The cost of living in Paraguay in 2026 runs about ₲4.4–4.8 million (~$760–$835) a month for a single person living simply, and about ₲7.7 million (~$1,345) for a comfortable single life in central Asunción. A couple should plan on roughly ₲7.8–9.3 million (~$1,355–$1,615), and a family of four about ₲13.5–15.3 million (~$2,350–$2,665) before private school fees and private health insurance. These figures use the Banco Central del Paraguay rate of ₲5,752 per US dollar on October 7, 2026. Rent is the biggest swing factor. A one-bedroom outside the center averages about ₲2.0 million (~$350) nationally, while central Asunción averages about ₲3.65 million (~$635). The guaraní has strengthened this year, so dollar earners get less than older guides suggest. Below you’ll find rents by city, everyday prices, wages, taxes, residency fees, and sample budgets.
Quick Answer
- Single person: ₲4.4–4.8 million (~$760–$835) on a lean budget; about ₲7.7 million (~$1,345) for a comfortable one in central Asunción.
- Couple: ₲7.8–9.3 million (~$1,355–$1,615) a month in Asunción.
- Family of four: about ₲13.5–15.3 million (~$2,350–$2,665) before private school and private health insurance.
- Rent, one-bedroom: ₲1.5–2.2 million (~$260–$385) outside the center; ₲2.0–3.65 million (~$350–$635) in the center, depending on the city.
- Utilities: about ₲260,000–310,000 (~$45–$55) a month for an 85 m² apartment; internet adds about ₲125,000 (~$22).
- Bus fare: ₲3,400 (~$0.59) on differential and electric buses in Greater Asunción.
- Minimum wage: ₲3,044,000 (~$529) a month since July 1, 2026.
Exchange Rate, Inflation, and Minimum Wage in 2026
Three numbers shape what Paraguay costs you this year.
The exchange rate. The Banco Central del Paraguay reference rate was ₲5,751.99 per dollar and ₲6,439.35 per euro on October 7, 2026. That is a much stronger guaraní than in November 2025, when the dollar bought about ₲7,040. A ₲5 million monthly budget cost about $710 then and about $870 now. Keep your budget in guaraníes and convert it again each time you review it.
Inflation. Prices are stable. The BCP’s September 2026 inflation report put annual inflation at 1.7%, up from 1.5% in August, with 1.9% accumulated since December. Fuel is the exception. The Rio Times reported that fuel prices were up about 17–19% over 12 months and regular diesel about 25%.
The minimum wage. The monthly minimum wage rose 5% to ₲3,044,000 on July 1, 2026, under Decree 6225. The daily wage (jornal) is ₲117,077, and the night-shift minimum is ₲3,957,200, according to Última Hora’s report on the Labor Ministry’s rules.
At ₲5,752 per dollar, Paraguay’s 2026 minimum wage equals about $529 a month. After the 9% social security deduction, a minimum-wage worker takes home about ₲2.77 million (~$482).
Cost of Living by City
Asunción and its suburbs (Gran Asunción) hold most of the country’s jobs, private schools, and expat services. Encarnación, on the Paraná River across from Argentina, is popular with retirees. Ciudad del Este is a busy border trading city next to Brazil. The table uses crowd-sourced averages from Numbeo (updated October 2, 2026). Asunción has about 495 price reports from the past year; Encarnación and Ciudad del Este have very few, so treat those rows as rough guides.
| City | 1-Bed, City Center | 1-Bed, Outside Center | Basic Utilities (85 m²) | Bus Fare |
|---|---|---|---|---|
| Asunción | ₲3,648,000 (~$634) | ₲2,206,000 (~$383) | ₲291,000 (~$51) | ₲3,400 |
| Encarnación | ₲2,907,000 (~$505) | ₲1,890,000 (~$329) | ₲257,000 (~$45) | about ₲2,800 |
| Ciudad del Este | ₲2,000,000 (~$348) | ₲1,500,000 (~$261) | ₲291,000 (~$51) | about ₲5,000 |
| Paraguay average | ₲3,274,000 (~$569) | ₲2,027,000 (~$352) | ₲307,000 (~$53) | ₲3,600 |
A few patterns stand out:
- Asunción is the most expensive place to rent, especially in central and upscale areas such as Villa Morra, Carmelitas, and Recoleta. Numbeo’s single-person estimate before rent is also higher there, at about ₲3.5 million (~$609), compared with ₲3.24 million (~$564) nationally.
