Cost of living in Paraguay
One of the cheapest options In Latin America
The good news is that cost of living in Paraguay is extremely low – although not as low as it used to be, thanks to increased international interest, immigration and investments. It is also the only South American country with no taxes on foreign income, which can lead to further savings down the line.
In Paraguay, ethnic Europeans live in harmony with the country’s indigenous population, making it a safe and pleasant place to settle. It is also considered one of the most affordable destinations to live in Latin America, due in large part to its low average cost of living. Most analyses conducted in the region note that Paraguay’s product prices are among the lowest in the Latin America.
Other typical expenses like electricity, gas, and water are a little higher, and comparable to most European countries. This is because Paraguay is a landlocked country with limited energy resources. Despite these geographical limitations, most foreigners based in Paraguay report that the average life for an immigrant tends to be extremely affordable.
Day-to-day expenses
Paraguay’s currency is the Guarani (PYG), with one ₲ (Guarani) divided into 100 céntimos. Four different and increasingly devalued coins are in circulation in the country – ₲50, ₲100, ₲500, ₲1000 – as well as seven different bank notes: ₲1000, ₲2000, ₲5000, ₲10000, ₲20000, ₲50000, ₲100000. The current exchange rate of the Paraguayan Guarani to the US Dollar is USD$ 1 = 7,100 PYG
Always check banknotes carefully when trading, to reduce the risk of receiving counterfeit money – particularly ₲100000 and ₲50000 banknotes. ATMs are widely available in towns and cities, usually with a daily withdrawal limit of ₲1,500,000. Credit cards are accepted in most hotels and restaurants, but they are rarely accepted outside the major cities where coverage is scarce, and often come with a surcharge. Keep plenty of change and small notes with you as you travel, and you shouldn’t encounter much difficulty paying for goods and services, and receiving cash.
Now that we know how Paraguay’s currency works, let’s look at some of the typical day-to-day expenses you can expect to incur while living here. As we have seen, Paraguay is an extremely affordable place to stay – so let’s explore in detail the cost of living here!
Restaurants
Salaries in Paraguay are low compared to the rest of the region, but many people prefer to spend money at local restaurants nonetheless. This is no doubt due to the low prices of decent meals here, which typically cost the equivalent of just USD$ 1.50. In fact, it’s not uncommon for beer to cost more than the dish it’s accompanying. As an example, ₲20000 will buy you an all-you-can-eat buffet at a nice restaurant, while ₲5000 is enough for a hamburger.
Supermarkets
Food may take up much of the monthly budget, but it is not expensive by any means, even when weighed against local salaries. Purchasing groceries at the supermarket is a good way to make savings, while at local markets, vendors rarely haggle over prices, so there’s no need for you to do so unless you think you are being overcharged. Always ask yourself what the item would cost in your country of origin.
Transportation
One way to save money is to rent accommodation away from the centre of Paraguayan cities – but this will invariably lead to a rise in transportation costs. A monthly bus pass can be acquired for around USD$ 10 in most major cities. Meanwhile, if you prefer to drive, a gallon of gasoline costs around USD$ 1.09.
Rent per month
The average cost of a one-bedroom apartment in the city is twice as high as the minimum monthly wage, which tends to price many Paraguayans out of this market, but is not prohibitively expensive for expats. Meanwhile, apartments outside of city limits typically cost around USD 60 to rent.
Utilities
In Paraguay, utilities such as electricity, heating, water and garbage collection are typically included in the monthly rent, which tends to be high compared to local salaries as a result. The standalone prices of these services are lower than in Europe, and appropriate for the general standard of living here.
Travelling
Costs associated with travelling around the country – including food, transport and accommodation – can vary significantly depending on your standards of comfort and preferred mode of transportation. Here are some indicative costs for each price range:
Budget:
- Hostel bed: ₲80,000
- Fast-food evening meal: ₲25,000
- Economy bus ticket: ₲60,000
Mid-range:
- 3-star hotel room: ₲200,000
- Standard evening meal: ₲80,000
- Standard bus ticket: ₲90,000
High-end:
- 4-star hotel room: ₲350,000
- Top-quality evening meal: ₲150,000
- Car hire: ₲450,000
Sports & leisure
Entertainment is not expensive in Paraguay, with tickets to new releases in the cinema costing around USD$ 5. Fitness clubs and gyms are also unusually cheap to join, especially for residents who continue to earn in foreign currencies.
Clothing and shoes
These are also relatively cheap in Paraguay, especially in comparison with neighbouring countries. Shoppers can expect to find a good pair of jeans or dress for under USD$ 25.
Healthcare
In general, a consultation with a private doctor will cost about USD$ 50 in Paraguay, although this can vary depending on the clinic and location.
Monthly Budget
All told, living simply in Paraguay requires a monthly budget of USD$ 200 or less, which allows for bus rides and the occasional taxi, weekly trips to the local supermarket and grocery stores, and the occasional meal out. Meanwhile, living in relative luxury by employing full-time housekeepers, commuting by car, living in a big house and consuming imported goods can add up to USD$ 350 or more every month.
As we have seen, Paraguay is an affordable country for anyone considering living there, especially when compared to its more famous neighbours such as Argentina and Brazil. Foreigners should also bear in mind that if they are earning income from outside the country, then these earnings are exempt from income tax, making life in Paraguay even cheaper on a yearly basis for outsiders with dual residency.
Get in touch with Strategicasa to find out how to make the move to Paraguay today!