Why More Retirees Are Choosing Paraguay

More and more retirees are discovering Paraguay as an ideal place to enjoy their golden years. Some choose the quiet life of the countryside, buying land to live self-sustainablywith a garden, a few cows, or even horses. Others prefer the convenience of city life in Asunción, where modern apartments, shopping malls, and international restaurants make life just as comfortable as in any major city in the U.S. or Europe—at a fraction of the cost.

But what makes Paraguay truly unique is the ability to combine both lifestyles. Many expats split their time—spending part of the week in a modern apartment in the city, enjoying cafés and social life, and then retreating to their country home for peace, fresh air, and open spaces. With affordable real estate and low living costs, this dream is within reach for many retirees.

And the best part? No tax on foreign income, low property costs, and easy residency.If you’re looking for a relaxed, financially smart retirement, Paraguay might just be your best-kept secret.

 

Quick overview:

Category	Details
Climate	Subtropical to temperate; Summers (Oct-Mar): average 30°C (86°F), up to 38 °C (100 °F), humid; Winters (May-Aug): 17°C (62°F), mild. East: rainy; West (Chaco): drier.
Currency	Paraguayan Guaraní (PYG, ₲); 1 USD ≈ 7,500 PYG (March 2025). Cash common; cards accepted in cities.
Cost of Living	Single: $434.80 USD/mo (no rent); Family of 4: $1,545.30 USD/mo. 64.9% lower than U.S. (Numbeo).
Groceries	Beef: $1-$2 USD/kg; Bread: $0.50-$1 USD; Imported goods match U.S. prices.
Dining Out	Local meal: $5-$15 USD; 3-course meal: $20-$30 USD.
Utilities	$50-$80 USD/mo (electricity, water, internet) for small apartment.
Residency	2-year temporary ($1,800-$2,000 USD); then permanent. Needs apostilled birth/police records.
Healthcare	Public: free, crowded; Private: $10-$20 USD/visit, $30-$80 USD/mo insurance.
Housing Options	Rent: Asunción: $500-$1,000 USD/mo modern apartments; Buy: Gated communities: $20,000 USD plot + $50,000-$100,000 build. Rent: Countryside house $300-$500, Buy: Countryside house + property: $20,000-$50,000
Investment	Studios from $34,500 USD; 17% Airbnb yield. FIFA 2030 growth expected. (Asuncion)
Safety	Among safest in Latin America; low crime. Concierges/gated areas common.
Taxes	No tax on foreign income, wealth, or inheritance. U.S. FEIE up to $130,000 (2025).

 

 

Getting Residency in Paraguay: A Simple and Affordable Process

Paraguay offers one of the easiest residency programs in South America, making it an attractive option for retirees looking to settle abroad. The process has changed in recent years—some requirements have been removed, while others have been added. Now, applicants must first obtain a two-year temporary residency before qualifying for permanent residency.

 

What You Need to Apply

To start the residency process, you’ll need a few key documents:

• Birth Certificate
• Police Record from your home country
• Marriage Certificate (if applicable)

All documents must be apostilled before submission.

 

Potential Challenges

The two biggest hurdles for applicants are:

1. Apostilling Documents – The process varies by country, so it’s best to start early.
2. Entering Paraguay – While Paraguay allows visa-free entry for many nationalities, recent rule changes require some travelers to request a tourist visa upon arrival. It’s important to check current visa requirements before booking your trip.

 

The Application Process

Once you’re in Paraguay, plan to stay at least one week to complete your residency application. It’s highly recommended to work with a residency helper, who can assist with document translations and guide you through the process.

 

Here’s what to expect:

• After two working days, you’ll be ready for your application day.
• On the application day, you’ll visit various government offices in Asunción to submit your documents.
• By the end of the day, you’ll receive an official confirmation, allowing you to remain in Paraguay legally while waiting for your residency card—even if your visa expires.
• Some residency helpers will require you to return after a few weeks for a second visit to the police station to apply for the Paraguayan Cédula/ID card. For convenience, you may prefer to find a residency helper who can complete the process in a single day. If you need a reliable helper, feel free to contact me here.
• If you need to leave Paraguay before receiving your residency card, you can arrange for priority mail delivery.

 

How Much Does It Cost?

The total cost, including government fees and residency assistance, typically ranges between $1,800 and $2,000 USD. Most payments are made in $100 bills, though some residency helpers also accept Bitcoin (BTC).

