Living in Paraguay: the ultimate expat guide

Paraguay offers multiple residency pathways designed for different expat profiles. The process is relatively straightforward compared to many South American countries, and Paraguay joined the Hague Convention in 2014, meaning apostilled documents are accepted without consular legalization.

Visa-Free Tourist Entry

Citizens of numerous countries can enter Paraguay visa-free for stays up to 90 days. This includes nationals from the European Union, United States, United Kingdom, Canada (since 2024), Mexico, Brazil, Argentina, and most Latin American countries. Only a valid passport is required upon arrival. However, nationals from India, Australia, Russia, Taiwan, and certain Asian or African countries must obtain a visa before departure, with processing taking 30-45 days.

Temporary Residency for Testing the Waters

Temporary residency lasts 1 year and can be renewed up to a maximum of 6 years total. It requires a minimal physical presence of just 1 day per year to maintain status, making it flexible for those wanting to test the country before fully committing.

Processing time runs approximately 90 days after arrival in Paraguay for well-prepared applications. Once residency is granted, the cédula (Paraguayan national ID card) takes an additional 45-60 days to issue. This card is essential for all local administrative procedures.

Required documents include a valid passport, police clearance from the past 3 years (apostilled), birth certificate (apostilled), health certificate, plus Spanish translations by a certified translator (approximately USD 100-200 per person). You'll also need proof of sufficient income to support yourself.

Permanent Residency: Four Different Routes

Paraguay provides four distinct permanent residency options, each suited to different expat profiles.

Option 1: Refundable Bank Deposit

This option applies to nationals from visa-exempt countries. It requires a deposit of USD 4,500 (approximately PYG 24,554,600, equivalent to 35 monthly minimum wages) in a Paraguayan bank or the Central Bank. The entire amount is fully refundable after obtaining permanent residency. Depositing in a commercial bank allows the funds to earn interest, unlike a Central Bank deposit.

Option 2: SUACE Investment Program (Most Popular)

The SUACE program is by far the most utilized by expat entrepreneurs. It requires a minimum USD 70,000 investment, but the key flexibility is that this amount can be spread over 10 years—you don't need to invest everything upfront. Eligible activities include business creation, commercial real estate, agriculture, or services.

Reformed by Law 6984/22 in October 2022, the program delivers permanent residency in 45-90 days, including cédula. Budget approximately USD 14,000 in additional fees for company formation, registration, and residency processing. You must demonstrate job creation in your business plan.

Option 3: Retirement/Passive Income

This route suits retirees or those with regular passive income. You need to demonstrate verifiable monthly income of USD 1,022-1,300. Tax benefits include customs exemptions on imported personal effects (subject to specific quantities and conditions).

Option 4: After 2 Years Temporary Residency

If you've maintained temporary residency for 2 years, you can automatically convert to permanent residency without additional requirements.

Permanent Residency Characteristics

Once obtained, Paraguayan permanent residency offers great stability. The card renews every 10 years, and the presence requirement remains minimal at 1 day per year. However, absence exceeding 3 years without justification may result in status loss.

Paraguayan Citizenship Access

After 3 years of permanent residency, you can apply for Paraguayan citizenship. Requirements include physical presence of 183+ days per year during those 3 years, proficiency in Spanish or Guaraní, proof of investment (for SUACE route), and a clean criminal record.

Paraguay has a dual citizenship treaty only with Spain, but in practice tolerates dual citizenship with other countries. The Paraguayan passport provides visa-free access to 147 countries, including the EU, South Korea, UAE, and Singapore, ranking 70th globally out of 197 countries on the Global Passport Index.

Paraguay's labor market is experiencing notable growth. The unemployment rate hit 5.6% in Q1 2025, its lowest level since 2017. With 2.91 million people employed, the country shows positive economic momentum, though the informal sector still represents approximately 62% of the active workforce.

Labor Market Overview

Average salary in Paraguay sits at USD 458 after taxes, while the legal minimum wage is set at USD 370 per month (approximately PYG 2,700,000). The active workforce represents 48% of the total population, or 3.47 million people. The population's average age of just 26 years ensures a young and dynamic workforce.

