Cost of Living: Paraguay vs Europe Compared

How Far Does Your Money Go in Paraguay vs Europe?

For Europeans considering a move to Paraguay, the cost difference is one of the biggest draws. But how much cheaper is it really? This detailed comparison puts hard numbers side by side, covering every major expense category.

We compare Asuncion (Paraguay’s capital) with a selection of European cities to give you a realistic picture.

Housing

Housing is typically the largest expense, and this is where Paraguay delivers the most dramatic savings.

Rent (2-Bedroom Modern Apartment)

City	Monthly Rent
Asuncion (Villa Morra)	$500-800 USD
Asuncion (Lambare)	$250-450 USD
Lisbon	$1,200-2,000 USD
Barcelona	$1,400-2,200 USD
Berlin	$1,200-1,800 USD
Prague	$900-1,500 USD
London	$2,500-4,000 USD

Even Asuncion’s most expensive neighborhoods cost less than the cheapest options in most European capitals. Compared to London, you could rent for a full year in Asuncion for what four months costs in the UK capital.

For neighborhood-specific details, see our Asuncion neighborhood guide.

Food and Groceries

Monthly Groceries (Couple)

Location	Monthly Cost
Asuncion	$200-300 USD
Southern Europe	$400-600 USD
Western Europe	$500-800 USD
Northern Europe	$600-900 USD

Paraguay’s agricultural output — beef, grains, fruits, vegetables — keeps food prices remarkably low. Local markets (mercados) offer fresh produce at even lower prices than supermarkets.

Dining Out (Per Person, Mid-Range)

Location	Average Meal
Asuncion (local restaurant)	$3-8 USD
Asuncion (mid-range)	$10-20 USD
Lisbon	$12-25 USD
Barcelona	$15-30 USD
Berlin	$12-25 USD
London	$20-40 USD

A filling almuerzo ejecutivo (business lunch) in Asuncion costs $3-5 and typically includes a main course, side, drink, and sometimes dessert. Finding a comparable deal in any European city is nearly impossible.

Healthcare

Monthly Health Insurance

Location	Private Insurance
Asuncion	$80-150 USD
Spain (private supplement)	$100-200 USD
Germany (private)	$300-600 USD
UK (private supplement)	$150-400 USD
France (mutuelle)	$50-150 USD

Doctor Visit (Private, Out of Pocket)

Location	General Practitioner
Asuncion	$20-40 USD
Southern Europe	$50-100 USD
Western Europe	$80-200 USD
UK (private)	$100-250 USD

Paraguay’s healthcare system offers affordable private care that, while not matching the best European hospitals, handles the vast majority of medical needs competently.

Transportation

Monthly Transportation

Location	Cost
Asuncion (rideshare/taxi)	$50-100 USD
Asuncion (own car, fuel + insurance)	$100-200 USD
European capitals (public transit pass)	$50-100 USD
European capitals (car ownership)	$300-600 USD

Public transportation in Asuncion is limited compared to European cities with their metro systems and extensive bus networks. Most expats in Asuncion use a combination of rideshare apps and personal vehicles. Car ownership costs are low — fuel, insurance, and maintenance are all cheaper than in Europe.

Utilities

Monthly Utilities (2-Bedroom Apartment)

Expense	Asuncion	European Average
Electricity	$30-60 USD	$80-200 USD
Water	$5-15 USD	$30-60 USD
Gas	$10-20 USD	$50-150 USD
Internet (fiber)	$20-45 USD	$30-60 USD
Mobile phone	$10-20 USD	$20-50 USD
Total	$75-160 USD	$210-520 USD

Paraguay benefits from abundant hydroelectric power (Itaipu and Yacyreta dams), which keeps electricity costs low. For internet speed details, see our remote work connectivity guide.

Taxes

This is where the comparison becomes truly striking for anyone earning foreign income.

Tax on Foreign-Sourced Income

Location	Tax Rate
Paraguay	0%
Germany	Up to 45%
France	Up to 45%
Spain	Up to 47%
UK	Up to 45%
Portugal (NHR expired)	Up to 48%

Paraguay’s territorial tax system means that remote workers, freelancers, and entrepreneurs earning from international sources keep 100% of their foreign income (before home country obligations, if any).

For a freelancer earning $5,000 EUR per month from international clients, the tax difference alone can be $1,500-2,000 per month compared to most European countries.

Total Monthly Budget Comparison

Single Person, Comfortable Lifestyle

Expense	Asuncion	European Capital (avg)
Rent	$550	$1,500
Groceries	$200	$500
Dining out	$150	$400
Transportation	$75	$150
Healthcare/Insurance	$100	$200
Utilities + Internet	$100	$300
Entertainment	$100	$300
Total	$1,275	$3,350

Couple, Comfortable Lifestyle

Expense	Asuncion	European Capital (avg)
Rent	$650	$1,800
Groceries	$300	$650
Dining out	$250	$600
Transportation	$100	$200
Healthcare/Insurance	$200	$350
Utilities + Internet	$120	$350
Entertainment	$150	$400
Total	$1,770	$4,350

The savings are consistent: Paraguay costs roughly 60% less than the average European capital for a comparable lifestyle.

What You Give Up

Honesty requires acknowledging what Paraguay does not offer compared to Europe:

• Public transportation: European metro systems and buses are far superior
• Cultural infrastructure: Museums, theaters, and cultural events are fewer
• Food variety: European cities have more diverse international dining options
• Infrastructure quality: Roads, sidewalks, and public spaces are less maintained
• Seasonal variety: Paraguay lacks Europe’s four-season charm
• Travel connections: Europe’s cheap flights and rail networks are unmatched

What You Gain

• Financial freedom: Dramatically lower expenses and taxes
• Warm climate: Year-round warmth (if that is your preference)
• Slower pace: Less stress, more personal time
• Community: Genuine warmth and hospitality
• Space: Larger living spaces for less money
• Opportunity: A growing economy with room for entrepreneurship

For the full picture on life in Paraguay, explore our cost of living page and the top reasons expats choose Paraguay.

Ready to make the move? A virtual address from MyPyMail is a practical first step.