South America has long been celebrated for its stunning nature, rich biodiversity, and welcoming people. From the peaks of the Andes to the energy of its cities, it is a region that sparks curiosity around the world. Yet too often, outsiders only know South America from newspaper headlines that focus on politics, unrest, or stereotypes. The truth is more complex—and often far more attractive—especially when it comes to quality of life and cost of living.
Daily life there can be surprisingly affordable, offering modern amenities, vibrant culture, and opportunities that many expats and digital nomads overlook. For those with income from abroad, the advantages multiply: in territorial tax countries like Paraguay, you are not taxed for the income you made abroad.
In this article, I’ll highlight the cheapest countries in South America, explain how the cost of living is measured, and then show you the rankings. Keep in mind that this is about affordability — not the best destinations for expats.
Venezuela: despite low living costs, hyperinflation, political turmoil, and failing infrastructure, it makes it far less livable than its neighbours
Venezuela has long been experiencing the oil curse, where vast natural resources are used to support poverty-creating authoritarian regimes, instead of freedom and wealth. With vast oil reserves, Caribbean beaches, and once-thriving cities, the country had every ingredient for prosperity.
However, decades of socialist mismanagement, populist policies, and corruption have eroded the economy and left the political system in a state of permanent crisis. Hyperinflation, shortages, and collapsing infrastructure have turned daily life into a constant struggle for many Venezuelans. On top of that, Venezuela runs a worldwide tax system — meaning that once you become a taxpayer, you’re also required to pay taxes on any foreign income.
Despite this chaos, the raw numbers show just how cheap life in Venezuela has become. Living in Venezuela costs about 60% less than in New York City. Rent is around $270 USD for a one-bedroom apartment in the city center, which is low even by global standards, and basic goods can be inexpensive (1kg of beef round costs $7,5 USD)—if they are available at all.
When you measure Venezuela against the United States or Canada, the contrast is, for sure, striking. The cost of a one-bedroom apartment in New York is around $4,000 USD, and the same apartment in Toronto costs $1,700 USD. However, the services and infrastructure in the US and Canada simply don’t compare. Power outages are common, internet access is unreliable, and public healthcare has collapsed.
Although Venezuela appears inexpensive, hyperinflation, instability, and low purchasing power make it far less livable than its neighbours, and that’s why, in many indices, it is listed alongside expensive countries like Chile and Uruguay.
Ecuador is a small yet diverse country, where the Andes Mountains, Pacific beaches, and the Galápagos Islands all fit within a compact territory. Ecuador has managed to maintain a relative degree of stability. The election of Daniel Noboa has brought cautious optimism that reforms may help steer the country toward more market-friendly policies and greater stability. However, Ecuador also adopted a worldwide tax system that levies taxes on income sourced abroad for its residents.
For everyday life, Ecuador is quite affordable. The overall cost of living is about 66% lower than in New York City. For example, a one-bedroom apartment rents for about $400 USD in Cuenca or $450 USD in Quito.
Ecuador’s advantage becomes obvious when measured against the U.S. or Canada. One person’s monthly cost (excluding rent) in Ecuador is about $550 USD, while it averages $1,050 USD in Canada. In Quito, a one-room apartment can cost less for an entire month than a single week’s rent in Vancouver, where a one-room city-center apartment averages around $2,000 USD. Private healthcare is affordable and reliable, and day-to-day expenses like eating out or taking taxis remain accessible even for modest incomes. For example, a meal at an inexpensive restaurant costs around $5 USD. So, Ecuador demonstrates how affordability can coexist with livability.
Peru: affordable living with modern cities, rich traditions, and reliable services. Despite political turmoil, costs remain far below Canada and the U.S
Peru is a land of great contrasts. The Pacific coast has a modern life, while the Andes highlands stand out with their centuries of traditional life. The vast Amazon basin amazes with its unmatched biodiversity. However, it has been experiencing frequent leadership changes, corruption scandals, and protests. Nevertheless, mining, agriculture and tourism, which form the backbone of the economy, continue to carry the country on solid foundations. Residents in Peru are taxed on their worldwide income, so your income sourced outside of the country is also subject to tax.
Life in Peru is surprisingly affordable. On average, living in Peru costs about 69% less than in New York City. For example, the monthly costs for a single person average around $540 USD in Peru.