For expats, it's important to note that local salary levels run significantly below Western standards. However, the low cost of living more than compensates for this gap, allowing comfortable purchasing power even on average income.

Key Economic Sectors

Agro-industry dominates Paraguay's economy, representing 70% of national GDP. The country is a major exporter of soybeans, beef, and cereals. This sector offers opportunities for agronomists, logistics specialists, and entrepreneurs in food processing.

Hydroelectric energy forms the second economic pillar. Paraguay ranks as the world's largest electricity exporter thanks to the Itaipu Dam, which exports 70% of its production to Brazil and Argentina. This sector seeks engineers and specialized technicians.

The Maquila regime attracts numerous Brazilian and Argentine companies with a tax rate of just 1% on export-oriented production. This advantageous tax system primarily applies to textiles, food processing, and construction materials.

The services sector now represents 50% of GDP and continues expanding. Cross-border commerce with Argentina and Brazil generates substantial activity. Finally, the new Law 7546/2025 was just adopted to stimulate the technology sector with attractive tax incentives, opening opportunities in IT and digital services.

Starting Your Own Business

Paraguay greatly facilitates business creation for expats. The most common legal structure is the Sociedad Anónima (SA), equivalent to a corporation, requiring a minimum of 2 shareholders and 1 director. This structure allows foreigners to own 100% of the capital.

Formation timelines are quick: expect 2-4 weeks to register a company, with a minimum initial investment of USD 5,000 (approximately PYG 36.5 million) required. Formation costs run around USD 2,000-3,000, including registration fees, notary fees, and legal assistance.

Real estate is accessible to foreigners without particular restrictions. Rental property investment is a popular option, with gross rental yields reaching 6-8% annually in prime Asunción areas. Property prices remain highly affordable compared to Western standards.

Here's a sector-by-sector employment overview:

Sources: Latam FDI, Living Cost, World Bank

Opportunities abound for entrepreneurs ready to adapt to the local market. Low competition in certain sectors and tax incentives create a favorable environment for new ventures.

Paraguay operates a territorial tax system that ranks among the most attractive globally for expats. Unlike most Western countries, Paraguay only taxes income generated within its territory and levies zero tax on foreign-sourced income, inheritances, gifts, or wealth.

Territorial Taxation Principle

The fundamental rule is straightforward: only Paraguay-sourced income is taxable. If you receive rental income from properties abroad, dividends from foreign companies, or pension payments from other countries, these incomes are not taxed in Paraguay. This specificity makes it a preferred destination for retirees and international investors.

To qualify as a tax resident, you must reside in Paraguay at least 120 days per year. Below this threshold, you're not considered a Paraguayan tax resident.

Personal Income Tax

The Personal Income Tax applies only to locally-sourced income under a progressive schedule:

1. 8% on salary income and local professional fees
2. 10% on income from commercial, agricultural, and service activities

A basic allowance of 36 annual minimum wages (approximately USD 13,320 or PYG 97.2 million in 2025) applies before taxation. Practically, if your local annual income remains below this amount, you pay zero income tax.

Corporate Taxation

Paraguayan companies face the Impuesto a la Renta Empresarial (IRE) at a standard 10% rate on net profits. This rate places Paraguay among Latin America's most competitive jurisdictions. For export companies under the Maquila regime, the rate drops to just 1%.

Dividends distributed to shareholders face a 5% withholding tax, but only if profits derive from local income. If you're a shareholder in a Paraguayan company generating profits from exports or foreign clients, these dividends may escape all taxation.

VAT and Consumption Taxes

Paraguay applies a Value Added Tax (IVA) of 10% on most goods and services, remaining moderate compared to 20%+ rates common in Europe. Certain basic necessities benefit from a reduced 5% rate, particularly staple foods and medicines.

Property and Real Estate Taxes

Property owners pay an annual property tax called Impuesto Inmobiliario, with rates varying between 0.3% and 1% of cadastral value depending on location and use (residential or commercial). This tax is significantly lighter than property taxes in most Western countries.

