The Real Cost Of Living In Paraguay

For the last 25 years and counting, I’ve travelled overseas, and I have been to South America many times. In 2023, I finally visited Paraguay. From Asunción to Ciudad del Este, I saw a country in motion. I met local partners and felt the energy of a nation ready to rise. Since then, I’ve personally invested a lot in this country. That’s my way of showing confidence in countries. I believe the next decade will be transformative for Paraguay, and those who act now will be glad they did. Do you wonder what is behind this success story?

Paraguay has adopted a traditional free-market model of modernization characterized by low taxes, free trade, openness to foreign capital and investment in infrastructure. Its strict monetary policy also maintains a low and steady inflation rate. However, what makes Paraguay even more compelling is its potential. Its economy is rooted in real assets, including hydropower, agriculture, cattle, and logistics.

The cherry on top is that Paraguay offers simple and accessible permanent residency options, which can lead to citizenship. You can take advantage of these opportunities in Paraguay, where the cost of living is quite affordable compared to even most of South America. Let’s dive into the details of the living costs in Paraguay.  

AN OVERVIEW OF THE COST OF LIVING IN PARAGUAY

Although opportunities in Paraguay seem quite attractive, you may wonder if the living costs in Paraguay align with your expectations. I’ll provide detailed explanations regarding living costs in Paraguay; however, let’s start by providing average living costs to get a broader perspective. 

The monthly average expenses for a single person are $450 USD, excluding rent. Expenses such as utilities, groceries, casual dining out, and basic clothing are included in this calculation. When rent is included, a budget of between $750 USD and $900 USD will be sufficient. How about expenses for a family of four? You can expect to spend approximately $1,600 USD per month, excluding rent. With rent included, your budget should range between $2,200 USD and $2,500 USD.  

Of course, if you opt for a more luxurious lifestyle, such as gated communities, private schools for your children, private healthcare plans, and domestic help, you can expect to spend between $3,500 USD and $4,500 USD. Compared to North America or Europe, these numbers are quite affordable. 

HOUSING COSTS: RENT AND REAL ESTATE

Housing is usually one of the biggest expenses for expats in Paraguay. Even if the prices vary greatly depending on where you live and the type of accommodation you prefer, they remain affordable. The table below shows the average costs of the 1-Bedroom Apartment and the 3-Bedroom Apartment, depending on whether they are located in or out of the city centre.

GROCERY COSTS: LOCAL PRODUCE VS IMPORTS

Paraguay’s local produce is especially strong because the country benefits from rich natural resources and a long tradition of agriculture and livestock farming. The table below presents some of the costs of common grocery items to give you an idea of the daily expenses of groceries.

DINING OUT: FROM LOCAL FONDAS TO INTERNATIONAL DINING

You can enjoy affordable traditional meals at local fondas and markets, where authentic Paraguayan dishes, such as sopa paraguaya or asado, are served at very reasonable prices. At the same time, international and upscale restaurants, especially in expat-friendly neighbourhoods like Villa Morra in Asunción, tend to be more expensive but offer a wider variety of global cuisines and higher-end dining experiences. You can find the typical costs of dining options in the table below.

TRANSPORTATION

Public transportation in Paraguay, particularly in Asunción, is accessible and reasonably affordable, with a well-established bus network that covers much of the city and its surrounding areas. However, owning a car in Paraguay can be relatively expensive due to import taxes. The table below provides an overview of transportation-related costs in Paraguay.

UTILITIES, INTERNET, AND MOBILE SERVICES

Paraguay’s infrastructure, particularly in urban areas such as Asunción, is improving fast, with some challenges. Electricity and water services are generally reliable in the capital and major cities, and high-speed internet is increasingly available. You can find the average utility and communication costs in the table below.

HEALTHCARE ADVANTAGES FOR EXPATS

Paraguay offers both public and private healthcare options. However, many expats prefer private insurance for better quality and faster service. Private healthcare facilities in Asunción and other urban areas provide higher-quality care. Basic private insurance plans in Paraguay can start at around $50 USD per month, covering routine care and some treatments, while more comprehensive plans are also available at higher prices.

Paraguay taxes residents on their worldwide income, so expats should consider this when planning their finances. However, lower taxes and a business-friendly environment are huge pluses for Paraguay.  

A COMPARISON TO OTHER REGIONS

When comparing the cost of living in Paraguay with Canada and the United States, the difference is substantial. Both North American countries are far more expensive in every major category. Excluding rent, the cost of living in Canada is 153.9% higher than in Paraguay, while the U.S. sits even higher at 171.5% more. When housing costs are included, the gap widens further—Canada is 178.4% more expensive, and the U.S. reaches 215.4% higher than Paraguay.

Rent prices highlight the contrast most sharply. In Canada, rent is 265.9% higher, and in the United States, it’s an astonishing 371.5% higher than in Paraguay. Daily expenses also show dramatic differences. Restaurant prices are 191.6% higher in Canada and 224.0% higher in the U.S. Groceries follow a similar trend, with Canada at 181.5% more and the U.S. at 195.6% more than Paraguay.

For anyone earning in foreign currency, living on a pension, or simply seeking a more affordable and comfortable lifestyle, Paraguay offers exceptional value.

Looking for peace, freedom, and simplicity? Paraguay offers low stress, open space, and a grounded lifestyle, perfect for expats ready to live life on their own terms

CONCLUSION

Paraguay may be one of South America’s best-kept secrets. With its warm climate, peaceful lifestyle, and welcoming culture, it offers a refreshing alternative for those seeking more freedom, personal space, and a sense of calm in their day-to-day lives. Whether you're drawn to wide-open landscapes, low bureaucracy, or the simplicity of life away from the noise, Paraguay delivers a grounded, stress-free environment ideal for long-term living.

It’s a place where you can lay down roots, raise a family, or work remotely without the complications often found elsewhere. From friendly locals to growing expat communities, Paraguay is increasingly becoming a smart destination for those who want to live on their own terms.

If you’re thinking about building your second home, diversifying your residency, or simply living with more freedom, Paraguay is worth a serious look. Download our free report on Plan-B Residencies and Instant Citizenships to explore your Plan-B strategy today.