The domestic legal framework is set forth by the Refugee Law 1938 (2002) which contains important provisions related to refugee status determination procedures and durable solutions. It includes the traditional refugee definition set forth in the 1951 Convention and the broader regional definition as contained in the 1984 Cartagena Declaration. The law guarantees a set of relevant principles, such as non-refoulement, confidentiality, family unity, and non-discrimination. The procedures and eligibility criteria stipulated in the law are generally consistent with international standards. The National Commission for Stateless and Refugees (CONARE) was also established under the Refugee Law and is designated as the national eligibility body.

Paraguay has made notable progress in addressing statelessness, becoming in 2018 the first countries in South America to establish a special legal framework for the protection of stateless people and flexible arrangements for their naturalization. With the enactment of this provision, Paraguay has developed a regulatory and institutional framework in accordance with international standards and has incorporated innovative features specific to its national context. The adoption of this law was not only in compliance with the 1954 Convention, but also with the 1961 Convention on the Reduction of Statelessness, as it intends to provide a practical solution the situation of children of Paraguayans parents born abroad who, according to the legal provisions of their country of residence in combination with the Constitutional provisions of Paraguay on acquisition of nationality, could be at risk of statelessness.

The legal framework governing refugees and stateless persons in Paraguay aligns with international standards, and the country has demonstrated a commitment to upholding the rights of these populations.