For retirees looking for an affordable, low-tax destination, Paraguay’s easy residency process makes it one of the best choices in Latin America.

 

 

Cost of Living in Paraguay: Urban Luxury or Countryside Tranquility

Paraguay offers a diverse range of living options to suit various lifestyles and budgets. Whether you’re drawn to the vibrant city life of Asunción or the serene countryside, you’ll find affordable choices that cater to your preferences.

 

Urban Living in Asunción

Asunción, the capital of Paraguay, offers a variety of housing options to suit different budgets. For those seeking an affordable start, one-bedroom apartments are available for as little as $500 USD per month. However, most expats prefer modern high-rise apartments rented monthly through Airbnb, which typically cost around $1,000 USD per month. These often include desirable amenities like gyms, swimming pools, secure parking, and barbecue areas.

For those willing to sign a longer-term contract, better deals may be available, or you can find more budget-friendly options by choosing apartments with fewer amenities. Also, keep in mind that you can often negotiate a deal—many landlords are willing to offer a 10% discount for a month-long rental if it secures a tenant.

 

 

Asunción’s rental market is diverse, so whether you prefer a trendy city-center location or a quieter neighborhood, there’s something for every lifestyle.

 

Countryside Living

For those seeking a more tranquil lifestyle, countryside homes with two bedrooms and private gardens can be rented for $300-$500 USD per month. These areas provide a peaceful environment and the opportunity for self-sustainable living.

 

 

Renting in Paraguay

Long-term rentals often come at a lower monthly rate, but it’s advisable to start with a one-month lease to ensure the location and property meet your expectations. Platforms like Airbnb offer flexible short-term options in the city, and local networks can assist in finding rentals throughout the country. If you need any help, I can connect you to the right networks. (Contact me here.)

 

Grocery Shopping and Dining Out

The cost of groceries and dining in Paraguay varies based on preferences:

• Dining Out: A meal at a local restaurant can range from $10 to $30 USD.
• Groceries: Shopping at major supermarkets like Casa Rica or Super Seis offers a range of products, including organic and high-quality items. While local products are affordable, imported goods may be priced similarly to those in the U.S. Paraguay is known for its beef, often priced 10-20% lower than in the U.S.

 

Health Insurance

Paraguay’s healthcare system comprises both public and private sectors, offering various options for residents and expatriates. Here’s an overview tailored to expatriates considering healthcare in Paraguay:

 

Public Healthcare System

The public healthcare system, known as the Sistema Nacional de Salud (SNS), provides free services to Paraguayan citizens. While foreigners are allowed to access these services, the public system often faces challenges such as overcrowding and limited resources, making it less appealing for serious medical needs.

Private Healthcare System

Private healthcare in Paraguay is well-developed, especially in major cities like Asunción. Private hospitals and clinics are generally better equipped and offer higher-quality services compared to public facilities. Many expatriates prefer private healthcare due to shorter wait times and more personalized care.

Health Insurance Options

• Local Private Health Insurance: Policies obtained within Paraguay typically cost between 30 to 80 USD per month per person, depending on the coverage level. (Source: reframed.it accessed 2025-03-21)
  
• International Health Insurance: For comprehensive coverage, especially if you travel frequently or desire coverage beyond Paraguay, international health insurance plans are available. Providers like Foyer Global Health offer tailored solutions for expatriates, ensuring access to quality healthcare worldwide.
  

 

Cost of Medical Services

• General Practitioner Consultation: A visit to a private clinic typically costs between 10 to 20 USD.
• Specialist Consultation: Seeing a specialist usually ranges from 20 to 40 USD.

It’s important to note that while private healthcare services come at a cost, they are often preferred for their quality and accessibility. Additionally, some private clinics may require upfront payment or proof of insurance before providing services.

 

 

Lifestyle & Housing – Best Areas to Live

Asunción offers a variety of neighborhoods to suit different lifestyles. Popular areas like Villa Morra, Recoleta, San Jorge, and Ycua Sati are favored for their peaceful surroundings, convenience, and accessibility. While the city center used to be the hub of activity, in recent years, development has shifted toward these outer neighborhoods, which offer a quieter environment with easy access to the city center. You can easily navigate the city using affordable Uber rides, making commuting hassle-free.

