Cost of Living in Paraguay - What the YouTube Videos Don't Show You

Paraguay consistently ranks as one of the most affordable countries in South America. That part is true. A comfortable lifestyle in Asuncion costs a fraction of what you'd spend in Panama City, Buenos Aires, or Santiago.

Here are the real numbers.

The Budget That Actually Works

Rough monthly costs for a single person in Asuncion, living comfortably but not extravagantly:

These numbers shift outside Asuncion. Encarnacion is slightly cheaper. Ciudad del Este varies.

A couple can live comfortably on $2,500-3,500 per month. These numbers assume a comfortable lifestyle, not backpacker minimalism - but also not luxury.

Where the Numbers Come From

A quality steak dinner at a nice restaurant in Asuncion costs $8-15 USD. At a neighborhood parrilla, even less. Street food and empanadas run $1-3. A full lunch menu at a local restaurant is $4-7.

Fiber internet at 100+ Mbps runs $25-45 per month and is widely available in urban areas. Mobile plans are $15-30. Electricity costs swing significantly depending on AC usage - expect higher bills from November through March when it's genuinely hot.

Used cars are relatively affordable. A reliable sedan runs $8,000-15,000. Gas prices are lower than most of Latin America. If you prefer ride-hailing, Bolt and MUV rides across the city cost a few dollars.

The Part Nobody Talks About

Livin' the dream. That's what they all say when they arrive. Here's where that dream meets the spreadsheet.

The numbers above assume you're willing to live something close to a local standard. Eat where locals eat. Shop at local markets. Use the neighborhood pharmacy. Take the bus sometimes.

That budget works. And it's real.

But most Western expats do not actually want to live like a Paraguayan. They respect the culture, they appreciate the warmth of the people, they love the food from the street vendors - but they don't want the power outages, the intermittent water pressure, or the neighborhood with unpaved roads. They don't want to navigate a healthcare system in a language they're still learning.

There's nothing wrong with that preference. But you need to be honest with yourself about it, because it is the single biggest factor that determines your actual cost of living abroad.

The moment you decide you want the Western standard, your budget stops being compared to local wages and starts being compared to what that standard actually costs to deliver in a country where most of those goods and services are imported.

The $3 Lunch vs. The $15 Import

The things that are genuinely cheaper in Paraguay are tied to local labor and local markets: rent (usually), domestic help, fresh local produce, street food, basic medical visits. Everything else either costs the same or costs more, because it has to be imported.

That block of imported cheddar costs two to three times what you'd pay in Montreal or Minneapolis. International schools run $400-670 per month at the American School of Asuncion, with a one-time entrance fee of $7,500-9,500. Bilingual private schools are more reasonable at $200-400 per month. Good private health insurance is $100-300 depending on coverage.

Premium imported goods, electronics, furniture - all carry import duties that push prices above what you'd pay in the US, Canada, or Europe.

The Gentrification Problem

When a wave of foreign residents arrives carrying hard currency and Western expectations, prices move. Not just for the foreigners. For everyone.

A landlord who was renting a two-bedroom apartment to a local family for $300 per month discovers that a remote worker from Berlin will pay $800 for the same unit. The corner restaurant that served a full lunch for $2.50 notices that expats will pay $8 for the same plate with better presentation. The neighborhood bodega starts stocking imported goods because the new residents want them.

This is already generating serious pushback in cities like Mexico City, Medellin, and Lisbon. Paraguay hasn't hit that inflection point yet - Asuncion's expat community is still small and growing slowly. But if your entire financial plan depends on being the beneficiary of a price gap between what you earn and what locals earn, you're building on a foundation that erodes over time.

The person who thought they'd live on $2,000 a month quietly ends up spending $3,500 and wondering where it all went.

Who Actually Saves Money

The people who genuinely reduce their cost of living abroad share a few characteristics.

They adapt. They learn to cook with local ingredients instead of hunting for imported substitutes. They eat where locals eat, not where expats congregate. They find the local gym, not the CrossFit box marketed to foreigners. They learn the language well enough to negotiate local rates instead of paying the gringo premium.

They're honest about tradeoffs. They accept that their apartment might not have central heating or a dishwasher. They understand that "good enough" medical care at a local clinic costs a tenth of what a private international hospital charges.

They do the math before they move, not after. They research actual costs in their target city, not national averages from a website that hasn't been updated since 2022.

The Real Estate Question

Property prices are low by international standards. New developments in decent Asuncion neighborhoods start around $55,000-75,000 USD. Rental yields can be attractive. But this is a developing market - don't expect the liquidity or legal protections of mature real estate markets. Due diligence matters more here than in countries with established property law enforcement.