Best Places to Live in Paraguay for Expats 2026, Ranked

Expats · Paraguay

For most American expats, the best place to live in Paraguay is Asunción, the capital, followed by the southern river city of Encarnación and the lakeside town of San Bernardino. Ciudad del Este is the trade hub, but it sits in a department the US State Department singles out for crime. Paraguay itself is rated Level 1, “exercise normal precautions”, the lowest warning on the US scale.

The Short Answer: Asunción First, Encarnación Second

Asunción ranks first because it holds the main private hospitals, the best-supplied shops, the international schools and the airport that most newcomers use. It is also the easiest base for dealing with the migration office and banks in person.

Encarnación ranks second for people who want a quieter river town near the Argentine border. San Bernardino suits lake-side weekends, and Ciudad del Este suits traders, but neither is a typical first base.

How We Ranked the Places, and What Washington Says

We scored each place on four things: the official safety picture, access to healthcare and schools, how easy it is to arrive and settle, and how far it sits from the border areas flagged for crime. Where official data stops at the national level, we say so instead of inventing city figures.

The US State Department rates Paraguay Level 1 of 4, “exercise normal precautions”, in an advisory issued on 19 August 2026. It advises extra caution in the departments of Alto Paraná, Amambay, Canindeyú, Concepción and San Pedro, where criminal groups are active along the Brazilian border and police presence is low in some areas.

The advisory also bars US government employees from using municipal buses because of the risk of robbery and assault. Paraguay’s police and statistics office data put 2025 homicides at 391 on a population of about 6.4 million, a rate of 6.1 per 100,000, according to National Police and statistics office figures reported by La Nación.

1. Asunción: Villa Morra and the Modern Districts

Asunción is the capital and the country’s main city, on the east bank of the Paraguay River. It is not among the departments on the State Department’s crime list.

Newcomers who want modern flats and malls usually look at Villa Morra and the districts around it. Others choose quieter residential streets farther out and commute by car.

The capital is also where Paraguay’s central bank sits and where most professional services are concentrated. That matters for anyone who needs an accountant, a notary or an English-speaking doctor.

2. Encarnación

Encarnación is a river city in the south, facing Posadas in Argentina across the Paraná. It lies in Itapúa department, which is not on the State Department’s list of departments for extra caution.

The city has a developed waterfront and is popular with retirees who want a calmer pace than Asunción. The trade-off is fewer specialist doctors, so serious treatment often means a trip to the capital.

3. San Bernardino

San Bernardino sits on Lake Ypacaraí about 50 kilometres from Asunción and has long been the capital’s summer retreat. It suits people who want lake views and a short drive to city services.

Life there is seasonal, with weekend crowds in summer and a much quieter winter. Remote workers should test internet quality in a rented home before they commit.

4. Ciudad del Este

Ciudad del Este is a major trade hub and sits at the Brazilian border opposite Foz do Iguaçu. It is the capital of Alto Paraná, one of the five departments named in the State Department advisory.

It makes sense for people whose business depends on cross-border trade or who want to be near Brazil. For most newcomers it is a place to visit for work, not to settle first.

Language, Money and Daily Life

Spanish and Guaraní are Paraguay’s two official languages, and Spanish is what you need in offices, clinics and shops.

The currency is the guaraní. A few months of Spanish lessons before arrival make bank, migration and utility appointments easier.

Entry, Residency and Tax: What the Rules Say

Paraguay’s migration directorate signed Resolution 407 on 28 May 2026, and it applies to residency files filed since 6 July 2026. It makes all information in an application a sworn statement and adds a digital system that cross-checks documents.

Applications have surged: La Política Online reports 47,687 residency applications in 2025, a 63% rise on 2024. False statements can be investigated as false declaration or use of inauthentic documents, with penalties of up to five years in prison or a fine.

Paraguay generally taxes income earned inside the country rather than income earned abroad, but the rules for residents are technical. Our explainer on Paraguay versus Uruguay sets out the tax contrast, and anyone planning a move should take local advice.

What It Means for You

For a first stay, renting a furnished flat in Asunción for a few months gives the most information at the lowest risk. You can then judge whether Encarnación or San Bernardino suits your routine better.

Budget in dollars but expect to pay many local costs in guaraníes, at about 5,741 guaraníes per US$1 (RT market data, 20 October). Check your health insurance covers treatment in Paraguay and medical transport to Asunción.

What to Watch

Paraguay’s central bank decides on interest rates on 23 October, with the policy rate at 5.5% and no change expected, according to the RT economic calendar. The October inflation reading follows on 3 November, after 1.7% in September.

What Is Not Known

Paraguay publishes no official rent index for expat districts, and guides quote very different prices, so we give none. Crime data is available by department rather than neighbourhood, so city comparisons rest on the advisory and on general descriptions.

Frequently Asked Questions

What is the best place to live in Paraguay for expats?

Asunción is the most practical base for most foreigners because it combines private hospitals, schools, shops and the main airport. Encarnación is a calmer alternative in the south.

Is Paraguay safe for American expats?

The US State Department rates Paraguay Level 1 of 4, “exercise normal precautions”, and advises extra caution in five departments near the Brazilian border and in the north. The 2025 homicide rate was 6.1 per 100,000 people.

Is Ciudad del Este a good place to live?

It is a major trade hub, but it is in Alto Paraná, one of the five departments the State Department names for extra caution. Most newcomers choose Asunción or Encarnación first.

What changed for residency applications in 2026?

The migration directorate’s Resolution 407, signed on 28 May 2026 and applied to files filed since 6 July 2026, makes all information in an application a sworn statement. Digital cross-checks were added, and false statements can bring up to five years in prison or a fine.

Is San Bernardino good for remote workers?

It offers a lake setting about 50 kilometres from Asunción, but life is seasonal. Test the internet connection in your rental before you sign a long lease.

Is it safe to use buses in Paraguay?

The State Department prohibits US government employees from using municipal buses because of the risk of robbery and assault. Most newcomers use their own car or ride-hailing apps.

Sources

• US State Department, Paraguay travel advisory
• La Nación Paraguay, homicide rate 2025
• La Política Online, Migraciones tightens residency controls

Read next: Uruguay versus Paraguay for expats, Paraguay’s residency boom and the key players in the Paraguayan economy. More in our Paraguay hub.