In this guide
The cost of living in Paraguay comes down mainly to rent and which city you pick: in Asunción a new one-bedroom flat averaged about G. 3.8 million a month in 2024, more than today's minimum wage of G. 3,044,000. Food, transport and utilities are cheap for the region, so the big decision is where you live and in what kind of home.
The reference numbers
- Minimum wage: G. 3,044,000 a month from 1 July 2026, after a 5% rise (ABC Color, 2026 (opens in a new tab); Ministry of Labour (opens in a new tab)).
- Consumption floor: for 2025 the national statistics institute (INE) set the urban poverty line at G. 933,108 per person a month, and the food basket at G. 412,618 (ABC Color, 2026 (opens in a new tab)). That is a statistical minimum, not a comfortable budget; use it as your starting point.
- Social security (IPS): employees have 9% of their salary deducted (ABC Color (opens in a new tab)).
What does rent cost, and where?
Asunción's upmarket barrios. In April 2026 the developers' chamber (Capadei) put average rent in Asunción at USD 6–10 per m². The sought-after areas cost more: Las Lomas USD 13.50, Manorá USD 12.50, Villa Morra USD 12 and Ycuá Satí USD 11 per m², so a 100 m² two-bedroom there runs USD 1,100–1,350 a month (La Nación, 2026 (opens in a new tab)). Occupancy is around 97%, so don't expect much room to haggle.
New buildings in Asunción and Luque. A 2024 Metro Research study found averages of G. 3.8 million (one bedroom), G. 5.8 million (two) and G. 8.9 million (three) a month (ABC Color, 2024 (opens in a new tab)).
Greater Asunción. Luque, Lambaré and Fernando de la Mora are where housing demand is growing fastest (ABC Color, 2025 (opens in a new tab)). You pay less per square metre but add a daily commute into Asunción: try the trip at rush hour before you sign.
What to put in the lease
Paraguay has no dedicated tenancy law: the Civil Code applies, the deposit is usually one month and there is no legal cap on increases (Infonegocios, 2025 (opens in a new tab)). So:
- Put the term, amount, currency (guaraníes or dollars) and the renewal increase in writing.
- Record the flat's condition in the contract and take photos on move-in day.
- Ask whether electricity, water and building fees are extra.
Transport and everyday bills
- Buses in the metro area: the government aimed to hold fares at G. 2,300 for standard buses and G. 3,400 for the diferencial service (Última Hora, 2026 (opens in a new tab)).
- Electricity: a 2026 study recommended raising the average ANDE tariff by up to 39.4% gradually through 2030 (Última Hora, 2026 (opens in a new tab)). In summer, air conditioning drives the bill, so leave headroom.
- Payments: 7 in 10 electronic payments on the Bancard network are now by QR code (ABC Color, 2026 (opens in a new tab)). Open a local account once you have your ID card.
Checklist for moving from abroad
- Pick your residency route. Citizens of Argentina, Brazil, Uruguay, Bolivia, Chile, Peru, Colombia or Ecuador can apply for Mercosur temporary residence: two years, not extendable (Migraciones (opens in a new tab)). Everyone else uses temporary residence under Law 6984/2022, valid up to two years, extendable, and the step before permanent residence (Migraciones (opens in a new tab)).
- Apostille before you travel: birth certificate and criminal record; documents not in Spanish need a translation.
- Plan how you will prove income. Since 6 July 2026, permanent residence requires proof of means under 12 categories (employee, self-employed, remote worker, retiree, student and others), with papers showing the activity is real (ABC Color, 2026 (opens in a new tab)).
- Arrive with a cushion for the deposit, first month's rent and a few weeks of short-term lodging while you look.
- If you will live on a border, count the bridge queues: in Encarnación they topped two hours over Easter 2024 (ABC Color, 2024 (opens in a new tab)).
Building your budget
Start with rent for the city and barrio you chose, add utilities and transport, and use the INE basket as the food floor. If you earn in dollars or another currency, work with today's exchange rate, not last year's: upmarket rents are quoted in dollars, but most other spending is in guaraníes.
FAQ
How much do you need to live in Paraguay per month?
It depends mostly on rent. For reference, the minimum wage is G. 3,044,000 and a new one-bedroom flat in Asunción averaged about G. 3.8 million in 2024.
How much is rent in Asunción?
In April 2026 the average was USD 6–10 per m², and USD 11–13.50 per m² in barrios such as Las Lomas, Manorá or Villa Morra.
Which residency should I apply for?
Mercosur and associated citizens can use the two-year Mercosur temporary residence; others apply under Law 6984/2022. Both lead on to permanent residence.
Is it cheaper to live outside Asunción?
Space usually costs less in Luque, Lambaré or Fernando de la Mora, where demand is growing, but you add a daily commute to the capital.
