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Living in Paraguay: the ultimate expat guide

Living in Paraguay: the ultimate expat guide

Everything you need to know for a successful life in Paraguay.

Paraguay remains one of South America's most overlooked expat destinations, and that's precisely what makes it attractive. This landlocked country of 7 million people sits at the heart of the continent, bordered by Brazil, Argentina, and Bolivia. With a population density of just 18 people per km² and a median age of 27 years, Paraguay offers space, opportunity, and a young, dynamic economy.

The country hosts approximately 400,000 Brazilian expats, making them the largest foreign community, alongside established German, Italian, Russian, Japanese, and Korean populations. The capital ´¡²õ³Ü²Ô³¦¾±Ã³²Ô and its metropolitan area account for 3.6 million residents, concentrating most of the country's economic activity and services.

Paraguay stands out linguistically in Latin America: while Spanish is the official language, ³Ò³Ü²¹°ù²¹²Ôí is spoken by 34% of the population, and 46% are bilingual in both languages. This indigenous language remains alive in daily life. The local currency is the ³Ò³Ü²¹°ù²¹²Ôí (PYG), trading at approximately PYG 7,300 to USD 1.

5 Compelling Reasons to Move to Paraguay

  1. Territorial taxation system: Zero tax on foreign-sourced income, maximum 10% on local earnings only. No inheritance tax, gift tax, or wealth tax whatsoever.
  2. Extremely low cost of living: 60.7% cheaper than Germany, 64.6% cheaper than the United States, allowing significantly higher purchasing power on modest income.
  3. Straightforward residency process: Minimum USD 70,000 investment spread over 10 years for permanent residency, or simple USD 4,500 refundable bank deposit for qualifying nationalities.
  4. Economic stability: Average 4% annual GDP growth, inflation around 4%, public debt at healthy 33% of GDP.
  5. Pleasant lifestyle: Year-round subtropical climate, welcoming population, developing infrastructure, and notably low social tensions.

Paraguay's economy centers on agro-industry and hydroelectric power. The country ranks as the world's largest electricity exporter thanks to the Itaipu Dam, supplying 70% of its output to neighboring Brazil and Argentina.

Here's a snapshot of key country metrics:


Indicator

Value

Total Population

7.01 million (2025)

Land Area

406,752 km²

Capital City

´¡²õ³Ü²Ô³¦¾±Ã³²Ô (3.6M metro area)

GDP per Capita

USD 6,289 (2024)

GDP Growth

4% annual average

Unemployment Rate

5.6% (Q1 2025)

Annual Inflation

~4%

Official Languages

Spanish and ³Ò³Ü²¹°ù²¹²Ôí

Urban Population

68%

Sources: , ,

Key facts

Population6.9 million
Expats160,000
Top nationalitiesBrazilian, Argentine, German, Korean, Taiwanese
LanguagesSpanish, Guarani
Monthly cost of living
1 person$900
Family of 4$2,500
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We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this content, please contact us.
Julien Faliu
About the author

I fell in love with words at an early age After a break to focus on my studies, I rediscovered the joy of writing while keeping a blog during my years between London and Madrid. This passion for storytelling and for exploring new cultures naturally inspired me to create ´ó¿§¸£ÀûÓ°Ôº, a space for my own reflections as well as for anyone wishing to share their experiences and journeys abroad.

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