In 2024, expats are even more in love with Paraguay than ever before. They are happy to find a mixture of enjoyable things in the country, including a low cost of living, friendly locals, and numerous outdoor activities.
Whether you are a foreigner who relocates to Paraguay in search of a new adventure in retirement or a change of scenery in your professional life, you will get it there.
Economic advantages
Paraguay’s economy is notable for its stability and growth, primarily driven by agriculture and hydroelectric power. The country has made significant strides in attracting foreign investment, mainly because it offers low tax rates and a business-friendly environment.
Here, expats benefit from a flat tax rate of 10% on income, corporate, and value-added taxes, which is among the lowest in the region.
Paraguay’s territorial tax system means that income earned outside of the country is not taxed, which is a financial advantage for expats and digital nomads with global incomes.
Residency and citizenship
The process of obtaining residency in Paraguay is relatively simple. Potentially, it may lead to citizenship within a few years.
The country offers both temporary and permanent residency options, with the latter providing a path to naturalization. Expats appreciate relaxed visa requirements and the fact that Paraguay is a safe place to live, with a residency program that is accessible to most nationalities.
The recent changes to the Paraguay Tax Residency Law have eliminated the need for a university degree or bank deposit for residency, simplifying the process further.
Once residency is granted, you will receive a local ID card called Cedula, which gives its holder most of the rights of a Paraguayan citizen.
This includes access to social benefits and the ability to enter Paraguay freely at any time, even if the borders are closed, which makes it an ideal choice for investors and retirees alike.
Quality of life
Expats living in Paraguay often cite the high quality of life as a major draw. The cost of living is significantly lower here than in many Western countries, allowing for a comfortable lifestyle on a modest budget.
Housing, food, and transportation are all affordable, and healthcare services, while not at the level of more developed countries, are adequate for routine medical needs.
Adding to these benefits, the average monthly expenses for a single person are estimated at around PYG 7,488,608, while a family of four will incur costs of about PYG 17,249,974.
For dining out, a basic lunch in the business district is priced at approximately PYG 44,760, and for a combo meal at a fast-food restaurant, you will pay around PYG 35,531.
When it comes to accommodation, a furnished 85 sqm apartment in an expensive city district may cost you about PYG 5,387,270 per month, whereas, in a more average locality, the rent drops to about PYG 3,277,070.
Cultural richness
Paraguay’s cultural heritage is a rich tapestry woven from the threads of its indigenous Guarani roots, Spanish colonial history, and the customs of international immigrants. The nation’s cultural identity is deeply influenced by the Guarani people, who contribute not only the co-official language but also the local folklore and artistry.
Paraguay is celebrated for its traditional music, such as the polka and the guarania, often accompanied by the harp, guitar, and accordion.
Craftsmanship is another cornerstone of Paraguayan culture, with exquisite works like ñandutí lace, which resembles a spider’s web, and ao po’i embroidery, reflecting the intricate beauty of the nation’s artistic heritage.
These crafts, along with black clay work, ceramics, and filigree silver jewelry, are not just art forms but also symbols of Paraguay’s cultural diversity.
As an expat, you are welcome to immerse yourself in this rich cultural milieu. Learning Spanish or Guarani, both widely spoken throughout the country, significantly improves an expat’s experience and facilitates integration into the community.
More than 80% of Paraguayans are bilingual, speaking both languages, which reflects the nation’s cultural fusion and extensive bilingualism.
If you want to connect with the heart of Paraguay’s culture, go ahead and engage with the local traditions, participate in festivals, and taste the national beverage, mate, or its chilled version, tereré.
Paraguay is often called the Heart of America because it’s right in the middle of the continent and is important for its cultural richness.
Outdoor activities
With its diverse landscapes, including the vast Chaco region, numerous rivers, and lush subtropical forests, Paraguay is indeed a paradise for nature lovers and outdoor enthusiasts.
The country’s superb biodiversity is evident in its national parks and natural reserves which are home to a variety of flora and fauna.
Expats and visitors enjoy numerous activities in Paraguay. They fish in the mighty Paraná River, South America’s second-longest river, hike through the verdant trails, and enjoy bird watching, where they might spot some of the country’s unique species.
The Itaipu Dam, on the border with Brazil, is not only a marvel of engineering but also a source of almost all of Paraguay’s electricity, showcasing the country’s sustainable use of its natural resources.
Challenges to consider
Despite its allure, expatriates considering a move to Paraguay should be mindful of potential challenges.
The infrastructure, particularly outside of major cities like Asunción and Ciudad del Este, may be less developed compared to Western countries, leading to occasional inconveniences like power outages or poor road conditions.
Bureaucratic processes in the country are often time-consuming, so you’ll have to be patient when obtaining your residency permits, work visas, or making any property transactions.
The healthcare system won’t always meet the expectations of those used to more advanced facilities, and the high levels of poverty in some areas may be a culture shock.
Community and support
The expat community in Paraguay is growing, providing a network of support for newcomers. With helpful online forums and local expat groups, you will easily discover resources and advice for adjusting to life in Paraguay, from finding housing to dealing with the legal system.
Would you like to make your relocation to Paraguay as issue-free and enjoyable as it may only be? Do you have any questions left? Contact the International Wealth team, and we will not only answer them but also take care of all the arrangements!