Paraguay: Residency paths, cost of living, and best expat towns

Paraguay doesn’t usually come up in conversations when people talk about moving abroad. Ask someone to name South American countries and you’ll hear Brazil, Argentina, Colombia, maybe Chile. Paraguay? Most folks draw a blank.

That’s kind of the beauty of it. It’s not overrun with tourists, not plastered all over Instagram, and the people who do end up there often feel like they’ve stumbled on a secret.

It’s one of my favorite countries in the world, and my #1 destination to move to next year. I can’t wait to make it my permanent living Base.

If you’re curious about what life there actually looks like (how to stay legally, how far your money goes, and which towns people like to settle in) let’s dig in.

Residency: how you actually get in the door

A few years back, Paraguay was famous in expat circles for having one of the easiest residency programs in the world. You could literally apply for permanent residency straight away, no “temporary stage” nonsense.

Word got out, people took advantage, and eventually the government said: okay, time to tighten things up.

Now, it works differently. You start with temporary residency, usually valid for two years. After that, if you’re still around, you can apply for permanent.

Compared to most countries, it’s still very straightforward: you don’t need to buy half a million dollars’ worth of property or anything dramatic like that. But it’s no longer an instant permanent pass.

Paperwork-wise, you’ll need police records, birth certificate, health check, and yes, the dreaded apostille stamps if those papers come from abroad.

Paraguay citizenship

What makes Paraguay stand out is the short timeline to citizenship. If you hold permanent residency and actually live there, you can apply for a passport after just 5 years (in total).

1. Under the current two-stage system, you must hold Temporary Residency for 2 years before upgrading to Permanent Residency.
2. Since the 3-year constitutional clock for citizenship begins after obtaining Permanent Residency, the total standard timeline from entry to naturalization eligibility is actually 5 years (2 years temporary + 3 years permanent). (Note: Only direct investors who obtain PR immediately under programs like SUACE can reach eligibility in 3 years).

That’s quick compared to, say, Argentina (five years) or Spain (ten years).

Paraguay dual nationality

Dual nationality is a tricky subject.

Currently, Spain and Italy are the only countries with a formal dual-citizenship treaty with Paraguay. For citizens of almost all other nations (such as the US, UK, Canada, or EU countries), Paraguayan law technically requires renouncing your original citizenship upon naturalization, even if enforcement in practice varies.

That being said, the Paraguayan judicial system and the Directorate General of Migration do not require you to provide a official certificate of loss/renunciation of your original citizenship to receive your Carta de Naturalización.

During the final sworn oath before the Supreme Court, you swear allegiance to the Republic of Paraguay and its constitution. Under standard international legal interpretation, this implies taking precedence over prior national allegiance within Paraguayan borders, but there is no post-naturalization enforcement mechanism that tracks or forces you to renounce your original EU citizenship.

Of course, nothing in Latin America happens overnight. Bureaucracy can move slowly, and you’ll need patience to get through the process. But in the end, it’s one of the easier doors into the continent.

Cost of living: easy on the wallet

One of the big reasons people look at Paraguay is cost. Simply put, living there is cheap compared to a lot of the world.

Not “backpacker cheap,” but “live comfortably without sweating over every bill” cheap.

It’s one of the main reasons it’s so highly rated on my site.

Paraguay rent

Rent is where you notice it first. In Asunción, you can find a decent modern apartment in a good area at a price that would barely cover a storage unit in New York or London. Go outside the capital and it gets even cheaper. If you’re the type who dreams of land, Paraguay has loads of it, and the prices can be surprisingly accessible.

Paraguay cost of food

Food is another area where your money goes far. Paraguayans love their beef, manioc, corn-based dishes, and cheese. Eating out won’t set you back much, and shopping at local markets is ridiculously affordable. You can fill your bags with fresh produce for what feels like pocket change compared to supermarket prices in the U.S. or Europe.

Paraguay cost of utilities

Utilities? Electricity is generally cheap thanks to Paraguay’s giant hydroelectric plants. Internet and mobile services don’t cost much either, though speeds can be uneven outside the cities. However…

• Due to Paraguay’s intense sub-tropical heat (temperatures regularly hit over 40°C / 104°F in summer), AC units run continuously.
• Poor insulation in standard construction, paired with tiered tariffs for high consumption, means summer electric bills often jump from $30 – $50 to $100 – $150+ per month, catching many expats off guard who expected minimal power bills.

Paraguay imported goods

What will sting is imported goods. Electronics, fancy wines, or anything shipped in from abroad gets hit with high import costs. So if you can’t live without your exact brand of laptop or perfume, be ready to pay.

That being said, surprisingly, Paraguay (specifically border commercial hubs like Ciudad del Este) is famous across South America for being a duty-free/low-tax haven for electronics. Laptops, phones, and camera gear bought from major importer outlets are often priced at parity with or even lower than in Europe or North America, drawing buyers from neighboring Brazil and Argentina.

Paraguay healthcare

Healthcare is surprisingly accessible. Public hospitals exist, but they’re stretched thin. Private clinics in Asunción and a few other cities are the go-to for most expats, and the prices are low compared to North America. Many people just pay out of pocket because the bills are manageable.

While routine doctor visits or basic tests are cheap out-of-pocket ($20–$40 per visit), the standard approach for residents and expats in Paraguay is subscribing to a private medical prepayment plan (medicina prepaga) rather than relying solely on out-of-pocket spending.

