Paraguay is changing, and fast. For 20 years, its indicators have been catching up with those of developed countries. This page compares it with five reference countries (France, Canada, Switzerland, Portugal, Germany) on the criteria that define a country's attractiveness. Data comes from official sources: World Bank, IMF, OECD, UNODC, Numbeo. Quarterly update.
Economic growth: Paraguay outperforms Europe
Since 2010, Paraguay has shown average growth of 3.8% annually, compared to 1.2% for the eurozone. In 2024, Paraguay's GDP grew by 4.5%, driven by agriculture (soybeans, beef), hydroelectric power (Itaipu, Yacyreta) and a young population. The IMF forecasts growth of 4.0% in 2025 and 3.8% in 2026.
GDP per capita remains modest (around 6,200 USD nominal), but it has doubled in 15 years. In purchasing power parity, it reaches 16,000 USD, roughly one-third of the French level. The gap narrows every year. The growth differential suggests a gradual catch-up, reminiscent of Chile in the 1990s-2000s.
Security: one of the safest countries in Latin America
Paraguay's homicide rate is 6.7 per 100,000 inhabitants (2023), down 30% since 2015. It is one of the lowest rates in Latin America, well below Brazil (21.3), Colombia (25.4) or Mexico (26.6).
Paraguay remains above European standards, but the trend is one of rapid improvement. The government launched a national security plan in 2024 that includes 5,000 new police recruits and a drone surveillance system in border areas. Petty crime (pickpocketing, home burglaries) remains the main risk for expatriates, concentrated in certain Asuncion neighborhoods. The country is safer than the Latin American average and is approaching Eastern European security standards.
Cost of living: purchasing power that changes everything
The cost of living in Paraguay is 60 to 70% lower than in France. A comfortable monthly budget for a single person (housing, food, transport, leisure) is between 700 EUR and 1,000 EUR in Asuncion, and under 600 EUR in the countryside.
| Cost of living comparison (base 100 = France) | |
|---|---|
| Paraguay (Asuncion) | 35-40 |
| Portugal (Lisbon) | 70-75 |
| Germany (Berlin) | 90-95 |
| France (Paris) | 100 |
| Canada (Montreal) | 95-100 |
| Switzerland (Zurich) | 150-160 |
Concretely: a 400 EUR monthly rent for a furnished apartment in a good Asuncion neighborhood, compared to 1,200 EUR in Paris or 2,000 EUR in Zurich. A restaurant meal: 8 EUR in Asuncion versus 25 EUR in Paris. Gasoline is subsidized (about 0.80 EUR/L). Services (hairdresser, cleaning, gardening) cost 3 to 5 times less than in Europe. This cost difference is the primary driver of the recent wave of expatriation to Paraguay.
Taxation: an attractive regime for entrepreneurs and retirees
Paraguay applies a system of territorial taxation: foreign-source income is not taxed. The flat 10% rate on local income (IRP) and the 10% VAT are among the lowest in the world. There is no wealth tax, no inheritance tax for direct descendants, and tax residency is acquired after 120 days of presence. For an entrepreneur or retiree, the difference compared to Europe can amount to tens of thousands of euros per year.
Energy: a major hydroelectric power
Paraguay is the 4th largest electricity exporter in the world and the 1st net exporter of renewable energy per capita. The Itaipu dam (14 GW, co-owned with Brazil) and Yacyreta (3.2 GW, with Argentina) together produce over 90% of the country's electricity, entirely from hydroelectric sources. Paraguayan electricity is among the cheapest in the world (0.06 EUR/kWh for households).
This energy abundance attracts electro-intensive industries and could turn Paraguay into a data center hub in South America. The government is currently negotiating with tech giants to set up carbon-neutral data centers.
Real estate: prices that haven't exploded yet
Paraguay's real estate market remains affordable. The average price per m2 in a residential Asuncion neighborhood is 1,000 to 1,200 EUR, compared to 10,000 EUR in Paris, 7,000 EUR in Berlin or 4,000 EUR in Lisbon. In the countryside, prices drop to 400-600 EUR/m2.
| Average price per m2 in city center (apartment, 2025) | |
|---|---|
| Asuncion (Paraguay) | 1,000 - 1,200 EUR |
| Lisbon (Portugal) | 4,000 - 5,500 EUR |
| Berlin (Germany) | 6,000 - 8,000 EUR |
| Montreal (Canada) | 5,500 - 7,000 EUR |
| Paris (France) | 9,000 - 12,000 EUR |
| Zurich (Switzerland) | 14,000 - 18,000 EUR |
The market remains dominated by new construction: 70% of transactions involve properties less than 5 years old. Ownership is straightforward (there is no complex title system like France's life usufruct or emphyteutic leases). Foreigners can buy without restrictions, including agricultural land (except within the 50 km border strip).
