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 economic development. The country is divided into two disti...
Your Paraguay Roadmap
40+ page relocation analysis tailored to your profile.
- Custom Tax & Cost Projection
- District Matching for your Lifestyle
- Vetted Local Partner Directory
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...
Discover Cities in Paraguay
Create your free profile to see personalized match scores.
39% below EU avg
36% below EU avg
21% below EU avg
20% below EU avg
Baselines based on EU averages. Source: Numbeo indices.
Capital
Asunción
Timezone
UTC-04:00
Area
406,752 km²
Population
7,132,530
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.
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.
2 distinct climate regions — see full guide for details
Read full guideLife Expectancy
70.0
Population
7,132,530
Religions
Ethnic Composition
Currently under research
Research in Progress
We're currently analyzing expat perspectives for Paraguay. Check back soon for insights from real experiences!
We're gradually rolling out this feature and continuously improving the insights. The data is based on real expat discussions and will become more comprehensive over time.
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.
Your Paraguay Roadmap
40+ page relocation analysis tailored to your profile.
- Custom Tax & Cost Projection
- District Matching for your Lifestyle
- Vetted Local Partner Directory
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.





