Looking for the best country to retire in 2025? Discover why more and more international retirees are choosing Paraguay—a tax-friendly, low-cost, and underrated destination in the heart of South America. Whether you’re planning to retire early or seeking a peaceful lifestyle for your golden years, retiring in Paraguay offers a unique combination of affordability, safety, and freedom that’s hard to find elsewhere.
With no wealth tax, no inheritance tax, and one of the lowest costs of living in Latin America, Paraguay is emerging as a top retirement destination for expats from the U.S., Canada, and Europe. The process to obtain residency in Paraguay is straightforward, with minimal bureaucracy and no requirement to purchase property. Retirees benefit from a warm climate, rich cultural heritage, and a growing expat community—especially in Asunción, the capital city, where modern conveniences meet colonial charm.
In this comprehensive 2025 guide, we’ll walk you through everything you need to know about retiring in Paraguay—from residency visa requirements, real estate prices, and healthcare options, to monthly budget examples, expat safety tips, and the best places to live in Paraguay. Whether you’re planning to live on $1,200 a month or seeking luxury for less, this guide will help you make an informed, confident decision about your retirement abroad.
Cost of Living in Paraguay in 2025: Affordable Comfort for Expats
One of the most compelling reasons why retirees and digital nomads are choosing Paraguay in 2025 is its exceptionally low cost of living—without compromising quality of life. Compared to North America or Western Europe, daily expenses in Paraguay can be 40–70% lower, depending on your lifestyle and location.
Housing Costs
Housing is where most retirees experience the biggest savings. Whether you’re renting or buying, real estate in Paraguayis still significantly undervalued.
- Renting a 1-bedroom apartment in Asunción: $350–$600/month
- Renting a 2-bedroom apartment in suburbs: $250–$400/month
- Buying a new apartment in Asunción: $1,500–$2,100 per m² (compared to $3,000+ in Medellín or $5,000+ in Panama City)
Expats looking for long-term stays can often negotiate lower rent or find newly built pre-construction units with flexible payment plans. Outside Asunción, prices drop even further—ideal for those preferring a quieter, rural lifestyle.
Groceries and Dining Out
Local food is fresh, affordable, and widely available. Paraguayans enjoy meat-heavy meals, fresh fruits, and vegetables, and many expats report spending surprisingly little on food.
- Monthly groceries for two people: $250–$350
- Meal at a mid-range restaurant: $15–$25 for two people
- Coffee at a café: $1.50–$2.00
- Local beer (0.5L bottle): $1.00–$1.50
Supermarkets like Superseis, Casa Rica, or Stock offer both local and imported goods, but prices are significantly lower than in neighboring countries like Argentina or Brazil.
Transportation
Public transportation is basic but very cheap. Most expats opt to use ride-hailing apps or buy a car for convenience.
- Bus ticket (urban route): $0.50
- Taxi ride across the city: $5–$8
- Fuel (per liter): ~$1.15
- Used car (Toyota or Hyundai sedan): $8,000–$12,000
Importing a car is also a popular option among expats—especially from the U.S.—due to favorable import duties compared to neighboring countries.
Healthcare
Healthcare in Paraguay is both affordable and accessible, especially in private clinics in Asunción. While public hospitals exist, most expats prefer private services due to shorter wait times and better quality.
- General consultation in a private clinic: $20–$40
- Dental cleaning: $25–$50
- Monthly private insurance premium: $50–$120, depending on age and coverage
Some of the best-known private hospitals include Hospital Universitario San Lorenzo, Migone Battilana, and Hospital La Costa.
🧾 Monthly Budget Breakdown for Retirees (Single Person)
| Category | Cost (USD) |
|---|---|
| Rent (1BR, furnished) | $400 |
| Groceries | $250 |
| Dining Out (3–5x/week) | $150 |
| Utilities + Internet | $100 |
| Health Insurance | $80 |
| Transportation | $60 |
| Entertainment | $60 |
| Total (Est.) | $1,100–$1,300/month |
This budget provides a comfortable middle-class lifestyle, with room for savings or occasional luxury splurges. Couples can comfortably live on $1,500–$1,800/month.
1️⃣ Asunción – The Capital with Comfort and Convenience
Best for: Active retirees who want urban living with modern amenities.
Asunción is the cultural, economic, and political heart of Paraguay. It offers the best healthcare, international schools, shopping malls, and restaurants. The cost of living is still low by global standards, but slightly higher than rural areas.