When you compare Peru with the U.S. or Canada, the difference in cost of living is truly staggering. A comfortable one-bedroom apartment in Lima’s city center costs around $660 USD, which is only one-third of the cost in Toronto. Groceries, dining, utilities, and transportation are all modern and reliable, yet the monthly cost for one person is about $550 USD — compared to around $1,200 USD in the U.S. Private healthcare in Lima or Arequipa can match what you’d find in North American clinics, with a fraction of the cost in the U.S. Even internet access and mobile services have improved to the point where remote work or running a business is perfectly feasible.
Overall, Peru sits comfortably in the middle ground of South America. It’s more expensive than Colombia or Paraguay, but still far below Brazil’s urban centers.
Colombia: a rising South American power blending affordability with modern living. Cities like Medellín offer innovation, comfort, and low costs compared to Canada or the U.S
Colombia has been transforming itself over the past two decades. Since peacefully resolving its internal conflicts, Colombia has been remarkably successful in building stronger institutions and investing in infrastructure. Colombian cities like Bogotá and Medellín are now emerging as hubs of technology and innovation, with foreign companies competing for numerous infrastructure projects. As a result, Colombia has become one of South America’s rising powers. However, Colombia applies a worldwide tax system, meaning your foreign income is also taxed.
Even with the rapid development of modern cities, Colombia still offers some of the best value in the region in terms of affordability. The cost of living in Colombia is about 72% lower than in New York City. Rent, groceries, transportation, and healthcare are still very affordable by international standards. The cost of living (excluding rent) for one person is around $550 USD, and a one-bedroom apartment in the city center costs around $370 USD. This means that even on a modest income, daily life in Colombia is manageable. Therefore, for many, Colombia represents the perfect balance between affordability and modern conveniences.
Comparing Colombia with some of the North American cities can be shocking. A one-bedroom apartment in San Francisco’s city center costs around $3,550 USD, while a similar place in Medellín is only about $550 USD. Unlike the U.S., eating out in Colombia is still not a luxury but a regular part of daily life. A meal at an inexpensive Colombian restaurant costs about $4.50 USD, compared to roughly $18 USD in Canada.
With the growth of the middle class and investments in digital infrastructure, Colombia now offers a lifestyle that is both modern and connected—and at a third of the price you'd expect in the U.S. or Canada.
Brazil’s Northeast offers stunning beaches, modern amenities, and a cost of living up to 78% lower than New York; making it one of South America’s best-kept secrets
Brazil is unquestionably the giant of South America—culturally, geographically, and economically. With more than 200 million people, the country has long been regarded as a regional powerhouse. Yet, its story is not just about size. Diversity within the country is amazing. You can choose between modern megacities, booming agricultural regions, or coastal provinces where daily life feels far removed from the chaos of São Paulo or Rio de Janeiro. While headlines often focus on the country’s political battles or economic struggles, many provinces have quietly become affordable and comfortable places to live. However, Brazil has a worldwide tax system, meaning that income earned abroad is also subject to tax.
Affordability in Brazil depends heavily on where you go. Life in São Paulo, Rio, or Florianópolis can cost as much—or more—than in Colombia’s big cities. However, if you shift your attention to the northeast, to states like Ceará, Racife, or Bahia, the picture changes completely. In this region, the cost of living is roughly 71% to 78% lower than in New York. These numbers put it on par with some of the cheapest destinations in the region, such as Paraguay and Bolivia. Brazil is also cheaper than Uruguay at 45% lower, Chile at 60% lower, and Venezuela at 60% lower. A one-room apartment rent costs around $340 USD in Recife, and a single person’s cost of living (excluding rent) is about $540 USD. So, these areas are often less expensive than in Colombian cities like Medellín or Bogotá. However, you still get modern amenities, reliable healthcare, and decent infrastructure.
When you compare Brazil to the U.S. or Canada, the contrast is massive. In Fortaleza, a one-bedroom apartment in the city center costs about $350 USD, compared to $2,400 USD in Illinois and $1,900 USD in Vancouver. Dining out is inexpensive and accessible, and fresh local produce is abundant. In Fortaleza, a simple meal costs $6 USD — versus $18 USD in Vancouver and $21 USD in Illinois. In addition to these advantageous costs of living, high-quality private healthcare remains affordable in Brazil. The key difference is that in Brazil, unlike in Venezuela, lower costs don’t mean giving up on quality services. So, you can enjoy the benefits of a major economy without paying major-economy prices.
