Living in Paraguay means enjoying an incredible mix of cultural richness and affordability in a strategic location in South America. Located between Argentina, Brazil, and Bolivia, this landlocked country continues to attract expats seeking a slower pace of life, low living costs, and accessible residency options.
Whether you’re considering temporary or permanent residence in Paraguay, this article will explore why Paraguay can be more than just a holiday spot for you and your family.
Key Takeaways – Living in Paraguay
Living in Paraguay as an Expat – Quick Overview
| Category | Details |
|---|---|
| Capital City | Asunción |
| Largest City | Asunción |
| Population | 7.07-7.09 million |
| Official Language | Spanish and Paraguayan Guaraní |
| Currency | Paraguayan Guaraní (PYG) |
| Continent | South America |
| Size | 406,752 km² |
| Economy | USD 47.4 billion GDP (2025) |
| Main Industries | Agriculture (soybeans, beef), hydroelectric power, trade, and manufacturing |
| Healthcare | Public and private |
Paraguay is known for its affordability and relaxed pace of life. It is one of the only countries in the region where an indigenous language (Guaraní) is being spoken alongside Spanish, and this shows the country’s deep-rooted heritage. The capital city, Asunción, is a booming metropolis surrounded by trees, parks, and beaches along the popular Paraguay River. This city also caters to diverse lifestyles, with state-of-the-art shopping malls, fine-dining restaurants, museums, and a major financial district.
Expats who want to live in Paraguay should arrive with a basic knowledge of Spanish to navigate their daily lives more easily, as English is not widely spoken, especially in rural areas like Piribebuy and Paraguari.
Benefits of Living in Paraguay as an Expat
- Affordable cost of living: The cost of living in Paraguay, including rent, is 63% lower than in the United States. Expats can enjoy lower prices of rent (75% lower than in the U.S.), food, and groceries.
- Territorial tax system: Paraguay only taxes locally sourced income at a low tax rate of 10% and does not tax foreign-earned income. This means expats who are tax residents in Paraguay can enjoy their foreign income, investments, and remote work earnings tax-free.
- Straightforward residency process: Paraguay offers an easy residency process to attract foreign investors and workers who want to reside in the country. Foreigners interested in moving to Paraguay can explore the Independent Means Visa, or the Paraguay Investor Visa.
- Welcoming culture: Paraguayans are known for being friendly and warm, especially to foreigners. Residents also enjoy a strong sense of freedom, with fewer government restrictions, allowing them to fully integrate easily.
- Warm climate: Paraguayans enjoy a warm, subtropical climate characterized by hot summers and mild winters
- Affordable private healthcare: Expats can enjoy affordable private healthcare in Paraguay with consultations costing USD $20-$80 and comprehensive local insurance costing anywhere from USD $30-$75 monthly.
- Favorable exchange rate: Expats have a greater purchasing power in Paraguay, thanks to the exchange rate between the USD and PYG, where 1 USD = 6,485.46 PYG.
Cost of Living in Paraguay
The cost of living in Paraguay is significantly lower than in the United States and Western Europe, with single residents being able to live on $1,000-2,000 USD per month, excluding rent and depending on their lifestyle and exact location. As the country develops, prices continue to rise. However, expats earning in USD, GBP, or EUR still have strong purchasing power in Paraguay.
Cost of groceries in Paraguay
| Item | Average Price (PYG) | Average Price (USD) |
|---|---|---|
| Milk (1 Liter) | 6,800.88 | 01.05 |
| Fresh White Bread (500g) | 7,471.71 | 1.16 |
| White Rice (1 kg) | 7,344.91 | 1.14 |
| Eggs (12, Large) | 13,290.23 | 02.06 |
| Local Cheese (1 kg) | 48,822.10 | 7.56 |
| Chicken Fillets (1 kg) | 25,380.56 | 3.93 |
| Beef (1 kg) | 52,212.51 | 08.09 |
| Apples (1 kg) | 15,799.63 | 2.45 |
| Bananas (1 kg) | 6,999.03 | 01.08 |
| Oranges (1 kg) | 6,629.53 | 01.03 |
| Tomatoes (1 kg) | 13,113.61 | 02.03 |
| Potatoes (1 kg) | 7,417.18 | 1.15 |
| Onions (1 kg) | 7,237.39 | 1.12 |
| Lettuce (1 head) | 4,499.68 | 0.70 |
| Bottled Water (1.5L) | 4,313.05 | 0.67 |
Transportation costs in Paraguay
| Item | Average Price (PYG) | Average Price (USD) |
|---|---|---|
| One-Way Ticket (Local Transport) | 3,600.00 | 0.56 |
| Monthly Public Transport Pass | 222,949.38 | 34.54 |
| Taxi Start (Standard Tariff) | 8,795.26 | 1.36 |
| Taxi (1 km) | 9,200.00 | 1.43 |
| Taxi 1 Hour Waiting | 48,000.00 | 7.44 |
| Gasoline (1 Liter) | 7,261.40 | 1.13 |
Utility costs in Paraguay
| Item | Average Price (PYG) | Average Price (USD) |
|---|---|---|
| Basic Utilities (85m² Apartment) | 305,504.32 | 47.33 |
| Mobile Phone Plan (10GB+ Data) | 104,036.55 | 16.12 |
| Broadband Internet (60 Mbps+) | 123,104.80 | 19.07 |
Housing costs in Paraguay
| Item | Average Price (PYG) | Average Price (USD) |
|---|---|---|
| 1 Bedroom Apartment (City Center) | 2,851,105.89 | 441.74 |
| 1 Bedroom Apartment (Outside Center) | 1,874,344.20 | 290.40 |
| 3 Bedroom Apartment (City Center) | 4,805,091.49 | 744.48 |
| 3 Bedroom Apartment (Outside Center) | 3,249,619.81 | 503.49 |
| Price per m² (City Center) | 10,417,110.87 | 1,613.99 |
| Price per m² (Outside Center) | 7,730,348.05 | 1,197.71 |
Rent and other items are slightly more expensive in urban areas and other major cities than in other areas.