Real estate transactions face a 0.5% tax for the buyer and 0.5% for the seller, totaling 1% of the sale price. Paraguay has no capital gains tax on real estate, greatly favoring property investment.

Social Security Contributions

Employees and employers must contribute to the Instituto de Previsión Social (IPS), equivalent to social security. Contributions represent approximately 9% of gross salary for employees and 16.5% for employers, totaling 25.5%. These rates run significantly below social charges in many Western countries which often exceed 40% of gross salary.

Limited International Tax Treaties

Paraguay has signed very few double taxation treaties. A treaty exists with Taiwan, but the country has no fiscal agreement with the US, UK, Canada, Australia, or most European nations. You must carefully study your tax situation in your home country before expatriating, particularly regarding exit tax rules and reporting obligations to your original tax authority.

In some cases, you may need to continue reporting worldwide income to your home country for several years after departure, especially if you maintain strong economic ties there.

Paraguay's healthcare system features a stark divide between an overburdened free public sector and a high-quality private sector offering care at remarkably affordable rates for expats. Most expats opt for private healthcare, which delivers excellent value for money.

Public Healthcare System

The public system operates through the Instituto de Previsión Social (IPS), covering contributing employees in the formal sector, and the Ministerio de Salud Pública y Bienestar Social (MSPBS), serving those without coverage. Care is free or nearly free, but infrastructure suffers from chronic underfunding.

Wait times are often extensive in public hospitals, and care quality varies dramatically between facilities. Paraguayan doctors are generally well-trained, but lack of material resources limits treatment options. For expats, the public system rarely provides satisfactory quality care.

Private Healthcare: Quality and Accessibility

Paraguay's private sector offers excellent care quality in major urban centers, especially Asunción. Private clinics and hospitals are modern, well-equipped, and medical staff often trained abroad (Argentina, Brazil, USA, Spain).

Rates are remarkably accessible compared to Western countries. A general practitioner consultation costs USD 20-40, a specialist consultation USD 40-80. Minor surgery can cost USD 500-1,500—5 to 10 times less than in Europe or North America.

Top private facilities in Asunción include Hospital Privado Migone, Sanatorio San Roque, Centro Médico Bautista, and Hospital Italiano. These institutions actually attract regional medical tourism from Argentina and Brazil.

Local and International Health Insurance

Several Paraguayan companies offer affordable private health insurance. Budget USD 50-150 per month for comprehensive coverage including hospitalization, consultations, tests, and medications. These policies cost significantly less than Western insurance.

For expats wanting international coverage including repatriation and care outside Paraguay, international insurers like Cigna Global, Allianz Care, April International, or MSH International offer specific plans. Rates start around USD 150-300 per month depending on age, health status, and coverage extent.

Subscribing to insurance upon arrival is highly recommended, as direct payment for care (even inexpensive) can accumulate quickly with hospitalization or prolonged treatment.

Pharmacies and Medications

Pharmacies are plentiful in Paraguay, particularly in urban areas. Many medications are available without prescription, including some antibiotics. Medication prices generally run 50-70% cheaper than in Europe, representing a significant advantage for those requiring regular treatments.

Major pharmacy chains like Catedral, Redfarma, and San Roque are reliable and offer good product selection. European or American imported medications are available but at higher prices than local generics.

Vaccinations and Health Precautions

No vaccinations are mandatory for entering Paraguay, but staying current on basic vaccines (tetanus, hepatitis A and B) is recommended. The yellow fever vaccine is advised if planning to visit rural or forested areas, particularly in departments near Brazil and Argentina borders.

Paraguay presents no major tropical disease risk in urban areas. Dengue can occur during rainy season (November-March), but severe cases remain rare. Tap water is generally not potable: opt for bottled water or a filtration system.

Paraguay's education system offers several options for expat families, ranging from free public schools to private international establishments. Most expats choose private or international schools guaranteeing quality education aligned with international standards.

Local Education System

Public education in Paraguay is free and compulsory from ages 5 to 15. The system comprises three cycles: Educación Inicial (preschool), Educación Escolar Básica (primary and middle school, 9 years), and Educación Media (high school, 3 years). Instruction occurs in Spanish and Guaraní, depending on regions.

