How Paraguay’s Cost of Living Compares to Other Countries

Paraguay has become an appealing destination for tourists and families looking to make a new start to South America. From a very simple residency process to a cost of living that's among the cheapest on the continent expat paraguay, this country that is landlocked provides a warm welcome to those who live abroad. If you're a digital nomad or retiree, or wanting to slow down the pace of life, a move to Paraguay may be the ideal change you've been searching for.

In this complete guide, we'll take you through all you should learn about Paraguay residence in addition to the process of moving and the lifestyle of living in Paraguay is really like.

Why Should You Choose Paraguay Residency?

A Simplified Residency Procedure

Paraguay is known as having one of the most accessible living systems throughout Latin America. In contrast to countries with burdensome regulations, Paraguay offers a streamlined route to permanent and temporary residence. The process was traditionally based on making a refundable deposit to a Paraguayan banking account but recent reforms have removed this requirement.

Instead, applicants need:

A valid passport

A clear criminal record

Civil documents, such as birth certificates and marriage certificates legally valid

An address local to Paraguay

After your application is sent to the immigration authorities you can typically expect to receive your approval within a couple of months.

A low cost of living

Living in Paraguay is easily accessible for those with a budget. As the capital is Asuncion where monthly expenses for a single person often are between $800 and $1,200 dependent on your style of living. Housing is particularly affordable in Asuncion. You can rent a modern, one-bedroom home in a prime location for around $400-$500 per month.

Food, utilities, and services are priced below what you'd pay to pay for these items in North America or Western Europe. For expats, this means you can enjoy the highest standard of living without the burden of high costs.

A Favorable Tax System

Paraguay's tax laws are particularly appealing for entrepreneurs, remote workers and retirees. The country has a territorial tax system which means any income earned outside of Paraguay is not in the scope of Paraguayan taxes. This makes it a perfect option for people who run your own online business, have investments abroad, or pensions from that country of your birth.

A Path to Citizenship

Once you've achieved permanent residency after which you're eligible for Paraguayan citizenship in as short as three years. Citizenship provides you with the benefit of a Paraguayan passport, a broader range of options within the Mercosur trade bloc, and is a great second citizenship. As opposed to some countries it is generally transparent, and its government supports permanent settlement.

Steps to Move to Paraguay

  1. Get Your Documents Prepared

Begin by collecting:

A valid passport

A birth certificate that is legalized through an Apostille

A certificate of marriage or divorce if applicable

A recent certificate of police clearance from your country of residence

The documents must get translated in Spanish via an official translator.

  1. Secure a Local Address

You will need to provide the Paraguayan address as part of your application. Many expats prefer renting an apartment for the first period of their stay, while others opt to live in short-term accommodations or furnished rentals until they settle down.

  1. Submit Your Residency Application

File your application with the Paraguayan National Immigration Department. In addition, you'll undergo a medical examination and fingerprinted. If you're using a local immigration lawyer or facilitator, they'll assist you with each step and provide you with a tracker of your application progress.

  1. Find Your Residence Card

When you're approved, the card will be your Cedula (residency card) which acts as your ID official in Paraguay. The card gives individuals the opportunity to reside or work and also opening bank accounts across the country.

Living in Paraguay Everyday Life in Paraguay

Housing

Paraguay has a wide range of housing options, from modern residences in Asuncion to large homes in suburban and rural regions. Many expats favor neighborhoods like Villa Morra and Carmelitas, where you can enjoy a blend of security, amenities, and the ability to walk.

If you prefer a quieter environment, consider smaller cities like Encarnacion or Ciudad del Este, where real estate prices are even lower.

Healthcare

Healthcare in Paraguay can be described as a combination of private and public services. Although you can access the system provided by public authorities accessible to residents, most expats choose private clinics and hospitals due to the high quality of medical care and faster wait time. Health insurance plans can be affordable and widely available, often priced at a fraction of what you'd spend elsewhere.

Transportation

There are public transport options, including buses and taxis, but many expats consider owning their own car more convenient, particularly outside the capital. In Paraguay is usually easy, however, road conditions may vary.

Language and Integration

Spanish is the main language however, while English is spoken in a few workplaces, mastering Spanish can make your experience much more enriching. Paraguayans are friendly and welcoming, and even limited Spanish capabilities go a long way in establishing connections.

the Expat Community from Paraguay

The expat community in Paraguay is growing due to the country's stability in its economy and easy pace of life. From forums on the internet to clubs for socializing in Asuncion you'll find plenty of opportunities to connect with fellow newcomers.

Popular activities among expats include:

A look at Paraguay's national parks

Historical sites to visit, like the Jesuit Missions

Sampling traditional Paraguayan dishes such as sopa paraguaya and asado

Key Advantages of Living in Paraguay

Low Cost of Living: Living a secure living without breaking the bank.

simplified residency: Some countries are able to provide a more straightforward path to residency.

Territorial Tax System Make the most of your global income.

A Path for Citizenship Straight-forward route for a second passport.

The Economy is Growing: Opportunities in agriculture, remote work and services.

Are you considering moving to Paraguay The Right Choice for You?

If you're looking for financial freedom, sunny weather, and a relaxed lifestyle, Paraguay can be a advantageous choice. It offers a rare blend of low taxes, easy housing, and modern conveniences and all within an active and vibrant culturally rich society.

Whether you plan to retire, establish an empire, or embark on a new chapter in your life Paraguay is worth a serious look. If you're prepared and a willingness to learn, it is possible to be successful in South America's best-kept secret.

Ready to Take your Next Step?

Start by collecting your documents while researching the local area and connecting with other expats. Soon, you'll be on your way from living abroad in Paraguay and enjoying all the advantages that come with creating this stunning country as your new home.