Paraguay
South America • South America
Overview
Paraguay is one of only two South American countries — alongside Argentina — holding a US State Department Level 1 ('Exercise Normal Precautions') travel advisory (April 30, 2025; travel.state.gov), and it ranked 76th of 163 on the 2025 Global Peace Index (score 1.981), fourth in South America. Costs are among the lowest on the continent: Numbeo puts Asunción's cost-of-living index at roughly 35 (excluding rent, NYC=100), with a one-bedroom in the city center around $450-620/month, 300 Mbps fiber at $20-35, and a realistic mid-tier single-person budget of $900-1,100/month in Asunción (moveparaguay.com, May 2026) — dropping to $600-800 in smaller cities like Encarnación. Note that crowd-sourced Numbeo crime perception (Asunción safety scale ~43) runs worse than official ratings, and five border departments (Alto Paraná, Amambay, Canindeyú, Concepción, San Pedro) carry a Level 2 caution due to smuggling-related criminal activity. Paraguay's biggest draw is its residency regime under Law 6984/2022: temporary residency requires only apostilled documents and proof of livelihood (no fixed income floor for most applicants), converts to permanent residency after about 21-24 months, and the constitution allows naturalization applications after three years of residency. An investor track delivers direct permanent residency with a qualifying business investment plan from roughly USD 70,000, and the territorial tax system levies 0% on foreign-source income including US pensions. Healthcare is two-tier: public hospitals are under-resourced, but Asunción's private hospitals (Centro Médico Bautista, Sanatorio Británico, Sanatorio RÃo) offer good care at low prices — $15-50 consultations and comprehensive private insurance from roughly $50-150/month (Pacific Prime; movetoparaguay.com, 2025). Asunción's Health Care Index on Numbeo sits around 64. The trade-offs are practical rather than headline risks. English is limited in daily life — Spanish and Guaranà dominate, and despite Paraguay's improved rank 43 in the methodology-revamped EF EPI 2025 (score 531), expats report needing Spanish for bureaucracy, healthcare, and commerce. The American expat community is small but growing, concentrated in Asunción's Villa Morra and Recoleta neighborhoods, with active Facebook groups ('Expats in Paraguay', 'Americans in Paraguay') numbering in the thousands; residency applications reportedly surged past 15,000 in early 2025 (expatsettle.com). Summers are very hot, infrastructure outside the capital is basic, and all paperwork requires apostilles plus certified Spanish translations.
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.
Pensionado / Retiree Residency (Jubilado)
Retiree subcategory within temporary residency under Law 6984/2022 (implementing rules incl. Decreto 4122/2025) for holders of lifetime pensions or stable passive income. No statutory fixed threshold: practitioners cite roughly USD 1,300/month, with some 2025-2026 sources citing USD 1,500/month — a flagged discrepancy; confirm the current figure with the DNM. Foreign pension income is untaxed under Paraguay's territorial system. No minimum age or physical-presence day count.
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.
Permanent Residency by Investment (SUACE / Investor Route)
Direct permanent residency under Law 6984/2022 for applicants presenting a qualifying investment plan in a Paraguayan business, cited by practitioners from approximately USD 70,000 of committed capital. Skips the two-year temporary phase; permanent residents may apply for naturalization after three years of residency under the constitution.
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.
Temporary Residency (Residencia Temporal)
Standard entry route for US citizens under Migration Law 6984/2022. Requires apostilled documents and proof of livelihood or economic solvency rather than a fixed income threshold. Granted for up to two years (renewable); holders may convert to permanent residency from month 21 of the initial period, provided they have not been absent from Paraguay more than 12 consecutive months.
Tourist Entry (Visa-Free)
US citizens can enter Paraguay visa-free for up to 90 days for tourism purposes. Valid passport required.
Work-Based Temporary Residency
Temporary residency based on an employment relationship or professional activity in Paraguay under Law 6984/2022; the employment contract or professional credentials serve as the proof-of-livelihood requirement. Follows the same 2-year conversion path to permanent residency. US citizens do not need a visa for tourist stays up to 90 days, but paid work requires residency status.
Highlights
- ✓Level 1 US State Department travel advisory (Apr 2025) — one of only two in South America, alongside Argentina
- ✓Cost of living index ~35 (Numbeo Asunción, 2026): one-bedroom city-center rent $450-620/month and a mid-tier single budget of $900-1,100/month
- ✓Fast residency path under Law 6984/2022: temporary residency with no fixed income floor, permanent after ~2 years, citizenship eligibility after 3 years
- ✓Direct permanent residency for investors committing from ~USD 70,000 in a qualifying Paraguayan business
- ✓Territorial tax system: 0% Paraguayan tax on foreign-source income, including US Social Security and pensions
- ✓Private healthcare in Asunción from $15-50 per consultation, with comprehensive insurance from ~$50-150/month
Considerations
- !English prevalence is low in daily life — Spanish (and often GuaranÃ) is needed for bureaucracy, healthcare, and shopping; EF EPI 2025's rank 43 overstates street-level English due to a 2025 methodology change
- !Public healthcare is under-resourced; private insurance is effectively mandatory, and complex care may require travel to Buenos Aires or São Paulo
- !Numbeo perceived-crime data (Asunción safety scale ~43) is notably worse than the Level 1 advisory suggests — a flagged source discrepancy; petty crime in Asunción is real
- !Level 2 'exercise increased caution' applies in five departments along the Brazilian border (Alto Paraná, Amambay, Canindeyú, Concepción, San Pedro) due to smuggling-linked crime
- !Pensioner income threshold is not fixed in statute — practitioners cite USD 1,300-1,500/month and sources conflict; confirm with the DNM before filing
- !All documents require apostilles and sworn Spanish translations; processing runs through in-person appointments in Asunción
- !Expat community is small compared with Panama or Mexico; summer heat regularly exceeds 100°F/38°C and infrastructure outside Asunción is basic