Public education quality varies significantly across establishments and geographic areas. Urban schools are generally better equipped than rural ones but remain below international standards. Expat families rarely choose the public system.

Local Private Schools

Paraguayan private schools offer better quality education than the public sector, with smaller class sizes and modern infrastructure. Tuition fees range between USD 200-800 per month depending on establishments and grade levels.

Some private schools offer bilingual Spanish-English instruction, facilitating expat children's adaptation while allowing them to learn Spanish. This option provides a good compromise between local integration and maintaining high academic standards.

International Schools in Asunción

The capital concentrates most international establishments following American, British, or International Baccalaureate (IB) programs. These schools serve children of diplomats and expats worldwide.

American School of Asunción (ASA) is the country's most reputable international establishment. Founded in 1953, it offers an American program from preschool through high school, with a diploma enabling admission to American and international universities. Annual fees range between USD 8,000-15,000 depending on grade level. The school features excellent sports and arts facilities.

St. Anne's School follows the British curriculum and offers IGCSE and A-Level exams. Tuition runs around USD 6,000-12,000 annually. The establishment emphasizes personalized instruction with reduced class sizes.

International School of Asunción (ISA) follows the International Baccalaureate (IB) program in English. Rates are comparable to American School, between USD 8,000-14,000 annually. This school attracts a cosmopolitan student community from over 40 nationalities.

Colegio Goethe offers instruction in German and Spanish, following the German educational program. It's the preferred option for the German-speaking community established in Paraguay for several generations. Fees sit between USD 5,000-10,000 annually.

Schools in Other Cities

Outside Asunción, international options are far more limited. In Ciudad del Este, several bilingual Portuguese-Spanish private schools exist due to proximity with Brazil. In Encarnación, offerings are essentially limited to good local private schools without established international programs.

Families living in secondary cities sometimes opt for distance learning via online platforms (homeschooling programs, etc.), supplemented by local Spanish tutoring.

Higher Education

Paraguay has several public and private universities. Universidad Nacional de Asunción (UNA) is the country's oldest and most prestigious public institution. Private universities like Universidad Católica and Universidad Americana also offer quality programs, particularly in business, engineering, and medicine.

Public university fees are very low (a few hundred dollars annually), while private universities charge between USD 2,000-6,000 annually, remaining highly accessible compared to Western fees. Many Paraguayan students pursue studies abroad, particularly in Argentina, Brazil, Spain, or the United States.

Paraguay's real estate market remains highly affordable for expats, with prices per square meter representing a fraction of Western rates. Whether renting or buying, choices are plentiful and formalities relatively straightforward.

Available Housing Types

In Asunción and major cities, housing supply consists primarily of apartments and single-family homes. Modern apartments in secure residential towers are highly sought by expats and upper-middle-class locals. These residences often feature pools, gyms, and 24/7 security.

Houses with gardens are also common, particularly in peripheral residential neighborhoods. Countries (gated residential communities) are developing around major cities, offering villas with green spaces, private security, and sometimes golf courses or clubhouses.

In rural areas, acquiring large agricultural land plots is possible at extremely competitive prices. These properties attract expats interested in farming or ranching.

Monthly Rental Rates by Housing Type

In Asunción, rents vary significantly by neighborhood and property standard. Here are indicative ranges for the capital:

1. Downtown studio: USD 250-400
2. Downtown 2-bedroom apartment: USD 400-700
3. Residential area 3-bedroom apartment: USD 500-900
4. 3-bedroom house with garden: USD 600-1,200
5. Country villa: USD 1,000-2,500

These rates run far below those in Western capitals. A similar apartment in London, Sydney, or Toronto would easily cost 3 to 4 times more.

Property Purchase Prices

Real estate purchase in Paraguay is open to foreigners without restrictions. Square meter prices in Asunción range between USD 800-1,800/m² in sought-after neighborhoods like Villa Morra, Carmelitas, or Las Mercedes. In more popular neighborhoods or periphery, prices drop to USD 400-800/m².

