Cost of living in Paraguay 2026: Asunción and main cities

Paraguay combines an informally dollarised economy with prices that, in many categories, are significantly lower than in neighbouring countries. In this guide we review how much it costs to live in Asunción, Encarnación, Ciudad del Este and Villarrica in 2026, with a focus on rents, groceries, transport, utilities and internet. The figures are realistic estimates as at the publication date; always check against a fresh source when making a decision.

Overview

For a single professional with an average urban lifestyle, Asunción sits in a range of USD 1,800 to 3,200 per month, before holidays and savings. A typical family of four falls between USD 3,500 and 6,000 per month depending on school, housing and car. These figures are lower than Buenos Aires (adjusting for purchasing power), substantially lower than Santiago or Montevideo and comparable to mid-sized cities in inland Brazil.

Housing: rents in Asunción

The neighbourhoods most in demand for residential rentals among expats and young professionals are:

• Villa Morra: a premium gastronomic and retail hub. Modern 2-bedroom apartments: USD 700 to 1,300 per month. Penthouses and triplexes: USD 2,000 to 4,000.
• Las Mercedes: established residential, large houses. A 3-4 bedroom house with a garden: USD 1,200 to 2,500 per month. Apartments: USD 700 to 1,500.
• Carmelitas: a boom in new towers. 2-bedroom apartments in recent towers: USD 700 to 1,100 per month.
• Mariscal López: a mixed corporate corridor. Apartments: USD 600 to 1,200 per month.
• Ycuá Satí and Recoleta: more affordable options with good connectivity. USD 450 to 800 per month.

Rents are quoted and paid in USD unless the contract states otherwise. It is customary to ask for 2 months' deposit. You can browse properties for sale or to let in the ViaParaguay listings.

Housing: other cities

• Encarnación: a tourist city on the Paraná river. 2-bedroom rentals: USD 350 to 700 per month. Riverside with views: a premium of 15-30%.
• Ciudad del Este: the commercial capital of the triple frontier. Central apartments: USD 300 to 600 per month. Residential neighbourhoods (KM 7, KM 8): USD 400-800.
• Villarrica: a mid-sized inland city. Rents: USD 250 to 500 per month for 2-3 bedroom houses. An excellent option for a quiet life with good connectivity.

Groceries and the basic basket

The leading supermarkets in Asunción are Superseis, Stock, Real, España and Casa Rica. A monthly basic basket:

• Single person: USD 250 to 400 (covering fruit, vegetables, meat, dairy, pasta and cleaning products).
• Family of four: USD 700 to 1,200, with room for premium or imported brands.

Municipal markets (Mercado 4, Abasto, Mercado de las 4 Mondongas, neighbourhood fairs) offer fruit, vegetables and meat 20-40% cheaper than supermarkets. Paraguayan beef —some of the best in the region— is considerably cheaper than in Argentina or Chile: a prime ribeye runs at between USD 7 and USD 10 per kg.

Transport

• Urban public transport (collectives/buses): a fare of between G. 3,500 and G. 4,000 (USD 0.45 to 0.55). Pasaje Electrónico smart card.
• Uber and MUV: an average ride in Asunción between USD 3 and USD 6. Heavily used, with broad supply.
• Traditional taxi: USD 4 to 8 per average ride.
• Fuel: regular petrol around USD 0.95 to 1.05 per litre; diesel in a similar band. Among the cheapest in the region.
• Brand-new car: compact saloon from USD 20,000-25,000. A 3-5 year old used car: USD 12,000-18,000.
• Comprehensive motor insurance: USD 45 to 90 per month depending on vehicle value.

Household services

• Electricity (ANDE): a typical 2-bedroom apartment with air conditioning: USD 30 to 70 per month. A large house with multiple AC units: USD 100 to 200 per month at the height of summer.
• Water (ESSAP): USD 10 to 25 per month depending on consumption.
• Gas: 10 kg cylinder: USD 10 to 14. Mains natural gas is not yet widely available.
• Fibre-optic internet (Copaco, Tigo, Personal, Claro): 300 Mbps: USD 25 to 40 per month; 1 Gbps: USD 40 to 65 per month.
• Postpaid mobile with data: USD 15 to 30 per month.
• Service charges in a tower with amenities: USD 80 to 250 per month depending on the building's category.

Eating out and leisure

• Set lunch in Villa Morra or Carmelitas: USD 7 to 12.
• Dinner for two at a mid-range restaurant with wine: USD 40 to 70.
• Coffee at a speciality café: USD 2.50 to 4.
• Cinema ticket: USD 4 to 6 depending on day and screen.
• Chain gym: USD 30 to 60 per month.

Healthcare

Paraguay has a mixed system: IPS (public, with employer and employee contributions) and a private sector with prepaid health plans. For expats, taking out a private health plan is the norm:

• Individual prepaid plan, young adult: USD 60 to 130 per month.
• Family plan (2 adults + 2 children): USD 200 to 400 per month.
• Private medical consultation without cover: USD 25 to 60 depending on speciality.

