Paraguay is increasingly gaining attention among expats and people seeking a lower cost of living, favorable tax rules, and more relaxed bureaucracy. In this article, we’ll cover the major aspects you must understand if you’re considering migrating to Paraguay: visa & residency, salaries, benefits, rent, cost of living, lifestyle, and tips for families and students.

1. Visa & Residency

To live and work legally in Paraguay, you’ll need a proper visa and residence permit.

Temporary Settlement / Residence Permit

One common option is the Temporary Settlement (Residencia Temporaria / Radicación Temporaria) which is valid typically for 2 years and renewable. After a period, you may apply for permanent residency (Radicación Permanente). expatmoney.com+1

Requirements generally include:

• Valid passport and entry stamp
• Clean criminal record certificate from your origin country
• Birth certificate
• Proof of economic means (some document showing ability to support yourself)
• Certificate of good health
• Translated and legalized (apostilled) documents expatmoney.com

After obtaining a temporary permit, you’ll typically need to visit Paraguay and get a local ID card (cédula) through immigration authorities. Foyer Global Health+1

Work Visa / Permit

If you intend to work as an employee, you must have the proper work visa or the employer must sponsor the permit. Paraguay’s immigration and labor laws require that foreign nationals hold a valid visa / permit before engaging in paid employment.

It is not allowed to work on just a tourist visa. The work visa process often requires a job offer, professional credentials, health and police checks, and translation/legalization of documents.

Some countries within MERCOSUR may have simplified processes under regional agreements.

Citizenship & Permanent Residency

Once you hold permanent residency, after several years (often around 3 years) you may apply for Paraguayan citizenship. Some programs also allow residency by investment. Paraguay is known for having one of the more accessible residency systems in Latin America.

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2. Salaries & Income

Salaries in Paraguay are relatively low compared to developed countries, but adjusted to the local cost of living.

• The average monthly salary is about 5,000,000 PYG, which equates to approx USD $626 (depending on exchange rates)
• Other sources put average salaries between USD $350 – $420 (for more basic or unskilled roles)
• In many sectors, formal employment is less frequent; many work in informal or semi-formal jobs.
• For specialized, technical, or managerial roles, salaries can rise considerably above these averages, especially in international companies.

Because many expats bring income from abroad (remote work, freelancing, etc.), they often manage with less local salary dependence.

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3. Cost of Living & Rent

One of Paraguay’s biggest selling points is its low cost of living.

Basic Cost Estimates

• For a single person (excluding rent) monthly expenses such as food, utilities, transport, etc., average around USD $450
• With rent included, a comfortable budget for one person ranges from USD $750 to $900 per month
• For a family of four, excluding rent, expect expenses around USD $1,600, and including rent about USD $2,200 to $2,500
• More luxurious living or private schools, private health care, etc., may push costs to USD $3,500–$4,500+ expatmoney.com

Rent & Housing

• A one-bedroom apartment in city center (Asunción, for example) may cost USD $285–$390
• Outside city center, rent can drop to USD $185 (or lower) for smaller or more modest apartments.
• Utilities (electricity, water, gas) for a one-bedroom may cost around USD $45–$85 or more depending on usage and location. strategicasa.com+1
• Paraguay has a VAT / goods & services tax rate of 10% reframed.it
• A key advantage: Paraguay does not tax foreign-sourced income (income earned abroad).

Inflation & Costs

• Paraguay is subject to inflation, especially in imported goods.
• Some common goods are inexpensive: local food, produce, meats, etc.

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4. Benefits, Taxes, & Social Services

Taxation & Foreign Income

One of Paraguay’s biggest draws is its territorial tax system: foreign income is generally not taxed. reframed.it
This means if you work remotely for a foreign company, your remote earnings may not be taxed in Paraguay.
Corporate tax is low (approx 10%) and there are tax incentives for free trade zones and export-oriented businesses.

Social Services & Health

• Paraguay has a public health system, but many expats and wealthier residents opt for private health insurance / private hospitals due to quality differences. Foyer Global Health+2Foyer Global Health+2
• The public system, when accessible, is cheaper but may have longer wait times or lower standards in rural areas.
• Social security contributions and benefits (like pensions, unemployment) exist but are less generous than in developed countries; eligibility usually requires formal employment and contributions.
• Public schools are available; private/international schools cost more.

Benefits & Subsidies

• There are fewer widespread subsidies compared to developed nations.
• Some incentives or grants may exist for investors or business creation.
• Low cost of living and taxation is in itself part of the benefit for many migrants.

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5. Lifestyle, Culture & Practical Tips

Pace & Culture

• Paraguay’s pace of life is generally slower and more relaxed compared to major global cities.
• Spanish (Castilian) and Guaraní are official languages — learning Spanish is highly recommended for integration.
• Expats often report warm hospitality, friendliness, and a welcoming environment.
• Rural areas are more modest in infrastructure; urban areas have better services.

Infrastructure & Transport

• Major cities have basic public transport, but in many places, you will rely more on buses, private transport, or ride-shares.
• Roads in urban centers are decent; outside may be less so, especially in rainy season.
• Internet availability is decent in cities, though speeds and reliability can vary.

For Families & Students

• Cost of schooling in public schools is modest; private or international schools are more expensive.
• Housing that suits a family (3–4 bedrooms) is available, though larger homes may cost more.
• Many families live comfortable lives on modest budgets by leveraging local produce and local services.
• Students may find cheaper rents, possibly shared housing, and lower everyday costs than in many countries.

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6. Example Monthly Budget (in USD) for a Family of 4

Here’s a rough sample budget for a family with moderate lifestyle:

Expense Category	Approx USD / Month
Rent (3-4 bedrooms, moderate area)	$500 – $800
Utilities + Internet	$80 – $150
Food & groceries	$300 – $500
Transportation	$30 – $100
Health / insurance / medical	$50 – $150
Education & school costs	Varies (private school might add $100–$300)
Miscellaneous (clothing, leisure)	$50 – $150
Total Estimate	≈ $1,100 – $1,900+

If you live more modestly or outside big cities, you might reduce that. Some guides suggest that $2,500/month gives a comfortable lifestyle for a family, including rent, in Paraguay. Nomad Tax

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7. Pros and Challenges

Pros

• Very low cost of living compared to most Western nations
• Favorable tax treatment for foreign income
• Affordable housing and utilities
• Potential for relaxed, peaceful lifestyle away from crowded big cities
• Simple and accessible path to residency
• Good climate, natural beauty, open spaces

Challenges

• Low local wages for many local jobs
• Bureaucracy when dealing with immigration, permits, setting up business
• Gaps in infrastructure in rural / remote areas
• Language barrier (Spanish/Guaraní)
• Variable quality of public health services outside urban centers
• Safety concerns in specific neighborhoods, need local research

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