Bolivia: from La Paz’s highlands to Santa Cruz’s lowlands, life is affordable, 74% cheaper than New York, while a territorial tax system keeps foreign income untaxed
Bolivia is often overlooked, but it remains one of the most fascinating countries in South America. From the high-altitude capital of La Paz to the lowland city of Santa Cruz de la Sierra, Andean traditions blend with increasing urban dynamism. However, the country still struggles with socialist policies that slow reform and destabilize politics. Yet, its economy has started to diversify beyond mining and natural gas into agriculture, manufacturing, and services. The good news is that Bolivia has a territorial tax system that doesn’t tax income sourced outside of Bolivia.
In terms of affordability, Bolivia stands out as one of the most affordable countries in South America. The cost of living is about 74% cheaper than in New York City. A one-bedroom apartment in the city center costs around $400 USD, and the monthly cost for one person (excluding rent) is around $500 USD. Eating out is very affordable — a meal at an inexpensive restaurant costs about $3 USD.
How cheap life in Bolivia is becomes clear when you compare it to the U.S. or Canada. In Santa Cruz de la Sierra, a one-bedroom apartment in the city center rents for about $400 USD, compared to $2,000 USD in Ottawa and $2,600 USD in Los Angeles. Utilities and transportation also come in far lower, meaning even modest incomes stretch much further. The cost of living for one person is around $510 USD in La Paz, while it is $1,370 USD in Miami. Private healthcare, though less available than in larger economies, is still far more affordable than in the U.S. While infrastructure is not as advanced as in Brazil, the essentials for daily life are firmly in place and improving in major cities.
Paraguay: South America’s rising star with the lowest cost of living in the region, modern infrastructure, and simple residency — a hidden gem for expats and investors
Paraguay is quickly emerging as South America’s rising superstar. It was a largely agricultural society at the end of the 1990s. However, since then, it has deregulated its markets, followed an open international policy to integrate the global order and improved its democratic governance to stabilize its politics. The result is a country that feels increasingly confident about its future. Modern roads, new housing developments, and foreign direct investments all point to a country on the rise. A big advantage is that Paraguay uses a territorial tax system, so your foreign-earned income stays outside the reach of domestic taxation.
The cost of living in Paraguay is the lowest in South America, averaging about 77% cheaper than in New York City. Living in Paraguay is even cheaper than in Bolivia, where costs are 74% lower than in New York City. This is a huge cost difference. For example, a one-bedroom apartment in the city center of Encarnacion costs around $390 USD, while a similar rental apartment in Miami costs $3,000 USD. The monthly cost of living of a single person in Paraguay is around $500 USD, but one person needs at least $1,400 USD in Miami. Private healthcare is also highly affordable, with options improving as investment flows into the sector. It’s rare to find a country that offers modern amenities at such a low cost. Paraguay isn’t just far cheaper than the U.S. — it’s also considerably more affordable than many other Latin American countries.
Paraguay’s infrastructure has reached the point where daily life feels modern—reliable internet, new shopping centers, and international-standard healthcare facilities—but without the crushing expenses of North America.
Many of my clients have witnessed with their own eyes the progress and the opportunities growing in Paraguay during our exploration and investment tour. So, Paraguay's charm goes far beyond its low cost of living. Expats are discovering a safe, welcoming environment where they can build businesses, invest in real estate, and simply enjoy a high quality of life at the lowest costs in the region.
Paraguay makes residency simple — no bank deposit, no property purchase, and you don’t even have to live there full-time. Temporary residency can turn permanent in two years, which is why this hidden gem should be under your radar.
Cheaper doesn’t always mean better. Explore, experience, and gain perspective; each journey reshapes how you see the world and where you choose to call home
Just because a country is cheaper than where you live doesn’t mean you should pack your bags tomorrow. This ranking isn’t a recommendation to move — in fact, many of these countries wouldn’t make my personal list. But that doesn’t mean they’re not worth your time. Maybe it’s not a country to relocate to, but it could be a country to visit, explore, and experience — helping you understand the world beyond your own borders. Every trip adds perspective and teaches lessons that no ranking can fully capture.
Speaking from experience, having travelled around the world many times and lived in several countries for extended periods, I can tell you that rethinking where you live can open doors you never knew existed. If you're unsure where to begin your journey, don't worry. You can easily access more information by downloading our free special report on Plan-B Residencies & Instant Citizenships. I'd be happy to help.