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Quality of life index out of 100
Paraguay
Guaraní
Paraguay
Paraguay is a landlocked country located in the heart of South America, bordered by Brazil, Argentina, and Bolivia. Its unique geographical position has significantly shaped its cultural and econom…
What it's like to live in Paraguay· AI overview
Paraguay is a landlocked country located in the heart of South America, bordered by Brazil, Argentina, and Bolivia. Its unique geographical position has significantly shaped its cultural and economic development. The country is divided into two disti...
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With a safety index of 42/100, Paraguay offers moderate safety conditions for expats and their families.
Paraguay offers visa-free entry for citizens of numerous countries, including the United States, Canada, Australia, and most EU nations, for tourism and business purposes.[2][5] U.S. citizens and other visa-exempt travelers can stay for up to 90 days without obtaining a visa in advance, provided they hold a valid passport with at least 6 months of validity remaining from their arrival date.[2][5][7] Travelers should carry at least 2 blank passport pages for entry stamps and be prepared to present proof of...
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Paraguay shows a purchasing power index of 56/100, indicating moderate economic conditions for expats.
GDP
$41.72B
HDI
0.7
Quality of Life
53/100
+10 vs NYC
Purchasing Power
23/100
-19 vs NYC
Understanding the economic landscape is essential for evaluating living costs and opportunities in Paraguay. This comprehensive overview covers key financial indicators including cost of living, housing markets, income levels, and fiscal policies that shape daily life and long-term financial planning.
Cost of Living Index
Very affordable with CPI of 28.3. Groceries index at 27.8 and restaurant prices at 26.3 are significantly lower than major global cities, making Paraguay one of the most cost-effective destinations.
Housing Market
Property prices average 14.1 years of household income, indicating expensive housing relative to local earnings. Rent index of 9.5 is more affordable, but property ownership requires substantial savings.
Average Income Levels
Purchasing power index of 51.5 indicates significantly low income levels compared to developed nations. GDP per capita projected to reach $9,000 by 2027, reflecting limited earning capacity for most residents.
Tax System
Paraguay employs a progressive income tax system with rates up to 19% for higher earners. VAT operates at standard rates, and the system maintains reasonable clarity for taxpayers, though enforcement varies.
Business Environment
Paraguay demonstrates strong economic growth of 6% in 2025 with projected 4.2% growth in 2026, driven by industrial expansion and domestic investment. Growing sectors include pulp, biofuels, and green hydrogen, supporting entrepreneurial opportunities.
Social Security
Paraguay maintains basic social programs including healthcare and pension systems. Poverty reduction efforts show progress (from 22.8% in 2023 to 20.5% in 2024), though coverage breadth and benefit adequacy remain moderate compared to developed nations.
Tax information is currently being researched.
Climate
Paraguay features a diverse climate spanning from humid subtropical conditions in the eastern Paranaense region to tropical and semi-arid climates in the western Chaco. The eastern region experiences warm, humid weather year-round with abundant rainfall, while the western region is drier with more pronounced seasonal variations.
Humid subtropical, Tropical, Semi-arid
25–28°C
12–17°C
2800+ hrs/yr
2 distinct climate regions — see full guide for details
Read full guideDemographics in Paraguay
Ethnic Composition
Currently under research
Long-term Expat Guide in Paraguay
Gallery for Paraguay
20 photosEconomic overview
Very affordable with CPI of 28. Property prices average 14. Purchasing power index of 51.
Economy detailPurchasing power
Purchasing power index of 51. Very affordable with CPI of 28.
Compare purchasing powerWork & Business
- Employment rate: 94.6%
- Salary range: PYG 18,000,000–PYG 45,000,000/year
- Startup ecosystem: 5.5/10
- Business registration: 2-4 weeks, PYG 0 min capital
- Top industries: Agriculture & Agribusiness, Renewable Energy & Hydropower, Manufacturing & Processing, Logistics & Trade, Construction
- Remote work legally permitted with no specific restrictive legislation. Employer-employee agreeme…
Healthcare in Paraguay
Retirement & benefits
Paraguay offers temporary residency for retirees with monthly income equivalent to 100 minimum wages (approximately USD 1,300). Social insurance system with contributory old-age pensions.
Unlock PremiumTransportation
Paraguay's transportation landscape reflects a developing nation transitioning toward improved connectivity. As a landlocked country, it relies heavily on road networks and regional logistics infrastructure to connect with neighboring markets. The country faces significant infrastructure challenges, with much of its inland road network unpaved, though the government is actively investing in upgrades and the ambitious Corredor Bioceanico project.
Transportation guideLegal & Administrative
Legal & Administrative in Paraguay
Environment & Sustainability in Paraguay
Paraguay operates as a presidential republic with a bicameral legislature, currently led by President Santiago Peña Palacios of the Colorado Party since August 2023. The country faces significant governance challenges including widespread corruption, organized crime linked to drug trafficking, and threats to judicial independence, while recent reforms have focused on campaign finance transparency and national security coordination.
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Data Source: Safety, crime, and quality metrics are sourced from Numbeo, a crowd-sourced global database of reported data.
All scores are relative comparisons on a 0-100 scale, where 50 = global average. Higher scores mean better than average, lower scores mean worse than average.






Social Integration
Limited information available on social integration in Paraguay from provided sources. Paraguay has a population of approximately 7 million, predominantly Roman Catholic (89%), with growing Brazilian expat communities (44,000 residency applications in 2025). Urban population is 63.9%, with high social media penetration (66.1%).
Social integration guideEnvironment & Sustainability
Paraguay features a subtropical climate with significant natural resources including vast forests and hydroelectric power from Itaipu Dam. Environmental challenges include ongoing deforestation in regions like Asunción and the Chaco, though forest sector NDC targets are supported by international initiatives. Water resource management has improved via the 2023 Water Information System.
Environment guide