Is Paraguay's Bad Reputation Deserved? A Year Living in Asunción

Paraguay gets a bad rep. But after living here for over a year, is that reputation deserved? We don’t think so.

The Hidden Gem Nobody Knows About

Most people don’t even know where Paraguay is. And that’s actually part of its charm. While everyone flocks to the obvious destinations, Paraguay remains a hidden gem with incredible opportunities for those willing to look beyond the headlines.

Walking around Asunción, you’ll find beautiful landmarks like the Casa Rosada (where the president lives), cool rooftop bars, and a growing skyline that shows the contrast between the old and new Paraguay. The city has a vibe that’s hard to describe – relaxed yet energetic, traditional yet modern.

Why We Actually Moved Here

The Tax Advantage

Let’s be honest about what initially attracted us: Paraguay offers 0% tax on foreign income. For anyone running software businesses, apps, or SaaS companies, this is a game-changer. But while the tax benefits got us here, it’s what we discovered after arriving that made us stay.

The Real Cost of Living

Paraguay is incredibly affordable. Some of the nicest spots in the city are half empty – there simply aren’t that many people here yet. A country the size of Germany with only 7 million people means plenty of space, low costs, and no crowds.

Compare this to places like Medellín, which has become the “Miami of Latin America” with prices to match. Paraguay offers similar quality of life at a fraction of the cost.

Safety That Surprised Us

Coming from Colombia (which we also love), the safety difference is notable. Asunción consistently ranks as one of the safest capitals in South America. You can walk around, explore neighborhoods, and go about your day without the constant vigilance required in other Latin American cities.

Strategic Location

Paraguay is perfectly positioned in South America:

• Close to Chile
• Short flights to Buenos Aires
• Easy access to Brazil
• Not too far from Colombia

It’s an ideal base for anyone who needs to travel around the region.

The Food Scene

The asado (grill) culture here is incredible. The cuts of meat are completely different from what you’d find in New York or Europe – and at a fraction of the price. Paraguay is a major exporter of beef and vegetables, which means fresh, high-quality produce is everywhere.

Let’s Be Honest: The Downsides

We’re not going to pretend Paraguay is perfect. Here’s what you should know:

Infrastructure Challenges

• Roads: Due to lower taxes, many roads are privately maintained and can be bumpy
• Power Grid: Despite having 100% hydroelectric power (thanks to the Itaipú Dam), the local grid can be unstable with occasional blackouts
• Weather: It rains a lot, and when it does, some areas can get temporarily flooded

What It Doesn’t Have

• No beaches (it’s landlocked)
• It’s not Rio de Janeiro – if you want flashy nightlife and famous landmarks, this isn’t it
• The international community is still growing (though that’s changing fast)

The Time Zone Advantage

For anyone working with US clients or running an online business targeting the Americas, Paraguay’s time zone is perfect. You’re aligned with Eastern US time for most of the year, making calls and collaboration seamless.

Internet That Actually Works

Despite the infrastructure challenges in some areas, internet speeds are surprisingly fast – over 100 Mbps is standard in most places. For digital nomads and remote workers, this is crucial.

The Growing International Community

What we really love about Paraguay is that it’s up-and-coming. You’re not arriving to an already-saturated expat scene. The international community is growing, which means real opportunities to build connections and even businesses serving this emerging market.

The Bottom Line

Is Paraguay’s bad reputation deserved? Largely, no.

Sure, it’s not perfect. The roads could be better, the power more reliable. But for what you get – safety, affordability, tax advantages, great food, and a strategic location – the trade-offs are more than worth it.

Paraguay isn’t for everyone. If you need beaches, world-famous attractions, and a fully-developed expat infrastructure, look elsewhere. But if you’re looking for an affordable base with genuine opportunities, low costs, and a growing community of like-minded people, Paraguay deserves serious consideration.

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