Situated in South America, Paraguay is home to several natural wonders including the world’s largest water reserve and vast amounts of wilderness.
It’s also known as ‘the heart of South America’ and ‘the land of water’ and is home to over 7 million people.
If you’re considering moving to Paraguay, you’ll probably want to know if you’re able to afford the living costs first.
This article provides a handy breakdown and compares the cost of living in Paraguay to the national average. You’ll also find out what you can get for your money in this country.
The average salary in Paraguay
The median income for jobs in Paraguay is typically around 8,220,000 PYG per month, which is around. $1,151,54.
Typical jobs include:
· Physician ($20,045)
· Dentist ($15,290)
· Pharmacist ($13,019)
· Architect ($10,466)
· Product Manager ($10,154)
So does this match up to the cost of living? Let’s find out.
The cost of living in Paraguay
On the whole, Paraguay is an inexpensive country. You can still live a lavish lifestyle, but it will cost you significantly less than in other American states such as California and New York.
The estimated monthly costs you can expect to pay when living n Paraguay. Obviously this will depend on whether you live on your own or are part of a family. To compare, here are two different examples:
· Family of four estimated monthly costs are 13,324,676 Guarani
· The average monthly cost for a single person is 5,933,667 Guarani
On average, the cost of living in Paraguay is 58.9 % lower than in the US.
Both land and property prices are considered low compared to many other countries. This means that you get much more for your money.
It’s possible that you can buy a house for hardly any money at all, however you get what you pay for. Properties range from one-room shacks with tin roofs to more modern properties with an asking price of $150,000. Properties close to the city center will have a higher asking price than more remote ones. Renting a one-bedroom apartment in the city center will cost you around 2,604,794.66 Gs per month, compared to New York rentals that average $3,150 for a studio rental.
When buying a house in Paraguay it’s important to do your research
In Paraguay, food prices can vary but generally, it’s considered affordable.
Here’s an example of the costs of some basic food.
500 gr local cheese – 19,156 Gs
Fresh white bread – 2,815 Gs
1 liter milk – 6,629 Gs
12 eggs – 13,336 Gs
1 kg potatoes – 7,967 Gs
Red table wine – 45,534 Gs
Where you shop can make a huge difference to your monthly food budget. To keep costs low always buy equivalent brands rather than expensive branded goods. If you prefer to eat out, an average restaurant bill will cost you around $11.87 per person.
Public transport in Paraguay is a cost-effective way to get around. In fact, transport costs 45% less than in the United States. The main method of travel is buses, which will cost you an average of $0.50 per trip.
Public healthcare is available for national citizens in Paraguay, but it is severely understaffed. This has led people to find the funds for a private doctor instead of waiting for treatments or diagnoses. Healthcare policies in Paraguay have an approximate cost of $75 per month.
Where you live can have a huge impact on the amount of tax that you pay.
The standard income tax rate that you are expected to pay in Paraguay is 10%. This is considerably lower than the 20.3% $ tax rate that was paid by the average single working in America last year. Connecticut and New Jersey have the highest tax rates in America.
Other living costs
Typical monthly expenses such as water, electricity and gas are slightly higher than in other European countries. This is because Paraguay is landlocked and has limited energy resources.
Other items such as a prepaid mobile tariff can be an affordable way to stay connected. Approximate costs are 2 GB data for 4 days = 11,000 PYG – $1.5 USD.
The pros and cons of living in Paraguay
· The low cost of living is an attractive feature of Paraguay for many people.
· A relaxed and welcoming place to live. Visitors and residents are always greeted with a smile and an offer of a drink.
· The open space and fresh air is a major selling point for people who are considering moving to Paraguay. It’s often referred to as a rural paradise.
· Paraguay temperatures can reach 37 Celsius in the summer months. This is because the country is far away from sea breezes.
· It is a developing country. Some people may find this part of the charm of the country but it’s important to keep it in mind before uprooting your family and relocating.
· There are a lot of dirt or cobblestone roads. The majority of towns and cities have been tarmacked in recent years though.
Places to live in Paraguay
Asunción – the capital of Paraguay and is packed full of amenities, including shopping centers, sports centers, bars and restaurants.
Encarnacion – a recently renovated town that hosts the largest carnival in the country every year.
Caacupe – known as the religious center of Paraguay and for being a quiet country town.
Pilar – situated on the eastern bank of the Paraguay river, Pilar is a friendly, small town in southwestern Paraguay.
Wherever you decide to live in Paraguay, it’s ideal for people who want a slower pace of life that’s close to nature.
So, can you afford to live in Paraguay?
To conclude, the good news is that the cost of living in Paraguay is much lower than in some American states or countries. When considering whether to move somewhere new, remember to consider all of the factors that affect living costs, from your wages to food and clothing. Whether you live in the cheapest or most expensive state, budgeting is key to living a happy and financially stable lifestyle.