Asunción vs Lisbon
Compare Asunción and Lisbon for expats. Cost of living, tax advantages, and lifestyle. Paraguay's 0% tax vs Portugal's ending NHR regime. Which is better in 2025?
Lisbon has been the darling of digital nomads for years, but with the NHR tax regime ending and costs skyrocketing, many are looking for alternatives. Asunción offers what Lisbon used to: low costs, tax advantages, and a welcoming attitude toward expats. Here's how they compare.
The Verdict
With Lisbon's NHR regime ending and costs exploding, Asunción offers better value for tax-conscious nomads. Lisbon still wins for EU access and established infrastructure.
Asunción is best for:
- ✓Tax optimization
- ✓Budget-conscious living
- ✓Long-term residency
- ✓Authentic cultural immersion
- ✓Avoiding overcrowded expat hubs
Lisbon is best for:
- ✓EU citizenship goals
- ✓European travel base
- ✓Large expat community
- ✓English-speaking environment
- ✓Established digital nomad infrastructure
Monthly Cost Breakdown
| Category | Asunción | Lisbon | Savings |
|---|---|---|---|
| 1-Bedroom Rent | $450 | $1,200 | 63% |
| 3-Bedroom Rent | $800 | $2,200 | 64% |
| Utilities | $80 | $120 | 33% |
| Internet | $35 | $40 | 13% |
| Groceries | $250 | $350 | 29% |
| Dining Out | $150 | $250 | 40% |
| Transport | $100 | $50 | 50% |
| Healthcare | $100 | $150 | 33% |
| Entertainment | $100 | $200 | 50% |
| Total Monthly | $1,265 | $2,360 | 46% |
* Costs are estimates based on a comfortable lifestyle in good neighborhoods. Actual costs vary based on lifestyle choices.
Detailed Comparison
💰Cost of Living
Asunción winsAsunción is roughly half the cost of Lisbon. Rent alone is 60-70% cheaper. A comfortable lifestyle in Asunción costs $1,200-1,500/month vs $2,500-3,500 in Lisbon.
📊Taxes
Asunción winsParaguay's 0% tax on foreign income beats Portugal's options. The NHR regime (10% flat tax) is ending for new applicants. Standard Portuguese tax rates go up to 48%.
🛡️Safety
TieBoth cities are relatively safe. Lisbon has more petty crime due to tourism. Asunción has lower crime overall but less police presence.
☀️Climate
Lisbon winsLisbon has near-perfect weather with 300 sunny days, mild temperatures, and low humidity. Asunción's summers are brutally hot and humid.
🏥Healthcare
Lisbon winsPortugal's healthcare system is excellent and accessible. Paraguay has good private options but less developed public healthcare.
📶Internet & Infrastructure
TieBoth cities offer reliable fiber internet. Lisbon has more coworking spaces and digital nomad infrastructure.
👥Expat Community
Lisbon winsLisbon has one of the world's largest digital nomad communities. Asunción's community is small but growing and less saturated.
📋Visa & Residency
Asunción winsParaguay's residency is easier and faster. Portugal's D7 and other visas have become more competitive and bureaucratic with increased demand.
Pros & Cons
Asunción, Paraguay
Highlights
- +0% tax on foreign income (territorial taxation)
- +Very low cost of living
- +Easy residency process (no income requirements)
- +Growing expat community
- +Authentic Latin American culture
- +Safe neighborhoods
- +Good private healthcare
- +Fast fiber internet available
Drawbacks
- -Limited international flights
- -Spanish language barrier
- -Hot and humid summers
- -Smaller city feel
- -Less developed infrastructure
- -Limited nightlife compared to larger cities
Lisbon, Portugal
Highlights
- +EU residence and travel rights
- +Large English-speaking expat community
- +Excellent weather (300 sunny days)
- +Rich history and culture
- +Great food and wine scene
- +Safe and walkable
- +Direct flights worldwide
- +NHR tax regime (ending)
Drawbacks
- -Very expensive (especially rent)
- -NHR tax regime ending in 2024
- -Overcrowded with tourists
- -Difficult to find housing
- -Gentrification concerns
- -Bureaucratic processes
Frequently Asked Questions
Is Asunción really cheaper than Lisbon?
Yes, significantly. Asunción costs roughly 50% of Lisbon. A nice 1-bedroom in Villa Morra is $450/month vs $1,200+ in Lisbon. Total monthly costs are $1,200-1,500 vs $2,500-3,500.
What happened to Portugal's NHR tax regime?
Portugal's NHR (Non-Habitual Resident) regime, which offered 10% flat tax on certain foreign income, ended for new applicants in 2024. This made Portugal much less attractive for tax optimization.
Can I get EU residency through Paraguay?
No, Paraguay is not in the EU. If EU access is your goal, Portugal remains a better choice despite higher costs. Paraguay is better for tax optimization and South American living.
Which city has a bigger expat community?
Lisbon has a much larger, more established expat community. Asunción's community is small but tight-knit. If you prefer less crowded, more authentic experiences, Asunción wins.
Which is better for long-term residency?
For pure tax optimization, Asunción is better with 0% foreign income tax and easy residency. For EU access and lifestyle, Lisbon may still be worth the premium.
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