"Paraguay is not made for everyone" – with these clear words, the Spanish expat couple Jacinto and Sabina sum up on their YouTube channel Vivir en Paraguay what many newcomers only understand after arriving. Their viral video "Paraguay no es para todo el mundo: lo bueno y lo malo" has reached tens of thousands of people considering a move to this South American country. For those who want to take the step – whether to live permanently or to invest in real estate in Paraguay – this report provides an honest foundation for the decision.
Why Paraguay? What Real Expats Say
Jacinto, a professional speaker and consultant, and his wife Sabina, a psychologist and online coach, moved with their two daughters from Spain to Paraguay in 2022. Their choice fell deliberately on this country: Paraguay is geographically well-positioned in the heart of South America, offers a stable economic system, and – most importantly for the family – a lifestyle that combines freedom, nature, and community. But they also emphasize: those who come to Paraguay expecting to simply move into a better version of Europe will be disappointed. The country demands adaptability, patience, and an openness to things that are not yet finished. Those who bring these qualities will find a life here that is barely possible in Europe anymore.
The Advantages – Why Paraguay Excites So Many Europeans
1. The People: Warmth That Genuinely Surprises
The most frequently cited advantage – highlighted again and again by Jacinto and Sabina – is the people. "The best thing about Paraguay is without a doubt the Paraguayans themselves," says Jacinto. The openness, friendliness, and helpfulness of the local population exceeds the expectations of almost all newcomers. Those coming from an anonymous European everyday life experience genuine hospitality here – not as a forced friendliness, but as a lived togetherness.
2. Tax Advantages: Zero Percent on Foreign Income
Paraguay taxes foreign income at 0 percent. Those who receive income from Germany, Austria, or Switzerland as freelancers, remote workers, retirees, or investors pay no taxes on it in Paraguay. Income earned within the country is taxed at only 10 percent – one of the lowest rates worldwide. Additionally: no wealth tax, no inheritance tax, and no capital gains tax on foreign profits. For retirees and investors, this represents a significant financial advantage over European tax law.
3. Low Cost of Living – Well Below European Levels
Those who move to Paraguay with a German or European income live comparatively comfortably. Current figures show: you need around 1,500 euros per month in Asuncion to maintain the standard of living that would cost 4,000 euros in Berlin. Food is up to 60 percent cheaper, restaurant visits affordable, and services – from household help to tradespeople – cost a fraction of what you would pay in Europe.
4. Affordable Real Estate in Paraguay with Real Growth Potential
The Paraguayan real estate market offers purchase prices that have long been history in Europe. Simple entry-level properties – plots in structured settlements, small houses in the countryside – are available from as little as 15,000 to 30,000 euros. Higher-quality properties in locations like Villarrica, Colonia Independencia, or at Lago Ypacarai are in the mid five-figure range. Foreigners may purchase property on equal terms in Paraguay – without limits or special taxes. Those who now buy a house in Paraguay or acquire a plot of land in Paraguay are positioning themselves in a growth market with a low entry price.
5. Nature, Green Space, and Room – Quality of Life You Can Feel
Paraguay is green, warm, and sparsely populated. The country has fewer than 8 million inhabitants over an area almost as large as Germany. Those who live in the countryside find vast plots at affordable prices, clean air, tranquility, and a sense of genuine freedom. Year-round pleasant to warm temperatures make Paraguay an attractive destination – especially for those who want to escape the grey northern European winter permanently.
6. Established German-Speaking Community
Paraguay has a centuries-old history of German immigration. In regions like Colonia Independencia, Hohenau, Obligado, or Encarnacion, there are vibrant German-speaking communities with their own schools, clubs, church services, and social networks. For newcomers this means: you are never completely on your own. The experience of those who came before you is invaluable – especially in the first few months.
The Disadvantages – What Emigrants Should Know Before They Come
Jacinto and Sabina are admirably honest: those who associate Paraguay only with advantages overlook significant challenges. These should be known – not to be deterred, but to be well prepared.
- ►Extreme Heat and Humidity: In the Paraguayan summer (November to March), temperatures regularly exceed 40°C, combined with high humidity. Air conditioning is not a luxury, but an absolute necessity.
- ►Poor Infrastructure Outside Cities: Roads outside major centers are often unpaved or in poor condition. Public transport is cheap but frequently unreliable. Those living in the countryside need their own reliable vehicle.
- ►Healthcare: The public health system is chronically underfunded. Expats should factor in private health insurance from the start – it is affordable in Paraguay, but essential.
- ►Bureaucracy: Administrative processes are slow and often require multiple visits to different authorities. Those accustomed to efficient digital services in Germany need patience – and ideally local support.
- ►Internet Connectivity in Rural Areas: Internet is now well developed in Asuncion and larger cities. In the countryside – a central point especially for remote workers – the connection is often unstable or severely limited. Always check local network coverage before buying rural property.
- ►Security Situation: Paraguay is safer than its media reputation suggests, but not without risk. Precautions are advisable in large cities. Rural regions and structured settlements are significantly quieter and safer.
What Does This Mean for Buying Real Estate in Paraguay?
Those who are concretely considering buying real estate in Paraguay should be aware of some fundamental points. The Paraguayan land registry market works differently to Germany: notaries generally only authenticate signatures, not necessarily the contract content. Legal accompaniment by a local lawyer is therefore essential.
At the same time, the market offers real opportunities: foreigners can purchase property on fully equal terms, land transfer taxes are low, and the acquisition of agricultural land is – with the exception of state INDERT plots – uncomplicated. Particularly popular among German-speaking buyers are the regions around Villarrica, Colonia Independencia, Coronel Oviedo, and Lago Ypacarai – regions with functioning community, international schools, good infrastructure, and stable value development.
Conclusion: Eyes Open, Heart Wide – Paraguay Is Worth It for the Right People
Paraguay is not perfect. But for the right people – those who come with realistic expectations, a functioning income, and the willingness to embrace a different way of life – it offers a quality of life that barely exists in Europe at a comparable price. The real estate market in Paraguay is more attractive for international buyers than ever: low prices, clear property rights for foreigners, significant tax advantages, and a steadily growing economy form a solid foundation.
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