Education

• Premium bilingual schools (American School, San Andrés, Alemán Concordia): USD 400 to 900 per month per pupil, plus an annual enrolment fee.
• Mid-tier private schools: USD 150 to 300 per month.
• Private university: USD 250 to 500 per month depending on the course.
• Public university: practically free, with a low annual enrolment fee.

Quick regional comparison

At purchasing-power parity and for an equivalent lifestyle:

• Asunción is roughly 20-30% cheaper than Buenos Aires in dollar terms, with significantly lower housing costs.
• Vs. Montevideo: Asunción is 30-45% cheaper for housing, similar for groceries and cheaper for transport.
• Vs. Santiago de Chile: Paraguay is around 35-50% cheaper overall.
• Vs. São Paulo: comparable supermarket prices; clearly lower housing costs in Asunción; lower transport and fuel costs.

The combination of moderate costs with tax residency and a low IRP makes Paraguay attractive to professionals with overseas income.

Budgeting tips

• Negotiating an annual rental with payment in advance can shave 5-10% off the price.
• Wholesale shopping at Mercado 4 reduces the basic basket by 20-30%.
• Rather than a brand-new car, a regional-brand 0 km or a certified used vehicle is usually optimal.
• Taking out a family health plan in a block (through a company or association) reduces premiums.
• Paying for services with a Paraguay-issued card avoids exchange-rate costs.

Summary: how much do I really need?

Order of magnitude for Asunción in 2026:

• Single professional, moderate lifestyle: USD 1,800 to 2,400 per month.
• Single professional, high-end lifestyle: USD 2,800 to 3,500 per month.
• Family of 4, moderate lifestyle: USD 3,500 to 4,500 per month.
• Family of 4, high-end lifestyle with a premium bilingual school: USD 5,500 to 7,500 per month.

For Encarnación, Ciudad del Este and Villarrica, reduce these ranges by 25-40%.

Asunción detail by neighbourhood

Villa Morra

The city's gastronomic and retail heart. Shopping del Sol, Paseo La Galería and hundreds of restaurants and coworking spaces. Resident profile: young professionals, expats and executives. Pros: infrastructure and social network. Cons: rush-hour traffic and premium rents. Browse Villa Morra.

Las Mercedes

A traditional residential neighbourhood with tree-lined streets, large houses and country-house gardens. Profile: established families and diplomats. Pros: tranquillity, greenery and proximity to Villa Morra. Cons: limited supply of new apartments. See Las Mercedes.

Carmelitas

A booming area with new towers from 2015 onwards. A mix of corporate offices, embassies and residential. Ideal for those looking for a new tower with amenities.

Mariscal López

A corridor connecting to the centre. It includes both offices and residential. It offers good value for money.

Ycuá Satí and Recoleta

An affordable entry option, with quick access to Villa Morra and good transport links.

Long-term let vs furnished short-term

• Long-term contract (12-24 months): a lower price per m2, requiring 2 months' deposit + month in advance.
• Furnished short-term let: 30-70% premium over the long term. Useful for the first 3-6 months while you decide on a neighbourhood.
• Airbnb / aparthotel: USD 50-120 per night in premium areas for short stays. Expensive for long stays.

Owner's recurring taxes and expenses

If, instead of renting, the new resident buys their home, the following must be added:

• Municipal property tax: ~1% per year on fiscal value.
• Service charges if it is an apartment in a tower with amenities.
• Home insurance: USD 15-40 per month depending on the sum insured.
• Projected maintenance: a reserve of 0.5-1% per year of the value.

See our property-purchase guide to understand the full tax stack on acquisition.

Exit: sunk costs on returning or moving

• Refund of the rental deposit: subject to handing back the property in good condition.
• Closing the bank account: quick, with no significant cost.
• Cancelling ANDE, ESSAP, internet and mobile: individual procedures, finalised on the day you hand back the property.
• If you sell a property: IRP-GC on the gain.

Impact of the exchange rate

The guaraní has moved with relative stability in recent years (oscillating mostly between G. 7,200 and G. 7,800 per USD). That means that, despite a large part of the contract being in guaraníes, the budget in dollars is fairly predictable for the expat. Compared with Argentina, where the exchange rate has moved 2-3x in just a few years, Paraguay offers cost planning closer to that of OECD countries.

Verifying the numbers

The published figures are realistic ranges but tend to be updated every 6-12 months. For a relocation decision, it is worth:

• Quoting current rents with 2-3 vetted estate agencies from the directory.
• Reviewing recent ANDE and ESSAP bills shared by current residents.
• Comparing health-plan options by requesting quotes from 2-3 providers.
• Making a 2-3 week visit before deciding.