Can foreigners buy property in Paraguay?
Yes, a foreigner can buy a house in Paraguay, even without residency and with the same rights as local citizens. There are no restrictions on the kind of urban residential or commercial properties that can be bought. The process is also straightforward, and foreigners can purchase property in their personal names or under a company structure. It is recommended to use a local lawyer for due diligence, as the land registry and title verification processes are very different from Western standards.
Healthcare in Paraguay
Paraguayan healthcare is in two tiers: a public, free system that is usually overcrowded and a private, high-quality and paid system. Paraguay’s public healthcare system is also quite understaffed, with just 11.1 doctors per 10,000 citizens. The emergency systems are also not always reliable. This is why many expats opt for private hospitals like Hospital La Costa, San Roque, and Bautista for shorter wait times, English-speaking doctors, and overall higher-quality healthcare. Some notable private health insurance providers in Paraguay are Bupa Global, Signa Global, and Axa Global Healthcare and the insurance costs about $30-$75 monthly.
Education in Paraguay
If you’re moving to Paraguay, you must consider the language and education, especially if you’re immigrating with children. Education in Paraguay is compulsory for 12 years (ages 6-15), split into primary (9 years) and secondary (3 years). Unfortunately, the public education system has been neglected, so expats often send their children to private or international schools, usually located in Asunción. These schools offer subjects in multiple languages. Some of the most popular international schools are The American School of Asunción, which offers IB curriculum and English instruction, and The Lycée Français International d’Asunción for French families.
Best Places to Live in Paraguay for Expats
Some of the best places to live in Paraguay for many expatriates are Asunción, Encarnación, San Bernardino, San Lorenzo, and Hohenau.
Asunción
Asunción is the capital city, offering expats a wide range of modern apartments, high-end shopping, galleries, museums, private educational institutions and thriving business areas. This city is very popular among expats due to its infrastructure, international schools, private hospitals, English-speaking doctors, and the country’s only international airport, Silvio Pettirossi International Airport.
Encarnación
Also known as the “Paraguayan Cartagena, Encarnación is considered the safest city in Paraguay, offering a laidback atmosphere, beautiful waterfronts, and is popular with families. It is located on the Paraná River bordering Argentina, and has a beach-like atmosphere, a well-maintained waterfront, and a growing expat community. It is more affordable than Asunción and popular with retirees.
San Bernardino
San Bernardino is a popular resort town in Paraguay, approximately 40 minutes away from Asunción that welcomes many wealthy expats and tourists. It is a safe town set on Lake Ypacaraí, and appeals to expats who want a quieter lifestyle near nature but still within reach of the capital.
San Lorenzo
If you want a ‘little Asunción’, San Lorenzo is the place for you. It is a more affordable suburb located about 20-30 minutes away from the capital city. This town is popular with families and those looking for lower rents (20%-40% cheaper than prime Asunción) while remaining close to the capital’s amenities.
Hohenau
Hohenau is located in the Itapúa department, about 8km away from Trinidad. It is a popular location for European expats, offering a quiet, agricultural lifestyle with a significant German influence. Hohenau also has extensive cultivation fields and nearby streams, such as the Capi’ivary, Poromocó, and Mansisovy, which are great for foreigners who may want to take up farming.
Is Paraguay safe for foreigners?
Paraguay is one of the safer countries in South America. On Numbeo’s Crime Index, Paraguay scores 57.71, lower than Brazil (63.4), Argentina (63.0), Ecuador (62.0), Colombia (61.2), and Chile (60.5). Violent crime against foreigners is rare. Most crimes affecting expats are opportunistic theft, not targeted violence, and thousands of expats live safely in Asunción and other cities. Some of the most frequent risks are petty and occur in busy areas like Asunción and Ciudad del Este. Pickpocketing, purse snatching, and cell phone theft are common. Armed robberies can happen at night in certain districts, though this is rare in expat communities. Foreigners must also avoid areas like Pedro Juan Caballero on the Brazilian border, which is considered the most dangerous city in Paraguay.
Do foreigners pay tax in Paraguay?
| Tax Type | Rate |
|---|---|
| Personal Income Tax | 10% (on Paraguayan-source income) |
| Corporate Tax (IRE) | 10% |
| Value Added Tax (VAT) | 10% (standard rate; 5% reduced rate applies to some goods/services) |
| Capital Gains Tax | 8%-10% (depending on income type) |
| Dividend Tax | 8% (residents) / 15% (non-residents) |
| Inheritance Tax | 0% (no inheritance tax) |
Yes, foreigners who are tax residents in Paraguay pay tax, but only on locally sourced income, not on their foreign-earned income. An individual becomes a tax resident in Paraguay by acquiring legal residence and obtaining the Paraguayan identity card (“cédula”) and tax registration (“RUC”). There is no minimum stay requirement to obtain Paraguayan tax residency. Tax residents are subject to personal income tax on Paraguay-sourced income at 10% (or 8% for lower income brackets). Inheritance or net worth is not taxed.
