Paraguay is still considered an insider tip among those interested in emigration. But for anyone seeking an affordable, stable, and peaceful place to live, now is the time to take a closer look.
This landlocked country in South America offers not only beautiful nature and hospitality, but also the lowest cost of living in Latin America.
One key concept that illustrates this advantage: the Canasta Básica.
What Is the Canasta Básica?
The Canasta Básica includes the essential goods and services a household needs to meet daily needs:
food, clothing, housing, education, healthcare, and transportation.
According to the Instituto Nacional de Estadística (INE), the monthly value of the Canasta Básica for a family of four in Paraguay is approximately 3,300,000 to 3,800,000 Guaraníes, which equals around 450 to 520 USD (as of 2025).
In comparison:
In Uruguay, the most expensive country in the region, the same basket costs around 887 USD
Sample Prices of Basic Goods
| Product | Paraguay | Uruguay |
| 1 kg of rice | 0.80 USD | 1.40 USD |
| 1 liter of milk | 1.00 USD | 1.03 USD |
| 1 kg of beef | 4.50 USD | 9.47 USD |
| 12 eggs | 1.20 USD | 3.70 USD |
Monthly Canasta Básica Costs Across Latin America (USD)
| Country | Monthly Cost |
| Paraguay | 446 USD |
| Argentina | 469 USD |
| Colombia | 527 USD |
| Ecuador | 541 USD |
| Brazil | 553 USD |
| Nicaragua | 553.30 USD |
| Venezuela | 601 USD |
| Guatemala | 638 USD |
| El Salvador | 645 USD |
| Honduras | 645.20 USD |
| Chile | 703 USD |
| Mexico | 706 USD |
| Dominican Republic | 750 USD |
| Panama | 779 USD |
| Costa Rica | 865 USD |
| Uruguay | 887 USD |
Housing & Daily Life in Paraguay
| Item | Approx. Cost |
| 2-room apartment in city center | 250 – 350 USD |
| Apartment on the outskirts | from 150 USD |
| Private doctor visit | from 15 USD |
| Private school (monthly tuition) | 60 – 100 USD |
| Internet connection (100 Mbps) | 20 – 30 USD |
Economic Stability as a Key Advantage
Paraguay’s President Santiago Peña emphasizes the country’s macroeconomic stability as a major advantage for investors and expatriates:
- Inflation rate: 4.4%
- Country risk spread: only 180 basis points
This level of stability provides long-term predictability for residents and entrepreneurs alike.
Conclusion
With low living costs, a stable economy, and a high quality of life, Paraguay stands out as a real alternative for those seeking a fresh start abroad.
Whether you are retiring, working remotely, or looking for new opportunities — Paraguay is more than just a hidden gem.