- Encarnación is cheaper for housing and daily costs, and restaurant meals average about ₲25,000 (~$4.35) compared with ₲40,000 in Asunción.
- Ciudad del Este shows the lowest rents, but the data comes from only 16 contributors, so local listings are a better guide.
- Suburbs such as San Lorenzo, Luque, Lambaré, and Fernando de la Mora usually rent for less than central Asunción, but commutes into the city can be long at rush hour.
Housing and Rent
Housing is where your budget is won or lost. Larger apartments show the same gap between Asunción and the rest of the country:
| Rental (monthly) | Paraguay Average | Asunción |
|---|---|---|
| 1-bedroom, city center | ₲3,274,000 (~$569) | ₲3,648,000 (~$634) |
| 1-bedroom, outside center | ₲2,027,000 (~$352) | ₲2,206,000 (~$383) |
| 3-bedroom, city center | ₲5,344,000 (~$929) | ₲6,122,000 (~$1,064) |
| 3-bedroom, outside center | ₲3,530,000 (~$614) | ₲3,728,000 (~$648) |
Some practical points for renters:
- Check the currency. Many newer apartments in Asunción are advertised in dollars, while older and local-market units are priced in guaraníes. A dollar lease removes exchange-rate risk for dollar earners, but it doesn’t for anyone paid in guaraníes.
- Ask what’s included. Building fees (expensas), parking, furniture, and sometimes electricity can be added on top of the advertised rent.
- Expect paperwork. Long-term leases often ask for a deposit and sometimes a local guarantor. Furnished short-term rentals cost more but are easier to get without a Paraguayan credit history.
- Rent is taxed at the reduced rate. Housing rentals fall under the 5% VAT rate rather than the standard 10%.
For buyers, Numbeo’s averages put apartment prices at roughly ₲9.9 million (~$1,725) per square meter in city centers and ₲7.3 million (~$1,275) outside them. Foreigners can buy property in Paraguay, though some border-zone restrictions apply in rural areas.
Utilities, Internet, and Phone
Basic utilities (electricity, water, and garbage) for an 85 m² apartment average about ₲307,000 (~$53) a month nationwide and about ₲291,000 (~$51) in Asunción. Electricity is cheap because the state utility ANDE draws on the huge Itaipú and Yacyretá hydro dams. ANDE’s leadership has said that even after planned tariff updates, Paraguay will keep the lowest electricity rates in the region, about 25% below Uruguay’s, according to InfoNegocios. A tariff review has been under discussion, so check for changes before you sign a lease.
Summers are long and hot, and air conditioning is the main reason bills climb from November to March.
| Item | Typical Monthly Cost (PYG) | Approx. USD |
|---|---|---|
| Basic utilities, 85 m² apartment | ₲307,000 | $53 |
| Home internet (60+ Mbps) | ₲125,000 | $22 |
| Mobile plan (calls + 10 GB data) | ₲100,000 | $17 |
| Gym membership | ₲201,000 | $35 |
Food: Groceries and Dining Out
A single person who cooks most meals spends about ₲1.2–1.5 million (~$210–$260) a month on groceries. Beef, cassava (mandioca), and local produce are good value. Imported goods, cheese, and many packaged foods cost more than people expect. Basic foods such as rice, flour, and milk carry the reduced 5% VAT.
Average national prices in October 2026:
| Item | Typical Cost (PYG) | Approx. USD |
|---|---|---|
| Milk (1 liter) | 6,921 | $1.20 |
| Bread (1 lb loaf) | 7,005 | $1.22 |
| Rice (1 lb) | 3,477 | $0.60 |
| Eggs (12) | 13,309 | $2.31 |
| Chicken fillets (1 lb) | 11,862 | $2.06 |
| Beef round (1 lb) | 24,602 | $4.28 |
| Local cheese (1 lb) | 22,923 | $3.99 |
| Bananas (1 lb) | 3,086 | $0.54 |
| Tomatoes (1 lb) | 6,200 | $1.08 |
| Mid-range bottle of wine | 35,000 | $6.08 |
Eating out is affordable by US standards. Common prices:
- Meal at an inexpensive restaurant: about ₲37,500–40,000 (~$6.50–$7)
- Three-course dinner for two at a mid-range restaurant: about ₲200,000–250,000 (~$35–$43)
- Fast-food combo meal: about ₲40,000 (~$7)
- Cappuccino: about ₲17,000 (~$3)
- Domestic beer (pint, at a bar): about ₲10,000 (~$1.75)
Lunch buffets sold by weight (comida al peso) and set-lunch spots are the cheapest way to eat out on workdays.