Demographics: a young and growing population
With a median age of 27 and a population of 7.5 million, Paraguay has a demographic dividend that Europe exhausted 20 years ago. The working-age population (15-64) represents 64% of the total. This youth is an asset for growth, domestic consumption and innovation, provided education and employment keep pace.
Innovation and digitalization: the digital awakening
Long lagging behind, Paraguay is rapidly catching up digitally. Internet penetration went from 30% in 2015 to 85% in 2025. The country has 7.2 million mobile subscriptions for 7.5 million inhabitants. 5G has been deployed in Asuncion and Ciudad del Este since 2023.
The government launched the 'Paraguay Digital 2030' program in 2023 with a 500 million USD investment in digital infrastructure. Paraguayan fintech (mobile payments, neobanks) is booming, driven by a still-low banking rate (45%) that is rising fast. The country attracts foreign developers thanks to its cost of living and favorable taxation, creating an emerging regional tech hub.
Monetary stability: a stable guarani
The guarani (PYG) is one of the most stable currencies in Latin America. Paraguayan inflation has remained contained around 4% annually for 10 years, with an independent central bank pursuing inflation targeting since 2011. International reserves cover 8 months of imports.
Public debt is barely 35% of GDP (compared to 110% in France, 65% in Germany). This budgetary frugality, inherited from a conservative political culture, gives Paraguay a margin for maneuver that many European countries have lost. Paraguay's sovereign rating (BB+ from Fitch, positive outlook) regularly improves.
Summary: Paraguay in 10 indicators vs reference countries
| International comparison (2024-2025 data) | ||||||
|---|---|---|---|---|---|---|
| GDP Growth | 4.5% | 1.1% | 0.8% | 1.9% | 1.3% | 1.4% |
| Inflation | 4.0% | 2.1% | 2.5% | 2.6% | 1.5% | 2.8% |
| Public debt/GDP | 35% | 110% | 65% | 100% | 38% | 107% |
| Homicides/100k pop. | 6.7 | 1.6 | 0.9 | 0.8 | 1.2 | 2.3 |
| Median age | 27 years | 42 years | 45 years | 47 years | 43 years | 41 years |
| Price m2 city center | 1,100 EUR | 10,500 EUR | 7,000 EUR | 4,800 EUR | 16,000 EUR | 6,200 EUR |
| Electricity (EUR/kWh) | 0.06 EUR | 0.23 EUR | 0.35 EUR | 0.21 EUR | 0.22 EUR | 0.09 EUR |
| VAT | 10% | 20% | 19% | 23% | 7.7% | 5% |
| Top marginal tax rate | 10% | 45% | 45% | 48% | 40% | 33% |
| Cost of living (index) | 38 | 100 | 92 | 72 | 155 | 97 |
Methodological note: data comes from the IMF (World Economic Outlook, October 2025), the World Bank, UNODC, Numbeo (cost of living, December 2025), PwC (taxation) and national statistics institutes. Figures are rounded. Last updated: July 2026. This page will be reviewed quarterly. Cost of living comparisons use the Numbeo index (base 100 = Paris).
Last updated:
Sources
- IMF: World Economic Outlook, October 2025 (2025)
- UNODC: Global Study on Homicide 2024 (2024)
- Numbeo: Cost of Living Index by Country 2025 (2025)
- PwC: Worldwide Tax Summaries 2025 (2025)
- Itaipu Binacional: Annual Report 2025 (2025)
- InfoCasas: Paraguay Real Estate Price Index 2025 (2025)
- INE Paraguay: Population Projections 2025 (2025)
- GSMA: Mobile Economy Latin America 2025 (2025)
- Central Bank of Paraguay: Monetary Policy Report 2025 (2025)
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This page is written from France, sourced as carefully as possible, but I can be wrong or miss on-the-ground detail. A price that changed, outdated info, a photo to share? Every correction is credited if you want.
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