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Is Asunción One Of The Best Cities In South America?

Updated: October 14, 2025

Expat Destinations

Paraguay is an extraordinary country that has captured my attention and admiration over the years. Beyond its natural beauty and welcoming people, what makes Paraguay truly stand out is the freedom and opportunity that exist there. Nestled in the very heart of South America, it has long been overshadowed by its larger and more famous neighbours — Brazil, Argentina, and Chile. Yet for those who take the time to look closer, Paraguay reveals itself as one of the most dynamic and underrated nations in the region.

At the heart of this transformation is its capital, Asunción. The city remains approachable, affordable, and refreshingly livable. It is a city that manages to combine modern comforts with local charm, international connectivity with safety, and economic opportunity with cultural warmth. More than just Paraguay’s capital, Asunción is quickly emerging as one of the most attractive cities on the continent for expats, investors, and anyone searching for a better quality of life.

In this article, I’ll share why Asunción deserves serious consideration as one of the best cities in South America, exploring its lifestyle, affordability, opportunities, and safety that set it apart from its neighbours’ capitals.

ASUNCIÓN: WHERE HISTORY MEETS THE FUTURE

Walking through Asunción, you immediately feel the mix of history and modern growth. The city’s colonial architecture, historic plazas, and centuries-old churches sit alongside glass towers, boutique hotels, and luxury condominiums. Entire neighbourhoods are being revitalized. The new Héroes del Chaco Bridge, for example, connects the capital to areas that were once nearly untouched, opening them to development and investment.

This balance between tradition and progress gives Asunción unique qualities. It feels modern without losing its cultural soul, and ambitious without becoming overwhelming. Unlike megacities such as São Paulo or Buenos Aires, Asunción has preserved a human scale where daily life is not consumed by traffic, noise, or overcrowding.

LIFESTYLE AND AFFORDABILITY

One of the things that makes Asunción stand out is how much value you can get for your money while still enjoying a high quality of life.

Housing: The rent of a one-bedroom apartment in the city centre costs around $445 USD per month, and a three-bedroom apartment in the city centre costs around $800 USD, according to Numbeo.
Dining & Entertainment: The city is filled with stylish cafés, rooftop bars, and restaurants serving both local Paraguayan food and international cuisine. A high-quality meal for two, with drinks, often costs under $50 USD.
Education: For families, Asunción offers excellent international schools, making it easier for expats with children to settle in.

This affordability doesn’t mean sacrificing quality. On the contrary, many expats discover they can upgrade their lifestyle here, enjoying a home, healthcare, and social life that would be financially out of reach elsewhere.

Related content: The Real Cost Of Living In Paraguay

Asunción blends lifestyle and opportunity with strong connectivity, low taxes, and a pro-business climate, making it one of South America’s most promising cities for investors

CONNECTIVITY AND BUSINESS OPPORTUNITIES

Asunción is not just a pleasant place to live; it’s also a city of opportunity. Silvio Pettirossi International Airport connects the capital to São Paulo, Buenos Aires, Madrid, and Miami, ensuring you’re only a short flight from major regional and global hubs. Expansion plans promise even better connectivity in the years ahead.

Paraguay’s stable economy, favourable tax regime, and pro-business environment make Asunción a natural destination for entrepreneurs and investors. Real estate is booming, tech startups are taking root, and retail is expanding.

The ease of doing business is another draw. Opening a company, securing legal residency, or investing in property is far simpler here than in neighbouring countries, weighed down by bureaucracy and red tape. For those who want to grow and expand without constant government interference, Asunción offers a refreshing alternative.

In Asunción, safety meets serenity. A calm pace, friendly locals, and a strong sense of community make it one of Latin America’s most comfortable and livable capitals

SAFETY AND QUALITY OF LIFE

In a region where safety can often be a concern, Asunción stands out as one of Latin America’s calmer capitals. Paraguay consistently ranks as one of the safest countries in the region, and this stability is reflected in its capital city. For expats and families, that peace of mind makes a major difference.

Beyond safety, the lifestyle is welcoming and community-oriented. Paraguayans are known for their warmth, and Asunción reflects that spirit. Whether you’re sharing tereré in a park, strolling along the Costanera, or enjoying an evening in Villa Morra, the sense of friendliness and ease is hard to miss. It’s a city where expats often find it surprisingly easy to integrate and feel at home.

RESIDENCY IN PARAGUAY

One of the most charming features of Paraguay is its no-brainer Plan-B residency. Under the current system, you don’t need to invest in real estate, make a large bank deposit, or donate money. You can apply even if you’re not going to live there full-time, and after two years of temporary residency, you become eligible for permanent residency.

The residency permit grants you the legal right to live, work, study, and do business in the country. Even better, once you secure residency, you benefit from Paraguay’s territorial tax regime, which exempts foreign income from taxation — a powerful advantage for expats and international investors.

So, is Asunción one of the best cities in South America_ The answer is yes

More than Paraguay’s capital, Asunción is a lifestyle strategy — safe, affordable, and the perfect Plan-B for those seeking freedom in Latin America

CONCLUSION

So, is Asunción one of the best cities in South America? The answer is yes. While it may not yet have the international fame of Buenos Aires or Medellín, Asunción offers something that few of them can: affordability, safety, opportunity, and lifestyle, all wrapped into one. It’s a city that allows you to live comfortably, invest smartly, and enjoy a sense of community — without the chaos or costs of larger, overexposed capitals.

For expats, investors, and anyone seeking freedom and a better quality of life in Latin America, Asunción is more than just Paraguay’s capital. It’s a city on the rise, a place where the future is unfolding, and truly one of the best cities in South America. Even more, it offers the perfect Plan-B residency solution: a stable base, a simple path to permanent residency, and the tax advantages of Paraguay’s territorial system.

If you’re thinking about getting residency in Paraguay — or even just curious about what options are available — we’ve put together a free special report on Plan-B Residencies & Instant Citizenships to help you take your first steps.

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Written by Mikkel Thorup

Mikkel Thorup is the world’s most sought-after expat consultant. He focuses on helping high-net-worth private clients to legally mitigate tax liabilities, obtain a second residency and citizenship, and assemble a portfolio of foreign investments including international real estate, timber plantations, agricultural land and other hard-money tangible assets. Mikkel is the Founder and CEO at Expat Money®, a private consulting firm started in 2017. He hosts the popular weekly podcast, the Expat Money Show, and wrote the definitive #1-Best Selling book Expat Secrets - How To Pay Zero Taxes, Live Overseas And Make Giant Piles Of Money, and his second book: Expats Guide On Moving To Mexico.