Transportation and Getting Around
Paraguay has no metro or commuter rail. Buses are cheap but slow and often crowded, so many residents with the means use ride-hailing apps or buy a car.
| Item | Cost (PYG) | Approx. USD |
|---|---|---|
| Bus fare, differential or electric (Greater Asunción) | 3,400 | $0.59 |
| Average one-way local fare (national) | 3,600 | $0.63 |
| Monthly transit spending (daily commuter) | 205,000–220,000 | $36–$38 |
| Taxi start | 8,600 | $1.50 |
| Gasoline (1 liter) | about 7,240 | $1.26 (~$4.76 per gallon) |
| New Toyota Corolla or similar | about 174.6 million | ~$30,360 |
The ₲3,400 fare for the new electric buses in Greater Asunción matches the differential (air-conditioned) bus fare, per the Vice Ministry of Transport’s June 2026 decision. The government subsidizes fares, so the price riders pay is well below the operating cost.
If you plan to drive, budget more than fuel. Insurance, registration, parking, repairs, and depreciation add up, and fuel prices rose sharply over the past year. Imported used cars can be cheaper than new ones, and new car prices fell about 14% over 12 months in the BCP’s September data.
Healthcare and Insurance Costs
Paraguay’s health system has three parts: public hospitals run by the Ministry of Public Health (MSPBS), the social security institute IPS, and private clinics and insurers.
- Public system (MSPBS): services at ministry facilities, plus medicines on the ministry’s list, are free under Law 5099 of 2013. Waits can be long and facilities outside Asunción are basic.
- IPS (social security): formal employees are covered through payroll. According to this 2026 guide to IPS contributions, employees pay 9% of salary and employers pay 16.5%. The contribution can’t be based on less than the minimum wage.
- Private plans (medicina prepaga): most foreigners with outside income use private insurance and private hospitals in Asunción, which offer the best care in the country. Premiums depend on age, plan, and pre-existing conditions, so get quotes from several insurers before you budget.
The sample budgets below leave out private insurance because prices vary so much by age. Older buyers should expect it to be one of their largest monthly costs, and some plans limit enrollment above a certain age.
Schools and Childcare
School choice can double a family’s budget.
- Public schools: basic and secondary education in public schools is free under Paraguay’s Constitution and Law 4088. Classes are in Spanish, often with Guaraní, and quality varies.
- Private preschool or kindergarten: about ₲1.06 million (~$184) a month, full day.
- International primary school: about ₲28.4 million (~$4,940) a year per child on average nationally, and about ₲33.8 million (~$5,875) in Asunción. Top bilingual schools charge more, plus enrollment fees, uniforms, and transport.
For a family with two children in international school, tuition alone adds about ₲4.7 million (~$825) a month.
Salaries vs. Cost of Living
Local wages are low compared with foreign incomes, which is why Paraguay feels cheap to remote workers and retirees but tight to many residents.
| Income Measure | Monthly (PYG) | Approx. USD |
|---|---|---|
| Minimum wage (from July 1, 2026) | 3,044,000 | $529 |
| Minimum wage after 9% IPS deduction | 2,770,000 | $482 |
| Average net salary, Paraguay (crowd-sourced) | 3,582,000 | $623 |
| Average net salary, Asunción (crowd-sourced) | 4,234,000 | $736 |
A central Asunción one-bedroom at about ₲3.65 million would take more than the average local net salary. Most local workers share housing, live in the suburbs, or live with family.
Taxes: VAT and Income Tax
- IVA (VAT): the general rate is 10%, and a reduced 5% rate applies to some basic foods such as rice, flour, and milk, to medicines, and to housing rentals, as La Nación explains. Shelf prices include VAT.
- Personal income tax (IRP): Law 6380 of 2019 sets progressive rates of 8% on net income up to ₲50 million, 9% from ₲50 million to ₲150 million, and 10% above that. These are among the lowest rates in Latin America.
- Source rules: Paraguay’s system is built mainly around Paraguayan-source income. That is why it attracts people with foreign income, but the treatment of foreign salaries, pensions, dividends, and interest depends on your situation. Ask a Paraguayan accountant before you assume it is tax-free, and remember your home country may still tax you.
