Paraguay
South America • South America
Overview
Paraguay has become one of South America's most accessible relocation options for Americans, driven by low costs and favorable taxes. In the capital, Asunción, a one-bedroom apartment in the city center averages about $600/month and roughly $360/month outside the center, with total monthly costs for a single person around $574 excluding rent (Numbeo, May–June 2026; numbeo.com). Numbeo estimates overall living costs are ~54.3% lower than in the United States, and rent ~71% lower. Paraguay also uses a strictly territorial tax system, meaning foreign-source income — including foreign pensions and remote-work earnings — is taxed at 0%, with no wealth, inheritance, or exit tax (Escalada, Expatra, 2025). On safety, the US State Department rates Paraguay Level 1, 'Exercise Normal Precautions' (updated April 30, 2025; travel.state.gov), though it flags Level 2 'Exercise Increased Caution' for five border departments (Alto Paraná, Amambay, Canindeyú, Concepción, San Pedro). The 2025 Global Peace Index ranks Paraguay 75th of 163 countries — fourth-most-peaceful in South America (Vision of Humanity / IEP). Healthcare is uneven: the public system (Ministry of Health and the IPS social-security institute) is overstretched and IPS coverage is generally limited to formal employees, so expats rely on private hospitals concentrated in Asunción (e.g., Sanatorio Migone, Hospital Italiano, Hospital Bautista), where English-speaking, foreign-trained doctors are relatively common. Numbeo's Health Care Index for Paraguay is 64.67 (April 2026), but it rests on only 44 contributors and should be treated cautiously. Immigration is the headline draw. Under Migration Law 6984/2022, most US citizens enter via a 2-year temporary residency that carries no statutory minimum-income requirement (migraciones.gov.py) and converts to permanent residency, with naturalization possible after about three years of permanent residency (Constitution Art. 148). In April 2026 Paraguay launched an 'Investor Pass' offering direct permanent residency for investments starting near $70,000. Interest is climbing fast — national residency applications rose roughly 31–50% in 2025, with US nationals filing 640 of 38,236 applications between January and October 2025 (Paraguay DNM via Asunción Times and IMI Daily). The main cultural hurdle is language: Paraguay is overwhelmingly bilingual Spanish/Guaraní, only 2.4% of the population speaks another language at home (INE EPHC 2024), and English proficiency, while 'Moderate' on the EF EPI (score 531, rank 43, 2025), is concentrated among urban professionals.
Visa Options
Family-Based Permanent Residency
Direct permanent residency for foreign spouses/children of Paraguayan citizens (Law 2193/2003) or spouse/children/grandchildren under 18 of repatriated Paraguayan nationals (Law 6984/2022, Art. 48). No income or investment requirement. Less relevant to US citizens without Paraguayan family ties.
Investor Pass (Residency by Investment)
New residency-by-investment program launched April 2026 (Resolution N° 0283, signed 21 Apr 2026) granting DIRECT permanent residency without SUACE's job-creation requirement. Investment tracks: ~US$70,000 productive/commercial-industrial; US$150,000 tourism; US$200,000 real estate (30% payable upfront) or financial instruments/securities (held ~2 years). Minimal physical presence (one visit every 3 years). Operational details are still being published — treat as medium confidence.
Permanent Residency (SUACE)
Paraguay's primary residency pathway under Law 6984 (2022). Applicants must demonstrate they will contribute to Paraguay through investment, work skills, pension, or other qualifications. Replaced the previous simpler $5,000 bank deposit program.
Retirement Residency (Pensionado)
Retiree route filed as a subcategory of the 2-year temporary residency (there is NO standalone permanent pensionado visa under Law 6984/2022). Requires apostilled proof of stable pension/retirement income. The official temporary-residency framework lists no statutory dollar floor; relocation firms commonly cite roughly US$1,300/month, but this figure is UNVERIFIED against official sources and may be a relic of the pre-2023 law (set to null here pending confirmation with Migraciones). Foreign pension income is untaxed under Paraguay's territorial system.
Temporary Residency (2-Year)
Standard 2-year temporary residency under Migration Law 6984/2022 — the main route for most US citizens, including retirees, remote workers, and passive-income individuals (Paraguay has no separate digital-nomad or rentista visa; all funnel into this permit). The official Migraciones page lists NO minimum income or economic-solvency requirement. Renewable, and converts to permanent residency after 2 years.
Tourist Entry (Visa-Free)
US citizens can enter Paraguay visa-free for up to 90 days for tourism purposes. Valid passport required.
Highlights
- ✓Very low cost of living: a 1-bedroom in central Asunción averages ~$600/month and total costs for one person run ~$574/month excluding rent (Numbeo, May–June 2026); overall ~54.3% cheaper than the US.
- ✓Territorial tax system: 0% tax on foreign-source income (foreign pensions, dividends, remote-work earnings), with no wealth, inheritance, or exit tax (Escalada/Expatra, 2025–2026).
- ✓Easy residency: a 2-year temporary residency with no minimum-income requirement (official Migraciones) converts to permanent residency; naturalization possible after ~3 years of permanent residency (Constitution Art. 148).
- ✓Safe by regional standards: US State Dept Level 1 'Exercise Normal Precautions' (Apr 30, 2025) and Global Peace Index rank 75/163 — 4th-most-peaceful in South America (GPI 2025).
- ✓New Investor Pass (Apr 2026, Resolution N° 0283) grants direct permanent residency for investments from ~$70,000, with minimal physical-presence requirements.
- ✓Surging interest: national residency applications rose ~31–50% in 2025 (Paraguay DNM via Asunción Times / IMI Daily).
Considerations
- !English is not widely spoken: Paraguay is overwhelmingly bilingual Spanish/Guaraní — only 2.4% of the population speaks any other language at home (INE EPHC 2024), and that bundles English with Portuguese, German, etc. EF EPI rates national English 'Moderate' (531, rank 43, 2025), concentrated among Asunción professionals. Functional Spanish is essential.
- !Public healthcare is weak: the Ministry of Health + IPS system is overstretched (long waits, supply shortages) and IPS coverage is generally tied to formal employment, so expats use private hospitals in Asunción plus private insurance (~$50–150/mo local, $150–300+/mo international). Rural care is markedly weaker (ExpatFinancial, ExpatSettle, 2025–2026).
- !Safety caveat: although the country is Level 1, the US State Dept flags Level 2 'Exercise Increased Caution' for five border departments — Alto Paraná, Amambay, Canindeyú, Concepción, and San Pedro — due to crime and weak policing.
- !Small American community: the only stock estimate found is an undated, low-confidence ~2,000 Americans; US nationals filed just 640 of 38,236 residency applications (Jan–Oct 2025, 8th-largest nationality). Organized expat life centers on Asunción Facebook groups/meetups; the Brazilian community (~400k) dwarfs all others.
- !Data-confidence notes: the cost-of-living index (~33) is DERIVED from Numbeo's '54.3% cheaper than the US' (Numbeo publishes no standalone index for Paraguay); the monthly groceries (~$200) and health-insurance (~$75) figures are medium-low-confidence estimates from Expatistan/expat sources; the Numbeo Health Care Index (64.67) rests on only 44 contributors (low reliability); and the English-prevalence score (35) is a reasoned blend (pure-EF mapping ~50, pure-census ~10–15).
- !Visa requirements are in flux: Paraguay replaced its old law (the pre-2023 ~$5,000-deposit-to-permanent-residency route is OBSOLETE) with Law 6984/2022. Any specific pensionado income figure (~$1,300/mo cited by firms) is unverified against official sources — confirm current requirements directly with the Dirección General de Migraciones before relying on them.