Best cities to live in Paraguay in 2026

Asunción, Encarnación, Hohenau, San Bernardino, Ciudad del Este and Greater Asunción: price per square metre, rent, schools, healthcare and who each city suits.

In detail

Paraguay draws Brazilians with low taxes, simple residence for MERCOSUR citizens and a lower cost of living. The choice of city then decides almost everything else: the rent, the children's school, the travel time back to Brazil and the kind of property worth buying.

This guide compares the cities where Brazilians settle most often, with the price per square metre and rent, and shows who each one suits.

How to choose a city

• Work and income. Companies, banks, offices and most formal jobs are in Asunción and Greater Asunción. People living on income from abroad or working remotely choose by quality of life.
• Family. International and bilingual schools, the largest universities and the main private hospitals are in Asunción. Encarnación has good private schools and universities.
• Distance from Brazil. Ciudad del Este sits at the bridge to Foz do Iguaçu. Asunción has direct flights to São Paulo. The south of the country connects to Ciudad del Este by Route 6.
• Climate. Summer is hot across the country, with days above 35 °C. Winter is short and mild, cooler in the south.
• Language. People speak Spanish and Guaraní. In Ciudad del Este, the border towns and the farming colonies of the east, many people speak or understand Portuguese.

Asunción: the capital, for people who work and have school-age children

Asunción is home to the country's companies, banks, embassies, international schools, universities and largest private hospitals. The 2022 census counted 462,000 residents in the capital, and the cities that adjoin it, Luque, San Lorenzo, Lambaré and Fernando de la Mora, add more than 720,000. The international airport is in Luque, next to the capital, with direct flights to São Paulo.

According to Murblz experts, in 2026 a square metre of housing in Asunción costs about US$1,600 on average. The most sought-after neighbourhoods lie along the Villa Morra, Las Lomas and Las Carmelitas axis, with shopping centres, restaurants and offices. Recoleta sits between that axis and the centre. Ycuá Satí and Mburucuyá are residential, with houses and low-rise buildings. Las Mercedes and Barrio Jara, near the centre, have the most affordable square metre. Compare the areas in Asunción neighbourhoods.

Long-term rentals yield 7.3% a year on average before tax. A 60 m² apartment in Recoleta rents for about US$930 a month. Houses cost less per square metre than apartments: US$1,380 in Las Lomas and US$1,310 in Villa Morra. Properties for sale now, with prices and rental income, are on the page of apartments for sale in Asunción.

Who it suits: families with school-age children, people working for a company or starting a business, and anyone who needs frequent flights to Brazil.

Encarnación: river beaches and a calmer life in the south

Encarnación, capital of the Itapúa department, lies on the Paraná River opposite Posadas in Argentina, linked by a bridge. The 2022 census counted 107,000 residents, and the city is about 370 km from Asunción by Route PY01. The Costanera avenue and the river beaches fill up in summer, and the city's carnival is the best known in the country. It is smaller and quieter than Asunción, with universities, private schools, shops and services for the whole south. See the Encarnación neighbourhoods.

According to Murblz experts, a square metre of apartment in Encarnación costs US$1,830 on average: US$1,910 on the waterfront and US$1,320 in the centre. A 60 m² apartment rents for US$620 a month on average and US$670 on the waterfront. Rentals yield 6.8% a year before tax, and 9.5% in neighbourhoods away from the waterfront, where the square metre is cheaper. A studio in a building with a pool costs US$50,000. See the properties for sale in Encarnación.

Who it suits: people who want a mid-sized city with a beach, retirees and families who work remotely.

Hohenau and the Itapúa colonies: a house with land and a German community

Hohenau is less than an hour from Encarnación by Route 6, in the Colonias Unidas founded by settlers of German origin, many of them from southern Brazil. The area lives from farming and cooperatives, with tree-lined streets, little traffic and houses on large plots. The district has 13,000 residents according to the 2022 census.

