Paraguay, a landlocked country in the heart of South America, offers one of the region's most affordable living costs combined with a growing economy. With a population of approximately 7.3 million people, Paraguay provides a unique blend of traditional culture and modern amenities, particularly in urban centers like Asunción.

Paraguay's economy has shown steady growth, driven by agriculture, hydroelectric power, and a growing services sector. The country has positioned itself as an attractive destination for investors and retirees due to its low cost of living, simple tax system, and relatively straightforward residency process.

The expatriate community in Paraguay is concentrated primarily in Asunción and surrounding areas like San Lorenzo and Luque, with growing populations in Ciudad del Este and Encarnación. Many are drawn by the combination of affordable living costs, relaxed lifestyle, and favorable tax environment.

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Regional Comparison

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Housing Costs in Paraguay

Housing costs in Paraguay are notably affordable, even in prime areas. In Asunción's upscale neighborhoods like Villa Morra or Carmelitas, a one-bedroom apartment typically rents for 2,500,000-4,000,000 PYG monthly, while similar accommodations in middle-class areas range from 1,500,000-2,500,000 PYG. Other cities offer even more affordable options, with rentals typically costing 1,000,000-2,000,000 PYG monthly.

Summary:

• Rent, 1-bedroom apartment (Asunción upscale): 2,500,000-4,000,000 PYG/month
• Rent, 1-bedroom apartment (Asunción middle-class): 1,500,000-2,500,000 PYG/month
• Rent, 1-bedroom apartment (other cities): 1,000,000-2,000,000 PYG/month

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Food Costs in Paraguay‍

Food expenses in Paraguay are very reasonable, particularly when choosing local products. A meal at a local restaurant costs 25,000-40,000 PYG, while dinner at an upscale restaurant might run 60,000-100,000 PYG per person. Monthly grocery shopping at supermarkets like Stock or Superseis typically costs 1,000,000-1,500,000 PYG for one person, though shopping at local markets can reduce costs significantly.Summary:

• Local restaurant meal: 25,000-40,000 PYG
• Upscale dinner: 60,000-100,000 PYG
• Monthly groceries (1 person): 1,000,000-1,500,000 PYG

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Transportation Costs in Paraguay‍

Transportation in Paraguayan cities primarily relies on buses and taxis. Local bus fares cost 2,300-3,500 PYG, while taxi rides typically range from 15,000-30,000 PYG for short trips. Many expatriates choose to own vehicles due to limited public transportation options, though this comes with higher initial costs due to import duties.Summary:

• Bus fare: 2,300-3,500 PYG
• Taxi (short trip): 15,000-30,000 PYG
• Monthly transportation: 200,000-300,000 PYG

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Healthcare Costs in Paraguay

‍Healthcare in Paraguay operates through both public and private systems. Private health insurance typically costs 300,000-600,000 PYG monthly per person, depending on coverage. A consultation at a private clinic costs 100,000-200,000 PYG, while specialist visits range from 150,000-300,000 PYG. Most expatriates use private healthcare facilities in major cities.Summary:

• Private health insurance: 300,000-600,000 PYG/month
• Doctor's consultation: 100,000-200,000 PYG
• Specialist visit: 150,000-300,000 PYG

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Utility Costs in Paraguay‍

Utility costs in Paraguay can be significant, particularly due to air conditioning use in the hot climate. Monthly utilities including electricity, water, and garbage collection typically range from 400,000-800,000 PYG for an apartment. Internet service costs 200,000-400,000 PYG monthly for reliable connections. Mobile phone plans with data typically range from 100,000-200,000 PYG monthly.Summary:

• Basic utilities: 400,000-800,000 PYG/month
• Internet: 200,000-400,000 PYG/month
• Mobile phone plan: 100,000-200,000 PYG/month

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Example Monthly Expenses in Paraguay

‍Average monthly expenses for a single person living in Asunción:

• Rent (1-bedroom, good area): 3,000,000 PYG
• Utilities: 600,000 PYG
• Food: 1,200,000 PYG
• Transportation: 250,000 PYG
• Healthcare (insurance): 400,000 PYG
• Internet/Phone: 300,000 PYG
• Entertainment: 500,000 PYG
• Total: 6,250,000 PYG

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Cost of Living vs Quality of Life Correlation

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If you want to know more about Paraguay and the cost of living there you can also check out the Paraguay page.