a better deal if you can get someone local to do the registration.
For example, New Zealand domain names there are US$400 for two years, but loads of NZ registrars do them for NZ$35-ish a year, i.e. about US$20 ...