In the past, many high-end apartments catered to foreign investors and expatriates due to Paraguay’s stable economy and currency. However, there has been a recent rise in more affordable housing options within the city, opening up opportunities for both locals and newcomers alike.

 

 

If you’re looking for something more spacious, the countryside offers vast amounts of land and limitless possibilities. You can build your dream house with minimal restrictions. Water can be sourced locally, and electricity is inexpensive due to Paraguay’s abundant hydroelectric power.

 

 

Gated communities on the outskirts of Asunción, just a 45-minute drive away, offer an added sense of security. You can buy plots for as little as $20,000 USD and you can easily build a home for between $50,000 and $100,000 USD, depending on your preferences. These properties provide peace of mind if you’re often traveling, as they can be left unattended without worry.

 

Safety & Quality of Life

Paraguay is known for being one of the safest countries in Latin America, which makes it an attractive destination for expatriates. While any country requires caution, safety here is largely a matter of being respectful and mindful of your surroundings. In the city, most apartment buildings have a concierge, and gated communities outside the city ensure that access is strictly controlled—no one can enter without proper identification and a legitimate reason to visit you.

Crimes that do occur tend to be linked to personal disputes or family matters. As long as you act like a polite and respectful individual, you’ll find that life in Paraguay is safer than many might expect.

 

Tax Benefits & Financial Advantages

Paraguay offers one of the most attractive tax environments for expatriates and retirees. The country does not tax foreign income, meaning any pensions, investments, or earnings from abroad remain untouched. Additionally, there are no wealth taxes or inheritance taxes, allowing you to preserve and pass on your assets without unnecessary deductions.

For U.S. citizens, the Foreign Earned Income Exclusion (FEIE) provides an extra advantage: if you earn less than $130,000 per year (2025 limit) in foreign income, you can exclude it from U.S. taxation, making Paraguay an ideal base for financial freedom.

 

Invest in Paraguay – Modern Apartments at $1,200/m² ($111 per square ft)

Paraguay isn’t just a tax haven—it’s an emerging market with strong investment potential. You can purchase modern studio apartments in prime areas of Asunción for just $1,200 per square meter (~$111 per square foot), making it one of the most affordable real estate markets in the region.

Why Invest?

• Affordable real estate with growing demand
• Low property taxes and straightforward ownership laws
• High rental yields compared to the U.S.

If you want to learn more about investment opportunities in Paraguay? Read this article.

 

 

Development of Paraguay Until 2030

Now is an especially strategic time to invest, as Paraguay is preparing for FIFA World Cup 2030 developments. Large-scale infrastructure and modernization projects are already underway, expected to drive property values up significantly. Investors who buy now can earn rental income and potentially triple their property value before 2030.

Investment Snapshot:

• Prices start at $34,500 for a 30 m² (~323 ft²) studio in central Asunción
• Property management services can handle rentals for you
• Projected Airbnb rental income: $500/month = 17% return on investment

If you’re looking to secure a tax-free retirement and invest in a rapidly growing economy, Paraguay offers the perfect combination of affordability, stability, and financial opportunity. Find out more in this article.

 

Why Now is the Best Time to Explore Paraguay

Paraguay stands out as one of the most accessible and tax-friendly countries in the world. With affordable residency options, zero tax on foreign income, and low living costs, it’s an unbeatable choice for retirees, expats, and investors alike. No other country offers such an easy immigration process at such a low cost.

Whether you’re looking for financial freedom, a safe and affordable place to live, or an investment opportunity, Paraguay offers it all. The opportunity is here, and I’m ready to answer any questions you might have.

Take a look at what past clients said about their free calls in my reviews, and book your consultation with me here.

 

 

Want to Know More?

I help Americans relocate to Paraguay and structure their finances legally. Book a call with me to explore your options and learn how to maximize your financial freedom in South America.

My partner Alexandra and I have been researching and investing in Latin America for years, and Paraguay remains one of our top choices for its low taxes, affordable residency, and business-friendly climate. If you’re considering investing, relocating, or simply want to learn more, we offer Zoom calls to share our experience and answer your questions—including how we got residency, found investment properties, and built a sustainable lifestyle here.

 

I look forward to your questions!

Schedule a call with me here.

Paul Trausner

Lived on 4 continents and visited 60+ countries

Specializes in expat consultation for Latin America,

including residency coaching, US LLC formation, and tax optimization strategies