An 80 m² apartment in good condition in a decent residential neighborhood therefore costs between USD 50,000-100,000. A 150 m² house with garden runs USD 80,000-180,000 depending on location.

In secondary cities like Encarnación or Ciudad del Este, prices are even lower, with quality properties accessible from USD 30,000-60,000 for a family home.

Recommended Neighborhoods for Expats in Asunción

Villa Morra is the upscale neighborhood par excellence, featuring shopping centers, international restaurants, and modern residential buildings. It's the preferred choice for diplomats and expat executives, but also the most expensive.

Las Mercedes and Carmelitas offer calm, green settings with beautiful residential properties. These areas appeal to families for their tranquility and proximity to international schools.

San Vicente and Manorá are developing neighborhoods offering good compromise between modernity and accessible prices. Numerous new buildings are under construction, attracting young professionals and families.

Lambaré and Fernando de la Mora, on the immediate periphery, attract expats seeking spacious housing at lower prices while remaining less than 20 minutes from downtown.

Purchase Process and Formalities

Real estate purchase occurs by notarized deed and must be registered at the Registro Público. Hiring a local attorney is strongly recommended to verify the property is free of encumbrances and the seller is the legitimate owner.

Purchase fees represent approximately 3-5% of acquisition price: notary fees, registration, attorney fees, and transfer tax. Paraguay has no capital gains tax on real estate, favoring rental investment.

Local real estate financing exists but remains difficult for foreigners without Paraguayan banking history. Interest rates are high (around 10-15% annually), so most expats buy cash or finance their purchase through their home country.

Utilities and Monthly Charges

Monthly charges for an apartment in a residential building typically include common area maintenance, security, and sometimes water. Budget between USD 50-150 monthly depending on building standard.

Electricity costs approximately USD 40-80 monthly for a medium-sized apartment with air conditioning. Water is very cheap, around USD 10-20 monthly. Internet and phone: USD 30-50 for decent fiber connection.

An international move to Paraguay requires careful preparation to avoid unpleasant surprises. Between customs formalities, shipping your personal belongings, and on-site administrative procedures, here's what to anticipate for a successful installation.

Pre-Departure Checklist

1. Gather official documents: Obtain apostilled birth certificates, police clearances, and diplomas before departure. These documents must be translated into Spanish by a certified translator. Plan for multiple certified copies of each document.
2. Settle your tax situation: Inform your tax authority of your residence change. Request a tax residency certificate if necessary. Verify your tax obligations for the departure year.
3. Arrange banking transfers: Open an account with an international bank operating in Paraguay (like HSBC or Citibank) to facilitate initial transfers. Plan startup capital in cash (USD) for the first weeks.
4. Subscribe to international health insurance: Never depart without medical coverage. Subscribe before leaving to avoid waiting periods and guarantee immediate coverage in emergencies.
5. Cancel or suspend your contracts: Terminate subscriptions (electricity, internet, insurance, etc.) or request suspension if keeping a base. Transfer phone lines or opt for international virtual numbers.
6. Arrange children's schooling: Enroll children in their future school before arrival. Places in Asunción's international schools can be limited, particularly mid-school year. Request enrollment files 3-6 months in advance.
7. Plan temporary accommodation: Book an Airbnb or hotel for the first weeks. This gives you time to visit several properties and choose the right neighborhood without pressure. Plan at least 2-4 weeks temporary housing.
8. Plan international shipping of belongings: Request multiple quotes from specialized international moving companies. Sea transport takes 6-10 weeks from Europe or North America; air transport is faster but much more expensive.

International Transport Options

Three solutions exist for shipping your personal effects:

Sea container shipping: The most economical option for large volumes. A 20-foot container costs between USD 2,500-4,500 from Europe, and USD 3,000-5,000 from North America. Timeline is 6-10 weeks. A 40-foot container costs about 50% more but doubles transportable volume.

Sea groupage: If you don't have enough belongings to fill an entire container, groupage allows sharing space with other shippers. Budget USD 100-200 per cubic meter. Timelines are similar to full container, but with more handling stages.

Air transport: Reserved for urgent or small items. Cost varies between USD 5-15 per kilogram, making this option prohibitive for complete moves. Timeline: 7-15 days.

