Cost of Living in Asunción for Expats in 2026: What Paraguay Really Costs

PARAGUAY · EXPAT GUIDE

Paraguay sells itself on low costs and low taxes. Both are real. The budget that follows is the one foreigners actually spend, not the local one.

The cost of living in Asunción is genuinely low. The figures below are the ones foreigners pay, not the national average, and most were refreshed in August and September 2026.

The exchange rate used throughout is about 6,015 guaranies to the dollar. That is the mid-point of the central bank’s reference quote for Thursday 11 September 2026.

What Rent Actually Costs

A one-bedroom in the centre averages 3.65 million guaranies a month, about US$606. Outside the centre it is 2.21 million, roughly US$367.

A three-bedroom runs 6.13 million in the centre, some US$1,019, and 3.73 million outside it, about US$620.

Listings by neighbourhood are higher at the top end. Villa Morra and Manorá one-bedrooms run 4.5 to 6 million guaranies, US$748 to US$998, and three-bedroom houses reach 20 million, roughly US$3,325.

Rents are legally payable in either currency. Most are paid in guaranies, though premium landlords quote in dollars, so pin the currency in the contract.

Where Foreigners Live

Villa Morra is the default expat hub, walkable and full of restaurants. Carmelitas next door is louder and newer.

Recoleta is calm and residential. Las Lomas is gated, embassy-heavy and the most expensive.

Las Mercedes is the emerging option with cafes and older houses. Los Laureles and San Jorge are quiet and mid-priced.

Downtown is colonial, cheap and gritty. Very few foreigners stay there long.

Bills, Food and Getting Around

Utilities for an 85 square metre flat run about 291,000 guaranies, roughly US$48. Internet above 60 megabits is 129,000, some US$21, and a 10 gigabyte mobile plan is 100,000, about US$17.

A cheap restaurant meal is 42,500 guaranies, about US$7. Dinner for two at a mid-range place is 250,000, roughly US$42.

A draught beer is 12,000 guaranies and a cappuccino 19,500, some US$2 and US$3. Beef is excellent and cheap.

City buses cost 2,300 guaranies, about US$0.38, or 3,400 with air conditioning, some US$0.57. Both fares are heavily subsidised.

You Will Probably Need a Car

Buses are slow, irregular and badly aligned with the Villa Morra to Las Lomas axis where foreigners live. Bolt and Uber both operate and fill the gap.

Used, reliable cars run US$8,000 to US$15,000. Most foreign residents buy one within the first year.

Health Cover

Local prepaid plans cost around US$50 a month for consultations, diagnostics and limited hospital cover. International policies run US$150 to US$300.

Public facilities are open to anyone with valid identification, including temporary residents and even tourists. Almost every foreign resident still goes private.

The Tax Question, Answered Properly

Paraguay taxes only Paraguayan-source income. That is article 6 of the 2019 tax modernisation law, not an incentive scheme that can be withdrawn.

Foreign income is taxed at zero. Personal income tax on local earnings runs 8 to 10 percent, corporate tax is 10 percent, and value-added tax is 10 percent.

The caveat matters. Work performed inside Paraguay can count as Paraguayan-source even when every client is abroad.

The outcome turns on contracts and documentation. Get both right before you assume a zero rate.

Bank secrecy for tax purposes was abolished in 2020. Automatic exchange of account information begins on 2026 data, so the low rate is real and the opacity is not.

The Three Things That Break the Cheap Story

First, condominium fees. In the buildings foreigners want they run 300,000 to 1.5 million guaranies a month, US$50 to US$249.

No published rent figure includes them. Ask before you sign.

Second, imported groceries. Imported cheese costs two to three times the North American price.

Electronics and furniture carry duties that often push them above North American prices too. Local food is cheap; anything shipped in is not.

Third, schools. The American School of Asunción runs US$400 to US$670 a month plus a one-off entrance fee of US$7,500 to US$9,500.

There is also a seasonal squeeze. Electricity bills spike from November to March on air-conditioning load, in a city where summer is punishing.

What Changed This Year

The minimum wage rose five percent on 1 July 2026 to 3,044,000 guaranies a month, about US$506. Inflation is running at 2.4 percent a year, which is low by any regional standard.

The state power utility has announced a gradual tariff increase starting in 2026, hitting high-consumption customers first. Percentages had not been published when this was written.

The guarani has been one of the steadiest currencies in the region. It has also appreciated, which means a dollar income buys less here than the older guides suggest.

More: Latin America news in English, every day from The Rio Times.

Frequently Asked Questions

What is the cost of living for a single person in Asunción?

About US$950 to US$1,300 a month modestly, and US$1,650 to US$2,600 comfortably, rent included.

What does a one-bedroom flat cost?

About 3.65 million guaranies, roughly US$606, in the centre, and 2.21 million, some US$367, outside it.

Is foreign income really untaxed?

Yes. Paraguay taxes only Paraguayan-source income under article 6 of its 2019 tax law. Work performed inside the country can still be treated as local-source.

Do I need a car?

Most foreign residents buy one. Buses do not serve the neighbourhoods expats live in well, though Bolt and Uber both operate.

What is the exchange rate?

About 6,015 guaranies to the US dollar, the Banco Central del Paraguay reference quote for 11 September 2026.

Sources: Numbeo, Banco Central del Paraguay, UbicaProp, ABC Color, MTESS, Plan B Expat, MyLatinLife.