Cost of Living in Paraguay
Paraguay offers exceptional value, especially for those earning in dollars or euros. The cost of living is approximately 60-65% lower than in the United States or Western Europe.
Monthly Budget Overview
| Expense | Budget Living | Comfortable | Premium |
|---|---|---|---|
| Rent (1BR apartment) | $250-350 | $400-600 | $700-1,000 |
| Utilities (electric, water, gas) | $40-60 | $50-80 | $80-120 |
| Groceries | $150-200 | $200-300 | $300-400 |
| Dining out | $50-100 | $150-250 | $300-500 |
| Transportation | $30-50 | $50-100 | $150-300 |
| Internet + Phone | $40-60 | $50-70 | $70-100 |
| Entertainment | $50-100 | $100-200 | $200-400 |
| Health insurance | $50-100 | $100-200 | $200-400 |
| Total | $660-1,020 | $1,100-1,800 | $2,000-3,200 |
Key Cost Factors
Housing is remarkably affordable. A modern one-bedroom apartment in a good Asuncion neighborhood (Villa Morra, Las Carmelitas) runs $400-600/month. In Encarnacion or smaller cities, expect 20-30% less.
Food is inexpensive, especially local products. A meal at a basic restaurant costs $4-6, mid-range dinner for two is $20-30. Grocery costs are low, particularly for meat, produce, and local goods.
Transportation is cheap if you use buses (under $1 per ride) or ride-sharing apps (Uber/Bolt). Owning a car adds $200-400/month (fuel, insurance, maintenance).
Utilities are very affordable. Electricity is among the cheapest in South America thanks to the Itaipu Dam hydroelectric power.
Cost Comparison
| Item | Paraguay | USA | Savings |
|---|---|---|---|
| 1BR Apartment | $450 | $1,700 | 74% |
| Meal at restaurant | $5 | $18 | 72% |
| Monthly transit pass | $25 | $100 | 75% |
| Basic utilities | $50 | $150 | 67% |
| Internet (50 Mbps) | $35 | $65 | 46% |
Remote Worker Economics
For digital nomads earning $2,000-5,000/month from abroad:
- 0% tax on that foreign income (territorial system)
- Live comfortably on $1,000-1,500/month
- Save $1,000-3,500/month
- Same lifestyle would cost $4,000-6,000/month in the US
Initial Setup Costs
Budget $3,000-4,000 for initial setup:
- Security deposit (1-2 months rent): $500-1,000
- Furniture (if unfurnished): $1,000-2,000
- Appliances: $500-1,000
- Residency application costs: $400-600
- Initial groceries and supplies: $300-500
Pro Tips
- •Rent in local currency (Guarani) to avoid exchange rate fluctuations
- •Shop at local markets for produce - much cheaper than supermarkets
- •Electricity is cheap - air conditioning is affordable to run
- •Negotiate rent for longer-term leases - 6-12 month discounts common
- •Joining the local expat community can help find deals and recommendations
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