- ✅ Access to private hospitals and clinics
- ✅ Vibrant expat and business community
- ✅ International airport and high-speed internet
- ✅ Great real estate investment opportunities
Average rent for 1-bedroom apartment: $350–$600/month
Vibe: Colonial charm meets Latin energy
2️⃣ San Bernardino – Lake Living with a Holiday Feel
Best for: Nature lovers, couples, and those seeking peace and quiet near water.
Located on the shores of Lake Ypacaraí, just 45 minutes from Asunción, San Bernardino is a favorite weekend escape for locals and a growing hub for retirees who enjoy a relaxed, lakeside lifestyle.
- ✅ Scenic views and cooler climate
- ✅ Boating, kayaking, and outdoor dining
- ✅ Gated communities and boutique developments
- ✅ Excellent for part-time or seasonal retirement
Average rent for house with garden: $600–$800/month
Vibe: Laid-back, semi-rural elegance
3️⃣ Luque – Suburban Living with Access to the City
Best for: Budget-conscious retirees who still want to be close to Asunción.
Luque is home to Paraguay’s international airport and growing residential developments. It’s popular among locals and newcomers alike for its affordability and accessibility.
- ✅ Affordable property prices
- ✅ Good infrastructure and safety
- ✅ Local markets and healthcare access
- ✅ Easy commute to central Asunción
Average rent for 2BR apartment: $300–$450/month
Vibe: Calm suburbia with urban access
4️⃣ Encarnación – The “Pearl of the South”
Best for: Retirees who want beaches, culture, and a border-town vibe.
Encarnación, located along the Paraná River and near the Argentine border, is often referred to as the most beautiful city in Paraguay. It features a riverfront boardwalk, clean public beaches, and European-style architecture.
- ✅ Walkable and clean city
- ✅ Mild climate and low humidity
- ✅ Cross-border access to Argentina
- ✅ Strong cultural and community feel
Average rent for central apartment: $300–$500/month
Vibe: Small-city charm with beach-town energy
5️⃣ Areguá – The Artist’s Retreat and Historic Village
Best for: Creative retirees, writers, and those seeking slow living.
A UNESCO Creative City and known for its pottery and art scene, Areguá is a charming colonial town with cobblestone streets and proximity to Lake Ypacaraí. It’s only 40 minutes from Asunción, making it a great mix of heritage and convenience.
- ✅ Artistic community and cultural events
- ✅ Cozy cafes and local artisan markets
- ✅ Very low cost of living
- ✅ Ideal for peaceful retirement or semi-rural life
Average rent for a cottage-style home: $250–$400/month
Vibe: Bohemian and tranquil
Comparison Table: Best Places to Retire in Paraguay (2025)
| City/Town | Lifestyle Type | Avg. Rent (1–2BR) | Healthcare Access | Safety Level | Expat-Friendly | Highlights |
|---|---|---|---|---|---|---|
| Asunción | Urban & Modern | $350–$600 | Excellent | Medium | High | Best hospitals, real estate, shopping |
| San Bernardino | Scenic & Lakeside | $600–$800 (house) | Moderate | High | Medium-High | Lake Ypacaraí, boating, relaxed atmosphere |
| Luque | Suburban & Affordable | $300–$450 | Good | High | Medium | Close to airport, new developments |
| Encarnación | Small City & Riverfront | $300–$500 | Moderate | High | High | Beachfront, walkable, European architecture |
| Areguá | Artistic & Colonial | $250–$400 | Basic-Moderate | Very High | Medium | Cobblestone streets, art scene, quiet living |
Retire as a U.S. Citizen in Paraguay (2025)
For American retirees looking to stretch their retirement dollars while enjoying a relaxed and fulfilling lifestyle, Paraguay is quickly becoming a top choice in Latin America. With its low cost of living, warm climate, and friendly locals, Paraguay offers an ideal escape from the high expenses and fast pace of life in the U.S.
As a U.S. citizen, settling down in Paraguay comes with several key advantages. There’s no taxation on foreign income, meaning Social Security checks, pensions, and investment earnings from abroad are not subject to local taxes. Daily expenses such as housing, healthcare, and groceries are dramatically lower than in North America, making it possible to live well—even on a modest retirement budget.
Beyond affordability, Paraguay is known for its tranquil environment, welcoming expat community, and simple legal structure for long-term stays. Whether you prefer urban living in Asunción, lakeside peace in San Bernardino, or colonial charm in towns like Areguá, you’ll find a lifestyle that fits your retirement vision.
With a growing interest from expats and increasing investment in infrastructure, Paraguay in 2025 presents a unique opportunity to retire in comfort, maintain financial freedom, and experience life at a slower, more meaningful pace.
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