Paraguayan Customs Formalities

Paraguay authorizes duty-free importation of personal effects for new residents. You must provide a detailed inventory in Spanish of all transported goods, with value indications. Required documents include your visa or residency, passport, and proof of address in Paraguay.

Used vehicles can be imported duty-free if you have permanent resident retiree status. In other cases, customs duties apply (variable by age and vehicle type). New vehicle importation faces a tax of approximately 30-40% of value.

First Steps Upon Arrival

Once on-site, prioritize these actions:

1. Find permanent housing: Take time to visit several neighborhoods before signing a lease. Rental contracts are generally minimum one year with 2 months deposit.
2. Open a local bank account: You'll need your passport and proof of address. Some banks require the cédula (resident card), others accept tourists. Favor major banks like Banco Itaú, BBVA Paraguay, or Banco Continental.
3. Get a local phone line: Main operators are Tigo, Claro, and Personal. A prepaid SIM card costs a few dollars. For a monthly plan with data, budget USD 15-30.
4. Hire a gestoria or attorney: These professionals assist with all administrative procedures (residency, cédula, driver's license, etc.). Their fees vary between USD 1,000-3,000 depending on case complexity.
5. Register your vehicle: If you imported a car, registration occurs at the Registro de Automotores. You must pass technical inspection and pay registration taxes.

Daily Adaptation

The first weeks can be disorienting, particularly due to language barriers if you don't speak Spanish. Enroll quickly in Spanish courses: many institutes in Asunción offer intensive adult programs (USD 150-300 monthly for 20 hours of classes).

Joining expat groups on social networks facilitates integration and provides practical advice from people who've experienced the same steps. The expat.com forum dedicated to Paraguay is also a valuable resource for asking questions and exchanging with the community.

Paraguay offers cultural and natural richness often unknown to travelers. Between colonial heritage, preserved natural reserves, and vibrant local traditions, the country provides numerous activities to occupy your free time and discover your new adopted country.

Cultural and Historical Heritage

The Jesuit missions constitute Paraguay's most remarkable historical heritage. The ruins of Trinidad and Jesús de Tavarangue, UNESCO World Heritage sites, testify to the era when Jesuits established indigenous reductions in the 17th century. These impressive sites are easily visited from Encarnación.

In Asunción, the Panteón de los Héroes honors soldiers who fell during the War of the Triple Alliance (1864-1870). The Palacio de López, presidential seat, displays elegant neoclassical architecture on the Paraguay River banks. The Cabildo (former colonial town hall) and Casa de la Independencia trace the country's independence history.

The Museo del Barro presents an exceptional collection of Guaraní indigenous art, popular crafts, and contemporary Paraguayan art. For military history enthusiasts, the Museo de las Memorias documents the Stroessner dictatorship (1954-1989).

Nature and Protected Areas

The Paraguayan Chaco, a vast semi-arid region covering 60% of national territory, offers wild landscapes and remarkable wildlife. Parque Nacional Defensores del Chaco harbors jaguars, pumas, giant armadillos, and over 500 bird species. This extreme region remains difficult to access and requires serious logistical organization.

The Paraguayan Pantanal, located in the northeast, forms one of the world's largest wetlands. Birding safaris are exceptional, with observations of caimans, capybaras, macaws, and toucans. The best period runs May to September (dry season).

Cerro Corá, in the northeast, combines historical interest (site of Marshal López's death in 1870) and natural riches with rock formations, caves, and forests. Lago Ypacaraí, 30 km from Asunción, is a popular destination for water activities and lakeside walks.

Sports and Outdoor Activities

Sport fishing enthusiasts will find their happiness in Paraguayan rivers, notably the Río Paraná and Río Paraguay, renowned for dorados, surubis, and pacus. Specialized lodges organize all-inclusive fishing trips.

Golf is developing around Asunción, with several quality courses like Yacht y Golf Club Paraguayo and Asunción Golf Club. Green fees remain very affordable (USD 30-60).

