Homosexuality was legalised in 1990 after Law 104/90 was enacted, removing all references to sodomy and homosexuality in Article 325 of the Paraguayan Penal Code.

The Paraguayan civil code adopted in 1991 defines marriage as a union between a man and a woman.

On 5 October 2017, the Minister of Education and Science Enrique Riera signed Resolution N° 29664, which prohibits the use of printed and digital materials referring to "gender theory and/or ideology" in educational institutions. Enrique Riera later said he would volunteer to "burn the books in a public square if they contained gender ideology". The Inter-American Commission on Human Rights expressed its concern about the decision and declared that "these types of measures represent a serious omission of the duty of the State to protect children from all forms of violence and discrimination, in all spheres, and especially in school".

Additionally, there are also cases of the police disproportionately using loitering laws on LGBTIQ+ people and targeting them in public spaces for document verification.

Gender change on official documents is illegal. The Ministry of Public Health and Social Welfare approved Resolution 695 (Resolución 695) establishing that all transgender people may use their social name on offcial documents including medical records, medical history and forms. It also states that officials will be required to provide assistance and obligatory treat transgender patients with the social name with which they identify themselves.

Access to gender-affirming care is limited, unregulated and very few professionals are trained to administer it. Access to general healthcare for transgender people in Paraguay is extremely difficult.

Paraguay does not recognize non-binary identities.
Intersex people must be registered as Male or Female.

Some specific laws and decrees contemplate in their articles the prohibition of discrimination or protection based on sexual orientation or gender identity, such as:

Decree 6973 regulating Law 577/2016, effective 2017, on "Comprehensive protection of women against all forms of violence", in its article 3 on "Protected persons" establishes that the protection of women in situations of violence without any kind of discrimination based on sexual orientation;

Law 6149/2018 on Protection and Facilities for the Naturalization of Stateless Persons, in its article 9 on "Non-discrimination" establishes that: "The authorities will guarantee the free and full exercise of all the rights recognized in this law to the stateless person or applicant for recognition of such a condition that is subject to the jurisdiction of the country, without any discrimination based on sexual orientation and gender identity.";

Law 6534/2020 on the Protection of Personal Credit Data, in its article 3(b) defines as sensitive personal data "Those that refer to the intimate sphere of its owner, or whose improper use may give rise to discrimination or entail a serious risk personal data that may reveal aspects such as data related to health, life, preference or sexual orientation, ."

No protection is afforded specifically for sexual orientation or gender identity

No protection is afforded for neither gender identity or sexual orientation

Current Adoption Laws (Law No. 6486/Law No. 1136) do not explicitly prohibit single people from adopting regardless of their sexual orientation or gender identity. However, Paraguay has declared itself a "Pro-Family and Pro-Life" country and they do not allow and ignore adoptions requested by LGBTQIAP+ people.

Surgery on intersex infants is legal in Paraguay and continues to be practiced.

There are no explicit prohibitions against LGBTQ+ people serving in the Armed Forces of Paraguay. However, there are no inclusive and anti-discrimination measures towards LGBT people in the Armed Forces. Gender change is not possible.

In June 2010, a bill was introduced that would ban homosexuals from serving in the Armed Forces and the police force, however, 42 out of 46 deputies voted against it.

MSM individuals are not singled out and have to follow the same criteria as everyone else.

Paraguay prohibits conversion therapy based on sexual choice and identity mentioned in Article 3 of Law No. 7018 on Mental Health.

The general age of consent in Paraguay is 14 years for heterosexual acts and 16 years for homosexual acts.