While retiring abroad to Europe has become popular, and even highly recommended, Paraguay is emerging as one of the best options for those seeking a new beginning in Latin America—whether its as a retiree or a remote worker. According to retirement and relocation platform International Living, the South American country is touted as a “potential next frontier for expats,” thanks to its low cost of living, low financial requirements for residency, affordable real estate, and tax incentives.

“People are expanding their search beyond the usual destinations,” Jennifer Stevens, the executive editor of International Living told Travel + Leisure. “They’re looking for places where their money goes further, but also where they can establish residency more easily and build a flexible international lifestyle. Paraguay is starting to check a lot of those boxes.”

The report, by Paraguay-based International Living correspondent, David Hammond, notes that in one of the most upscale neighborhoods in the capital city of Asunción, a one-bedroom apartment costs around $700 per month to rent. Grocery prices are also significantly lower than in the U.S., ranging from 30 percent to 70 percent less. A family of three has reported paying $60 for electricity and water during the summer, the country’s hottest season.

Those who wish to invest in their own home are also in luck. Hammond reported that modern, single-bedroom apartments start at $90,000, while two-bedroom, two-bathroom units in Asunción can be purchased for about $160,000.

Additionally, staying long-term in the country doesn’t come with as many bureaucratic challenges as in other countries. Paraguay has more flexible residency rules, such as not requiring proof of income for new applicants seeking temporary residency—a process Hammond referred to as “a practical process [rather] than a financial barrier.”

Another benefit to relocating to Paraguay is its low tax burden for foreign retirees as expats don’t have to pay local taxes on their Social Security income. Meanwhile, freelance workers or sole business proprietors are charged only a 3 percent gross turnover tax, rather than the standard 10 percent, if they earn less than $300,000 per year.

Paraguay is already drawing interest from foreign nationals, as the country received a record number of international arrivals and residency applications in 2025, the report states.

About the size of California, Paraguay is landlocked between Bolivia, Brazil, and Argentina. Its population speaks Spanish and Guaraní, a local Indigenous language. Similarly, the country’s culture and history have been marked by its deep Guaraní roots and colonial influences.

Last year, a study found that Asunción is one of the top three places in Latin America where $1 million in retirement savings would last the longest.

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