Retire in Paraguay: 2025 Complete Guide
Why more retirees are discovering Paraguay: stretch your pension 2-3x further, pay 0% tax on foreign income, and enjoy a warm, welcoming culture. Here's everything you need to know.
Why Retirees Are Choosing Paraguay
"We retired on $2,800/month Social Security. In Florida, we were barely getting by. In Paraguay, we live like royalty — nice apartment, housekeeper, dining out twice a week, private healthcare. We're saving $800/month and living better than ever."
— Retired couple from Florida, moved 2023
Stretch Your Pension 2-3x
The same lifestyle that costs $4,000-5,000/month in the US costs $1,500-2,500 in Paraguay. Your retirement savings and pension go 2-3 times further.
- • Rent: $400-700 for nice apartment
- • Healthcare: $75-200/month private insurance
- • Housekeeper: $30-50/week
- • Restaurant meal: $8-15
0% Tax on Foreign Income
Paraguay only taxes income earned inside Paraguay. Your Social Security, pension, 401k withdrawals, and investment income are 100% tax-free locally.
- • Social Security: Not taxed in Paraguay
- • 401k/IRA withdrawals: Not taxed
- • Pension income: Not taxed
- • Investment dividends: Not taxed
Quality Healthcare at 70% Less
Private hospitals in Asunción offer quality care with English-speaking doctors. Many doctors trained in US, Argentina, or Brazil.
- • GP visit: $20-40 (vs $150+ in US)
- • Specialist: $40-80 (vs $300+ in US)
- • Insurance: $75-200/mo (vs $500+ in US)
- • Prescriptions: 50-80% cheaper
Warm Climate & Friendly Culture
Escape cold winters with Paraguay's subtropical climate. Paraguayans are known for warmth and hospitality toward foreigners.
- • Winter (Jun-Aug): 15-25°C (60-77°F)
- • No hurricanes, earthquakes, or tsunamis
- • Welcoming "mí casa es tu casa" culture
- • Relaxed, low-stress lifestyle
Monthly Retirement Budget
Budget Retirement
- Rent: $300-450 (1BR, good area)
- Utilities: $50-70
- Food/groceries: $200-300
- Healthcare: $75-100
- Transport: $50-100
- Entertainment: $100-200
Single person, modest but comfortable
Comfortable Retirement
- Rent: $500-800 (2BR, Villa Morra)
- Utilities: $70-100
- Food/dining: $350-500
- Healthcare: $150-200
- Transport: $100-150
- Housekeeper: $120-200
- Entertainment: $200-350
Couple, dining out regularly, housekeeper
Luxury Retirement
- Rent: $1,000-1,500 (luxury/house)
- Utilities: $100-150
- Food/dining: $600-800
- Healthcare: $200-350
- Transport/car: $200-400
- Staff (housekeeper, gardener): $300-500
- Entertainment/travel: $500-1,000
Couple, premium lifestyle, frequent travel
Social Security Goes Further
The average US Social Security benefit is ~$1,900/month. In Paraguay, that alone provides a comfortable retirement — something impossible in most US cities where you'd barely cover rent. Couples receiving $3,500+ combined can live luxuriously.
Healthcare for Retirees
Private Healthcare Quality
- Modern private hospitals in Asunción
- Many doctors trained internationally (US, Argentina, Brazil)
- English-speaking doctors available at major hospitals
- Short wait times compared to US/Canada
- Most common medications available locally
Cost Comparison (vs USA)
| Service | Paraguay | USA |
|---|---|---|
| GP Visit | $20-40 | $150-300 |
| Specialist | $40-80 | $250-500 |
| MRI Scan | $150-300 | $1,000-3,000 |
| Insurance/mo | $75-200 | $500-1,500 |
Top Hospitals for Retirees in Asunción
Sanatorio Italiano
Most English speakers, modern facilities, excellent for seniors
Hospital Privado Bautista
24/7 ER, comprehensive care, good cardiology
Migone Hospital
Good general care, affordable, well-established
Diagnósticos Avanzados
Best diagnostic imaging, specialists on-site
Insurance Options for Retirees
- • Local plans (ASSA, Patria): $75-150/month, covers most needs, pre-existing conditions may be excluded initially
- • Hospital direct plans: $100-200/month with specific hospital (Italiano, Bautista)
- • International (Cigna, Allianz): $300-600/month, includes evacuation coverage to US
- • Pay-as-you-go: Many retirees just pay cash — costs are so low it's viable
Best Places to Retire in Paraguay
Asunción (Villa Morra / Recoleta)
Best for Most RetireesThe capital offers the best infrastructure, healthcare, and expat community. Villa Morra and Recoleta are safe, walkable, with everything you need nearby.
Rent: $500-900/month (2BR apartment)
Climate: Hot summers, mild winters
Healthcare: Best in country
Expat community: Largest, most active
Encarnación
Best for Safety & Beach LifestyleCalled "Paraguay's Mini Miami," this beach town on the Paraná River is the safest major city. Clean, organized, with a beautiful waterfront promenade.