Equestrian sports are rooted in Paraguayan culture. Several estancias offer horseback riding in the Chaco or eastern region. Rodeo and dressage demonstrations are part of rural festivities.

Nightlife and Gastronomy

Asunción concentrates most of Paraguay's nightlife. The Villa Morra neighborhood groups trendy bars, international restaurants, and nightclubs. Terrazas (terrace bars) are very popular on weekends, particularly along Avenida Costanera by the river.

Paraguayan cuisine mixes Guaraní and Spanish influences. Try sopa paraguaya (savory corn and cheese cake, despite its name), chipa (cheese bread), mbejú (cassava pancake), and asado (barbecue). Beef is excellent and inexpensive. A meal in a good restaurant costs between USD 15-30 per person.

Excursions to Must-See Sites

The Itaipu Dam, on the Brazil border near Ciudad del Este, is the world's second-largest hydroelectric dam. Guided tours reveal this technological feat and its impressive statistics. Entry is free.

Saltos del Monday, 10 km from Ciudad del Este, forms a 45-meter waterfall in a lush tropical setting. Less known than neighboring Iguazú Falls, they offer a striking natural spectacle.

The Encarnación region and its beaches on the Paraná River attract Paraguayan vacationers during austral summer (December-March). Encarnación's recently renovated Costanera offers a long waterfront promenade with restaurants and water activities.

Festivals and Cultural Events

The Encarnación Carnival is the country's largest and rivals those of neighboring Brazil. For three weekends in February, samba parades ignite the city's sambadrome. Entry costs between USD 10-40 depending on seating.

The Festival del Takuare'ê celebrates Paraguayan folk music with concerts and traditional dance demonstrations. San Juan Day (June 23-24) features bonfires and traditional games throughout the country. Independence Day (May 14-15) is marked by military parades and patriotic festivities.

Paraguay ranks among South America's most affordable countries. With a monthly budget equivalent to a mid-sized Western city, you can live comfortably in Asunción and enjoy a superior standard of living. The country is 60.7% cheaper than Germany and 64.6% cheaper than the United States on average, making it an ideal destination for retirees and entrepreneurs.

Monthly Budget for a Single Person

Here's a detailed overview of typical monthly expenses for a single person living in Asunción, based on Numbeo data from August 2025. These amounts reflect a comfortable lifestyle without being luxurious.

Source: Numbeo Asunción, data from August 2025

With a budget of USD 1,250-1,500 per month, a single person can live comfortably in Asunción. This amount allows decent neighborhood housing, healthy eating, regular outings, and maintaining a pleasant standard of living.

Monthly Budget for a Family of 4

For a family with two children enrolled in an international school, the budget increases significantly due to tuition fees and larger housing needs.

Source: Numbeo Asunción, data from August 2025

A family of 4 with children in international schools should budget approximately USD 4,500-5,000 monthly. If children attend local private schools rather than international ones, this budget can drop to USD 2,800-3,200 per month.

Common Goods and Services Prices

For a more precise idea of daily prices:

1. Local restaurant meal: USD 6-10
2. International restaurant meal: USD 15-30
3. Local beer (0.5L) at restaurant: USD 2-3
4. Espresso coffee: USD 1.50-2.50
5. Liter of milk: USD 0.90
6. Fresh bread (500g): USD 1.20
7. 12 eggs: USD 1.80
8. Chicken (1kg): USD 4
9. Beef (1kg): USD 7-9
10. Gasoline (liter): USD 0.95
11. Taxi (starting fare): USD 1.50
12. Fitness membership: USD 30-50/month
13. Cinema ticket: USD 5-7
14. Men's haircut: USD 8-12
15. Levi's jeans: USD 50-70

Comparison with Other Destinations

To put these figures in perspective, Asunción's cost of living is approximately 40% lower than Buenos Aires, 50% cheaper than Santiago, and 65% cheaper than major Western cities. A Western retiree with a pension of USD 1,500-2,000 monthly can live very comfortably in Paraguay, whereas this same amount would only allow modest living standards in most English-speaking countries.

Secondary cities like Encarnación or Villarrica show costs 20-30% lower than Asunción while maintaining pleasant living standards and decent basic services.