Living in Paraguay: how much does it really cost?

Why move to a country like Paraguay? What are the concrete benefits of such a big life change?

Paraguay is still a little-known country, yet it has many advantages economically and socially. With an area of about 400,000 square kilometers and a population of 7 million, Paraguay is open to welcoming foreigners and retirees who want to relocate there.

Below you’ll find a great deal of useful information that we’ve gathered to help you make a concrete assessment about potentially relocating to Paraguay.

Market and currency

The national currency of Paraguay is the guarani, one of the oldest on the entire American continent. Its stability can be traced all the way back to the time of independence from Spain and, since then, the guarani has never been devalued. Paraguayan markets are stable and this South American country offers one of the most attractive tax systems in the world.

Goods and service tax (VAT) is 10% and the cost of living is decidedly low, as are rental prices.

Taxation is 0% for all income earned outside Paraguay.

Life as an immigrant in Paraguay

In Paraguay, one never feels like a “foreigner”: many Paraguayans are of European descent, the local cuisine can be likened to Mediterranean cuisine since it is based on the use of flour, and the local people are so welcoming and friendly to everyone, including foreigners, that it is almost hard to believe.

A bidet is always present in homes, which is not at all a given.

Last but not least, Paraguayan people have an informal and inclusive lifestyle and way of relating to others, most likely due to the fact that Paraguay has always been a land of immigrants.

The climate of Paraguay

There are basically two seasons in Paraguay: a longer hot one and a shorter cool one.

In fact, the Paraguayan winter is very mild (15-20°C) and it lasts from mid-May to mid-August, while the long, hot summer (30-37°C) lasts from November to March. Brief afternoon downpours are frequent during the summer.

Being in the southern hemisphere, the seasons are reversed compared to Europe.

The importance of family

Family in Paraguay is still an important value, with large family meals on Sunday and stores closed on holidays.

During the summer in Paraguay and especially in Encarnación, people usually leave the house with a striped deck chair and thermos of tereré (a drink similar to Argentine yerba mate, but enjoyed cold), to find a place to sit in the shade and chat.

Cost of living in Paraguay

Fuel: gasoline costs about €1 per liter and diesel €1.27 per liter. In the area bordering Argentina, fuel is cheaper and often sold in bottles along the road.

Internet and TV subscriptions: deals can be found at different prices. On average, a contract that includes ADSL for the home plus TV with various sports channels and RAI costs €38 per month.

Phone plans and Amazon: again there are different providers and pricing plans, but on average, you can get 8 gigs and unlimited calls plus an Amazon Prime subscription for about €11 per month.

Haircuts: a men’s haircut costs €5, a women’s haircut €6.

Schools: an average private school costs about €58 monthly, for 11 months per year.

Food prices

Some examples of prices for everyday foods, updated to June 2024:

Alimento	Prezzo in euro
Latte intero (1l)	0,87
Baguette di pane	0,48
Farina (1Kg)	0,76
Acqua naturale (2l)	0,38
Uova (cartone da 6)	0,76
Riso (1Kg)	0,76
Detersivo piatti (1l)	0,90
Ammorbidente (1l)	1,99
Coca Cola (1,5l)	1,39

 

Rental prices

Let’s take Encarnación, a city with a population of about 127,000 located on the banks of the Paraná River, as a reference.

To rent a convenient, centrally located, furnished apartment of about 130 square meters, with a shared swimming pool and 24-hour doorman, you can expect to pay about €250 per month.

A detached home or townhouse in a good location, equipped with a garden and ample space, starts from €500 per month. For high-end properties, which fall into the “luxury” category, prices start from €600 per month.

In Asunción, the capital city of Paraguay, prices are a bit higher: apartments start at €300 monthly, while a single-family home will run about €900-€1,000 monthly.

Utility prices

The prices below refer to those of a 3-person family in a 130-square-meter apartment.

Electricity bill: €10 to €13 monthly.

Water bill: €8 to €15 monthly.

Healthcare in Paraguay

Living in Paraguay requires private health insurance. Like everywhere in the world, there are several options, all of which include doctor’s visits as a baseline.

More comprehensive packages generally also offer clinical tests, hospitalizations, surgeries and other services.

The average price for good health insurance ranges from €20 per month to €100 per month. A specialist visit without insurance costs between €15 and €30.

Car insurance

Although car insurance is not mandatory in Paraguay, as you can imagine, it is highly recommended. Moreover, it is required to drive into neighboring countries.

The price of liability car insurance is €10 monthly, for the duration of one year. The price does not depend on the power of the car’s engine.

Of course, the basic price goes up depending on the various options selected: theft, fire, weather damage, comprehensive coverage and more. For more information, here is a Paraguayan insurance website that we consider reliable: sancorseguros.com