Rent: $350-600/month (2BR apartment)
Climate: Slightly cooler than Asunción
Healthcare: Good, fewer specialists
Lifestyle: Relaxed, beach-oriented
San Bernardino
Best for Wealthy RetireesUpscale lake resort town 40 minutes from Asunción. Popular with wealthy Paraguayans, very safe, peaceful environment with weekend Asunción access.
Rent/Buy: Higher prices, houses common
Climate: Lakeside, slightly cooler
Healthcare: Basic local, Asunción nearby
Lifestyle: Quiet, resort-style
Areguá
Best for Budget & ArtsCharming artist colony 30 minutes from Asunción. Known for strawberries, pottery, and affordable lakeside living. Strong sense of community.
Rent: $250-450/month
Climate: Lakeside, relaxed
Healthcare: Basic, Asunción close
Lifestyle: Artistic, bohemian
Residency Process for Retirees
Good News: No Special Retirement Visa Needed
Paraguay uses the same residency process for everyone — no minimum income, pension, or investment required. This is simpler than many countries that require proof of retirement income.
Documents Needed
Valid Passport
At least 6 months validity
Background Check
FBI check (USA) or equivalent, apostilled
Birth Certificate
Apostilled and translated to Spanish
Marriage Certificate (if applicable)
Apostilled and translated
Health Certificate
Obtained in Paraguay (~$50)
Timeline & Costs
Timeline: 3-6 months for temporary residency
Flexibility for Retirees
After getting residency, you only need to visit Paraguay once every 3 yearsto maintain status. This is perfect for retirees who want to travel or split time between countries.
Path to Citizenship
After 3 years of residency, you can apply for Paraguayan citizenship. This grants a passport with visa-free access to 146+ countries including the EU. Dual citizenship is allowed.
Practical Considerations for Retirees
Language
Basic Spanish is important for quality of life. While you can survive in expat areas, learning Spanish opens up the country.
- • Private tutors: $8-15/hour locally
- • Language schools available in Asunción
- • Many retirees take 6 months of classes
- • Paraguayans are patient with learners
Climate Consideration
Paraguay has hot summers (Dec-Feb) reaching 38-42°C (100-108°F). Many retirees travel during peak summer.
- • AC is essential and common
- • Winters (Jun-Aug): pleasant 15-25°C
- • Best months: April-May, Aug-Nov
- • Some retirees split time (Paraguay winter = US summer)
Expat Community
The expat community is smaller than Costa Rica or Panama but growing. You'll find fellow retirees and regular social activities.
- • Weekly expat meetups in Villa Morra
- • Facebook groups: "Expats in Paraguay"
- • Churches with English services
- • Golf clubs, tennis, social clubs
Getting Back to the US
Paraguay is farther from the US than popular retirement destinations. Factor this into your decision if frequent visits home are important.
- • Direct to Miami: 7 hours (American Airlines)
- • Via Panama: 9-11 hours (COPA)
- • Flights: $400-800 one-way typical
- • Not as convenient as Mexico or Costa Rica
Frequently Asked Questions
How much money do I need to retire in Paraguay?
A comfortable retirement in Paraguay costs $1,500-2,500/month for a couple, including rent in a nice neighborhood, healthcare, dining out, and entertainment. Budget retirees can live on $1,000-1,500/month. This is 50-70% less than comparable US retirement costs.
Is my pension taxed in Paraguay?
No, Paraguay has a territorial tax system meaning foreign-source income (including US Social Security, 401k withdrawals, and pensions) is not taxed in Paraguay. Your retirement income remains 100% tax-free locally. US citizens still have US tax obligations.
What visa do retirees need for Paraguay?
Retirees apply for the same temporary residency as other expats - there's no special retirement visa. Requirements: passport, FBI background check (apostilled), birth certificate, health certificate. No minimum income requirement. Process takes 3-6 months and costs $2,000-3,500.
How is healthcare in Paraguay for retirees?
Private healthcare in Asunción is good quality at 70% less than US costs. GP visits $20-40, specialists $40-80, private insurance $75-200/month. Major hospitals have English-speaking doctors. Serious conditions may require travel to Argentina or Brazil.
Is Paraguay safe for retired expats?
Yes, Paraguay is generally safe for retirees. It has a US Level 1 travel advisory. Violent crime against foreigners is rare. Retirees typically live in safe neighborhoods like Villa Morra, Recoleta, or gated communities. Standard urban awareness applies.
What are the best places for retirees in Paraguay?
Asunción (Villa Morra, Recoleta): Best infrastructure, healthcare, expat community. Encarnación: Beachfront, safest city, quieter lifestyle. San Bernardino: Lake resort town, wealthy area, peaceful. Areguá: Artist community, close to Asunción, affordable.
Can I buy property as a retiree in Paraguay?
Yes, foreigners can buy property with the same rights as locals. Nice apartments in Asunción cost $80,000-150,000. Houses with land $100,000-300,000. No restrictions on foreign ownership. Many retirees rent for 6-12 months first to find the right area.
Do I need to speak Spanish to retire in Paraguay?
Basic Spanish is highly recommended for quality of life. Private hospitals have some English speakers, but daily life operates in Spanish (and Guaraní). Many retirees take Spanish classes upon arrival. The expat community provides English-speaking support.
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