Cost Of Living In Paraguay

Paraguay is often overlooked in South America, yet it offers a unique blend of affordability, stability, and ease of residency that appeals to expats seeking a quieter, low-cost lifestyle. With a warm climate, relaxed pace of life, and one of the lowest tax burdens in the region, the country attracts retirees, remote workers, and investors looking to stretch their budget without sacrificing comfort.

Most foreigners gravitate toward Asunción, the capital, which combines modern amenities with a cost structure far below that of other Latin American cities. Outside the capital, daily living becomes even more accessible, with inexpensive food, low transportation costs, and very competitive housing prices.

In this guide, you’ll find a detailed breakdown of the cost of living in Paraguay, with all figures presented in U.S. dollars and compared directly with average prices in the United States. From food and housing to transportation and education, this resource gives you a practical understanding of what it truly costs to live in one of South America’s most affordable destinations.

The Cost Of Food In Paraguay

Dining out in Paraguay is generally very affordable, especially compared with neighbouring countries and the United States. Local restaurants serve generous portions at low prices, and traditional Paraguayan dishes such as chipa, sopa paraguaya, and grilled meats offer excellent value. Even in Asunción, eating out regularly is entirely feasible for expats on a modest budget.

International restaurants and modern cafés are concentrated in the capital and can be more expensive, but still remain far cheaper than similar options in the United States. For most expats, dining out is a comfortable part of weekly life rather than an occasional treat.

Cooking at home is even more economical thanks to Paraguay’s strong agricultural base. Fresh meat, fruit, and vegetables are available at low prices, and local markets provide an excellent variety without the higher markup found in major import-dependent countries. Staples such as rice, flour, and fresh produce are consistently inexpensive.

Imported products, premium wines, and specialty items tend to cost more due to transportation and limited supply. Still, for expats earning in U.S. dollars, the overall grocery bill remains far lower than in the United States, making Paraguay one of the most cost-effective countries in the region for household food expenses.

The Real Cost Of Housing In Paraguay

Housing in Paraguay is one of the most affordable in South America, and this is often the main reason expats consider the country. Rent prices in Asunción are low compared with major Latin American capitals, and they drop even further outside the city centre. For newcomers, it’s easy to find modern apartments or family homes at monthly rates far below what you would pay in the United States.

Most expats choose to rent initially, as the country offers a wide range of furnished and unfurnished options. Neighbourhoods such as Villa Morra, San Lorenzo, and San Blas in Asunción provide good infrastructure, safety, and reasonable rent. Meanwhile, smaller towns and rural areas offer even greater value, allowing expats to live comfortably on modest budgets.

Buying property is also highly accessible to foreigners, with straightforward regulations and significantly lower prices per square metre than in North America. Paraguay is known for its favourable ownership laws and simple purchasing process, which appeals to long-term residents and investors. While imported construction materials can affect final building costs, overall real estate remains one of the most cost-effective in the region.

Travel And Transportation Costs In Paraguay

Getting around Paraguay is straightforward and inexpensive, especially in Asunción, where buses and ride-hailing services operate widely. Public transportation is extremely affordable, making it a practical option for daily commuting. Taxis and apps like Bolt or Uber offer additional convenience at prices far lower than in the United States.

Here’s what you can expect to pay for buses, taxis, and fuel. While transportation costs are generally low, travel times can vary due to traffic in central areas and limited transport options outside major cities. Still, overall mobility remains budget-friendly for most expats.

For those living outside the capital or in rural areas, owning a car may become necessary. Vehicle prices can be higher due to import duties, but fuel and maintenance remain affordable. Roads connecting major cities are in good condition, making long-distance travel accessible and inexpensive by regional standards.

The Cost Of Education In Paraguay

Education in Paraguay varies significantly between public and private institutions. Public schools are free but often lack the infrastructure and academic standards expats expect, which is why most foreign families choose private or international schools.

These institutions, particularly those in Asunción offering bilingual or international curricula, provide higher-quality education but come with tuition fees that can represent a substantial portion of a family’s annual budget. Costs remain lower than in the United States, but still require careful planning for expats relocating with children.

The Cost Of Utilities In Paraguay

Utilities in Paraguay are generally affordable, especially when compared with costs in the United States. Electricity prices can vary depending on usage and the need for air conditioning during the warmer months, but overall, monthly bills tend to remain reasonable. Water, waste collection, and internet services are widely available in urban areas and offer good value for the price.

For expats working remotely or managing online businesses, internet connectivity is reliable in major cities like Asunción and Ciudad del Este, though rural areas may experience slower speeds. Mobile plans are competitively priced and provide wide coverage throughout the country. In most cases, utility expenses will represent a small portion of an expat’s monthly budget.

With this overview, you now have a clear understanding of the cost of living in Paraguay, from food and housing to transportation, education, and utilities, all presented in U.S. dollars and compared with prices in the United States. These insights give you the practical foundation to plan your move, set your budget, and make informed decisions about living or investing in one of South America’s most affordable countries.

Paraguay’s combination of low living costs, straightforward residency options, and a relaxed lifestyle makes it an appealing choice for expats looking for value and long-term stability.