Residency Requirements and Fees
Citizens of the US, Canada, the UK, and the EU can visit Paraguay without a visa for short stays. Living there longer requires residency through the Dirección Nacional de Migraciones. The rules changed in the past year:
- A November 2025 migration law ended the old route of depositing $5,000 in a local bank for immediate permanent residency. Applicants now start with temporary residency, valid for up to two years and renewable once, as IMI Daily reported.
- Resolution 407 of May 2026 tightened the income proof needed to move from temporary to permanent residency, for files submitted from July 6, 2026.
- A new Investor Pass, launched in April 2026, offers a faster route for qualifying investments starting at about $70,000.
Government fees in effect from July 1, 2026, as listed by The Rio Times’ residency guide:
| Item | Fee (PYG) | Approx. USD |
|---|---|---|
| Temporary residency (cash) | 2,787,550 | $485 |
| Temporary residency (card payment) | 2,864,208 | $498 |
| Permanent residency (incl. category change) | 2,926,925 | $509 |
| Mercosur permanent residency | 2,341,540 | $407 |
| Cédula (ID card), first issue | 8,500 | $1.50 |
On top of these, plan for apostilles, sworn translations of non-Spanish documents, police and Interpol certificates, and, for most people, a local lawyer or facilitator. Expect four to eight months from filing to receiving your cédula.
One-Time Setup Costs
Budget for these before your first month:
- Residency fees: about ₲2.8 million (~$485) for temporary residency, plus document, translation, and legal costs.
- Rental deposit: often one month’s rent, sometimes more, plus the first month in advance.
- Furnishing an unfurnished apartment: appliances such as an air conditioner, fridge, and washer are the biggest items.
- Health coverage gap: travel or international insurance for the first months, until a local plan starts.
- Phone and internet setup: a local SIM is cheap and quick; home internet may need an installation visit.
Sample Monthly Budgets
These budgets combine the averages above. The lean single budget assumes a one-bedroom outside the center in Asunción’s suburbs or Encarnación. The other columns assume Asunción. Private health insurance and private school fees are not included.
| Expense (PYG) | Single, Lean | Single, Comfortable | Couple | Family of Four |
|---|---|---|---|---|
| Rent | 1,900,000–2,200,000 | 3,650,000 | 2,200,000–3,650,000 | 3,530,000–5,340,000 (3-bed) |
| Utilities | 260,000–300,000 | 350,000 | 350,000–400,000 | 450,000 |
| Internet + mobile | 210,000–230,000 | 230,000 | 330,000 | 430,000 |
| Groceries | 1,200,000 | 1,500,000 | 2,600,000 | 4,800,000 |
| Eating out + leisure | 400,000 | 1,000,000 | 1,200,000 | 1,500,000 |
| Transport | 150,000–220,000 | 400,000 | 500,000 | 1,500,000 (one car) |
| Gym | — | 210,000 | — | — |
| Personal care, clothing, other | 250,000 | 400,000 | 600,000 | 1,300,000 |
| Total (PYG) | 4.4–4.8 million | 7.7 million | 7.8–9.3 million | 13.5–15.3 million |
| Total (USD) | $760–$835 | $1,345 | $1,355–$1,615 | $2,350–$2,665 |
Family of four: Numbeo’s national estimate for a family of four is about ₲12.1 million (~$2,100) a month before rent. Adding a three-bedroom gives about ₲15.6–17.4 million (~$2,715–$3,030), a little above the table, so treat the table as a careful household’s budget. International school for two children adds about ₲4.7 million (~$825) a month.
Retirees and remote workers: add private health insurance to these totals. For a couple over 60 it can be one of the largest items, so get real quotes before you settle on a city.
Money-Saving Tips
- Live outside central Asunción. A one-bedroom outside the center costs about ₲1.4 million (~$250) less a month than one in the center.
- Consider Encarnación. Rents and restaurant prices are lower, and the riverside city is calmer than the capital.
- Price leases in guaraníes if you earn guaraníes, and in dollars if you earn dollars, to cut currency risk.
- Shop at markets and local brands. Mercado 4 in Asunción and neighborhood stores beat supermarkets on produce.
- Watch the air conditioning. It is the main reason summer power bills climb, even with cheap hydro electricity.
- Use buses for regular trips and save ride-hailing for nights and bad weather.
