Paraguay
A solid all-round choice. Ranked 13 of 40, strongest on affordability, softest on expat community.
Key facts
Visa & residency
Residencia Temporal under Ley N° 6.984/2022 (temporary residency, convertible to permanent residency); retirees typically qualify via the independent-means / pensionado pathway.
The old MERCOSUR-era permanent-residency rule requiring a lump-sum bank deposit (the ~USD 5,000 SOLES-based deposit) was superseded by Ley N° 6.984/2022. General temporary residency under the current regime does NOT require proof of economic solvency; the official Migraciones requirements list no income or bank-deposit threshold. The application fee is Gs. 2.926.925 and the card is valid up to 2 years (renewable), after which permanent residency can be requested.
Retirees/financially independent applicants use the independent-means route. There is no officially published minimum, but success typically means demonstrating roughly USD 1,300/month of passive, verifiable, lawful income plus around USD 4,000-5,000 in savings. Temporary residency lasts 2 years, permanent residency is available after 2 years, and citizenship after roughly 5 years total; there is no strict minimum stay but absences over 12 consecutive months should be avoided.
Healthcare
Paraguay's system is split: public healthcare (IPS) is free with contributions but overcrowded with long waits, while the private sector operates at near-international standards with modern facilities and same-day service. Most expats use private healthcare exclusively; leading Asunción private hospitals include Hospital La Costa, Sanatorio San Roque and Hospital Bautista, and English-speaking doctors are common in private hospitals. Procedures run roughly 50-70% cheaper than the US.
Comprehensive private health insurance for expats typically costs about USD 50-150 per month; most expats carry private coverage rather than rely on the public system.
Cost of living
Roughly USD 930-1,100/month for a single person including a 1-bedroom city-centre apartment; a budget lifestyle runs about USD 800-1,000/month and a comfortable lifestyle about USD 1,200-1,500/month; a family of four about USD 1,450-1,900/month.
A 1-bedroom apartment in the Asunción city centre averages about ₲3,758,889 (roughly USD 500) per month; Asunción rent is about 89% below New York.
Safety & climate
Paraguay ranks 64th globally in the Global Peace Index with a score of 1.882, an improvement of 5 places over the prior year, placing it in the mid-table range and among the more peaceful South American countries.
Asunción has a subtropical climate with mild winters and hot, humid, rainy summers. The coldest month (July) averages 18.7°C and the warmest (January) 28.8°C, with abundant annual rainfall of about 1,400 mm concentrated in the warmer months.
Community & language
Daily life runs in Spanish and Guaraní (both official languages), so English is not widely spoken outside private hospitals and expat-facing services; the expat community is relatively small and concentrated in Asunción.
Paraguay has two official languages, Spanish and Guaraní; it has the highest rate of fluency in an indigenous language in Latin America, with over 90% of the population speaking Guaraní alongside Spanish.
Taxes
Paraguay applies a territorial tax system: residents (and non-residents) are taxable only on Paraguayan-source income, so foreign-source income such as a foreign pension falls outside the Paraguayan personal-income-tax base.
Paraguay has a limited double-taxation-treaty network, with agreements signed with Chile, Qatar, Taiwan, the United Arab Emirates and Uruguay. Tax credits are not available for income taxes paid abroad.
Compare Paraguay with its closest rivals
The three countries whose RetireScore sits nearest.