• Comprehensive local private coverage (from providers like Santa Clara, Asismed, or Migone) generally costs only $40 to $90 a month per person.
• Relying strictly on out-of-pocket for major surgeries or emergency ICU stays in top private clinics can still mount up quickly, so almost all long-term expats enroll in a local prepaga.

Paraguay overall cost of living

• As a ballpark: a single person can live very comfortably on about $1,200 a month.
• Couples on $2,000 can live well, maybe even travel around a bit.
• For a family of 4, I’d say $2,500 can easily cover it, based on official numbers.

However, based on personal experience, my family and I spent less than $2,000 per month there, and we lived in an expensive 3BR AirBnB in the best, and most expensive, area in Asuncion and went out to eat every day (the food is so goddamn good and cheap… 4-5 plates with vegetables, meat and potatoes for $15).

Where expats actually live

Paraguay isn’t a huge country, but different towns have different vibes. Here’s the quick-and-dirty breakdown.

Asunción

The capital is the default landing pad. It’s got the best hospitals, schools, and infrastructure. You’ll also find more English speakers here than anywhere else, though Spanish is still essential.

As an aside, something to keep in mind, while Asunción does host international schools and foreign corporate offices, English proficiency among the general population remains very low across all of Paraguay. Outside upper-class pockets, international hotels, or expat meetups, everyday transactions (taxis, supermarkets, government offices) rely strictly on Spanish or Guaraní.

Certain neighborhoods, Villa Morra, Carmelitas, are where most expats settle. These areas have cafés, shopping malls, and a bit of nightlife.

Asunción is far less chaotic than other Latin American capitals. Yes, there’s traffic, but it’s not at São Paulo levels AT ALL. If you like convenience and a built-in expat presence, this is the easiest place to start.

Encarnación

Down south, on the Paraná River, Encarnación feels different. It’s sometimes called Paraguay’s beach town, not because of an ocean, but because the riverside has sandy stretches where people swim and hang out. In summer, the whole place comes alive with festivals, music, and a big social scene.

It’s slower-paced than Asunción, with cheaper living costs. Expats like it because it feels relaxed, but still connected. And if you ever want a change, Argentina is literally across the bridge.

Ciudad del Este

This one’s a different beast. Ciudad del Este is Paraguay’s big commercial hub, sitting right on the triple border with Brazil and Argentina. People flood in from both sides to buy electronics, clothes, and just about anything else at bargain prices.

The city itself is hectic, crowded, and not always polished. But it has energy. Plus, you’re next door to Iguazú Falls, which is one of the most incredible sights in the world. Some expats love the buzz, others find it exhausting.

Ciudad del Este is primarily a commercial daytime city. Because it is a border shopping center, the city core virtually shuts down after business hours.

Most expats or visitors seeking nightlife or refined residential dining cross the International Friendship Bridge directly into Foz do Iguaçu (Brazil) or Puerto Iguazú (Argentina) rather than staying out in downtown CDE at night.

Smaller towns and countryside

A lot of foreigners, especially Europeans and North Americans, have chosen smaller towns or outright farmland.

• Villarrica and Caacupé come up often: places that are big enough to have services, but small enough to feel like “real Paraguay.”
• San Bernardino (San Ber): Located just ~45 minutes outside Asunción on Lake Ypacaraí, San Ber is the premier resort town in Paraguay. It has the highest concentration of affluent European and North American expats seeking suburban/lakeside living, high-end amenities, and fast internet.
• The German Colonies (Colonies of Itapúa): Towns like Hohenau, Bella Vista, and Obligado in the south form a massive European/German expat hub known for distinct European infrastructure, high safety, and established agricultural communities.

Internet can be hit-or-miss, and rural roads are rough. But if your dream is land, quiet, and a simpler lifestyle, this is where Paraguay shines. You’ll spend far less than you would buying property in Argentina or Uruguay.

Everyday life: what it feels like

Paraguayans are known for being warm and laid-back. The culture is family-oriented, social, and very tied to traditions.

The national drink, tereré, is a perfect example. It’s yerba mate, but served cold, and you see people carrying thermoses and cups everywhere. Sharing it is a social ritual: you don’t drink tereré alone if you can help it. (I personally dislike it, give me normal water or tea any day of the week instead!)

Spanish is the main language, but Guaraní, the indigenous language, is also widely spoken. It’s common to hear people switch between the two in the same conversation.  

Both Spanish and Guaraní are co-official languages of Paraguay (established under the 1992 Constitution). If you make an effort to learn Spanish, your life will be easier. Pick up a few words of Guaraní and you’ll really win people over.

Of course, not everything is perfect. Bureaucracy moves at a crawl. Things that should take a week sometimes take months.

Outside the capital, infrastructure is patchy: roads with potholes, occasional power cuts, slow internet. But most expats decide the trade-off is worth it because life is affordable, friendly, and low-stress.

Wrapping it up

Paraguay isn’t flashy. It doesn’t scream for attention. But that’s exactly what some people love about it – perfect for expats like myself.

Residency is still easier than most places in the region. Daily costs are low enough that you can stop stressing over bills.

And you can choose your lifestyle: city convenience in Asunción, riverside relaxation in Encarnación, border hustle in Ciudad del Este, or wide-open land in the countryside.

It’s not everyone’s cup of tea, which is another extremely appealing factor in my eyes.

If you need everything polished and perfectly organized, you’ll probably get frustrated. But if you’re okay with things being a little rough around the edges, Paraguay rewards you with a slower, friendlier, more affordable way of life.