- Keep a currency buffer. The guaraní moved more than 15% against the dollar in under a year.
Safety Notes
Asunción’s central and upscale residential areas are generally manageable with normal big-city care. Phone snatching and petty theft are the most common problems, especially around bus stops and crowded downtown streets. Ciudad del Este’s busy border district calls for extra care with valuables. Rural areas in the north, near the Brazilian border, have a history of organized crime, so check your government’s travel advice before visiting.
How Paraguay Compares With Nearby Countries
Paraguay is one of the cheaper countries in South America, with low taxes, very low inflation, and inexpensive electricity. Its neighbors differ in ways that matter to newcomers. Compare the cost of living in Argentina, where prices can swing quickly with inflation and the peso, and the cost of living in Brazil, where big cities such as São Paulo cost more. To the northwest, the cost of living in Bolivia is lower on many everyday items. If you are weighing a calmer but pricier option in the region, see our guide to the cost of living in Uruguay.
Frequently Asked Questions
How much money do you need to live in Paraguay per month?
A single person needs about ₲4.4–4.8 million (~$760–$835) a month for a simple life, and about ₲7.7 million (~$1,345) for a comfortable one in central Asunción. A couple should budget about ₲7.8–9.3 million (~$1,355–$1,615), and a family of four about ₲13.5–15.3 million (~$2,350–$2,665) before private school and private health insurance.
Is $1,000 a month enough to live in Paraguay?
Yes, for one person on a simple budget. At ₲5,752 per dollar, $1,000 is about ₲5.75 million. That covers a one-bedroom outside the center in Asunción’s suburbs or Encarnación, plus food, utilities, and buses. It is tight for a central Asunción apartment, and it does not leave much room for private health insurance.
How much is rent in Paraguay in 2026?
A one-bedroom averages about ₲3.27 million (~$569) in a city center and ₲2.03 million (~$352) outside it, based on crowd-sourced averages. In Asunción the figures are about ₲3.65 million (~$634) and ₲2.21 million (~$383). A three-bedroom averages about ₲3.5–5.3 million (~$614–$929) nationally.
Is Asunción more expensive than the rest of Paraguay?
Yes. Asunción has the highest rents in the country, and its everyday costs before rent average about ₲3.5 million (~$609) for one person, compared with ₲3.24 million (~$564) nationally. Encarnación and Ciudad del Este have lower rents.
What is the minimum wage in Paraguay in 2026?
Since July 1, 2026, the monthly minimum wage is ₲3,044,000 (about $529), after a 5% increase. The daily minimum wage is ₲117,077.
How much does Paraguay residency cost?
Government fees from July 1, 2026 are ₲2,787,550 (about $485) for temporary residency paid in cash and ₲2,926,925 (about $509) for permanent residency. The cédula ID card costs ₲8,500. Documents, translations, and legal help cost extra.
Is public healthcare free in Paraguay?
Yes. Services at Ministry of Public Health facilities, and medicines on the ministry’s list, are free under Law 5099 of 2013. Most foreigners still buy private health insurance because waits can be long and the best hospitals are private.
Conclusion
Paraguay remains one of the most affordable places to live in South America, with low taxes, cheap electricity, and inflation under 2%. The catch for dollar earners in 2026 is the stronger guaraní, which has raised dollar costs by more than 15% since late 2025. A single person can live simply for about $760–$835 a month, or comfortably in central Asunción for about $1,345. Families should plan on about $2,350–$2,665 before private school and insurance. Choose your city and neighborhood first, since rent drives most of the difference, then price health coverage and recheck the exchange rate before you commit.
Sources
- Banco Central del Paraguay – daily reference exchange rates
- Banco Central del Paraguay – inflation report, September 2026
- The Rio Times – Paraguay inflation, September 2026
- Última Hora – 2026 minimum wage amounts
- Bloomberg Línea – 5% minimum wage increase
- Numbeo – Paraguay, Asunción, Encarnación, Ciudad del Este (crowd-sourced averages, October 2026)
- InfoNegocios – ANDE electricity tariffs
- Última Hora – 2026 electric and differential bus fares
- TopTrabajos – IPS social security contributions
- La Nación – VAT (IVA) rates in Paraguay
- DNIT – Law 6380/2019 (tax system)
- The Rio Times – Paraguay residency rules and fees, 2026
- IMI Daily – Paraguay residencies, first half of 2026