According to Murblz experts, the median house in Hohenau costs about US$250,000, or US$840 per built square metre. Houses up to 150 m² are around US$50,000, and those above 300 m² around US$420,000. The rental market is small, so income is calculated house by house. See the houses for sale in Hohenau.

Who it suits: people who want a house with a garden, small-town life and a school nearby, and who do not depend on a job in the capital.

San Bernardino: the lake near the capital

San Bernardino lies on Lake Ypacaraí, about an hour from Asunción. The town was founded by German immigrants at the end of the 19th century. It has 12,000 permanent residents and is the summer destination for families from the capital: houses with land and pools, gated communities, restaurants and lakeside clubs. Out of season, the town is quiet.

Who it suits: people who work remotely and go to Asunción once or twice a week, and anyone who wants a country house near the capital.

Ciudad del Este: the border with Foz do Iguaçu

Ciudad del Este sits on the Friendship Bridge opposite Foz do Iguaçu and lives from cross-border trade. It is the country's second-largest city, with 326,000 residents in the 2022 census, about 330 km from Asunción by Route PY02. Many people speak Portuguese, and there are schools and services for Brazilians. Hernandarias and the Itaipu dam are next door. The city is hot, and traffic on the bridge is heavy at peak hours. See the Ciudad del Este neighbourhoods.

Someone who lives in Ciudad del Este and works in Foz every day keeps their life in Brazil, and the Federal Revenue may challenge the definitive exit. To stop being a Brazilian tax resident, your home, family and work need to be in Paraguay in fact.

Who it suits: people with a shop, an import business or family on both sides of the border.

Greater Asunción: Luque, San Lorenzo and Lambaré

Luque, San Lorenzo, Lambaré and Fernando de la Mora form the capital's metropolitan area. Rent and the price per square metre are lower than in Asunción's prime neighbourhoods. Luque is next to the airport, and San Lorenzo is home to the main campus of the national university. The price is traffic: at peak hours the trip to Villa Morra can take more than an hour.

Who it suits: people who work in Asunción and want to pay less rent, and students.

Safety: where to live with peace of mind

Official travel advisories place Paraguay at the normal-precautions level, with no region closed to visitors. Asunción, Encarnación, Hohenau, San Bernardino and Greater Asunción lie outside the areas with heightened alerts.

Extra caution applies to the departments on the border with Brazil in the north and east: Amambay, with Pedro Juan Caballero, Canindeyú, Concepción, San Pedro and Alto Paraná, home to Ciudad del Este. The reason is organised crime linked to trafficking and smuggling across the border.

In the big cities, the precautions are those of any capital in the region: watch your phone and bag in the centre and on public transport, and park in a guarded car park. Murblz specialists recommend the neighbourhood and the building by how safe the street is, not only by price.

The cost of living in Paraguay

• Rent. A 60 m² apartment rents for about US$930 a month in Recoleta, Asunción, and US$620 in Encarnación. In Greater Asunción and central Encarnación, rent is lower.
• Currency. The currency is the guaraní. On 26 October 2026 one Brazilian real was worth about 1,064 guaraníes and one US dollar about 5,771 guaraníes. Mid-range and high-end homes and rentals are usually advertised in dollars.
• Minimum wage. The minimum wage is 3,044,000 guaraníes a month since 1 July 2026, about R$ 2,860 or US$530 at the 26 October 2026 exchange rate.
• Healthcare. IPS social insurance is mandatory for employees: the employee pays 9% of salary and the employer 16.5%, covering healthcare and pension, and children and a spouse without their own income are covered as dependants. Self-employed people and those living on investment income contribute to IPS for a pension only, without healthcare, and take out private health insurance. The main private hospitals are in Asunción.
• Property taxes. Residential rent pays 8% income tax, with a taxpayer number (RUC). The annual property tax is 1% of the assessed value, which is below the market price. On a sale, an individual pays at most 2.4% of the price.

Documents to live in any city

A Brazilian enters Paraguay with a national ID card or passport and applies for MERCOSUR temporary residence for two years. Then comes permanent residence and the Paraguayan identity card. Anyone investing from US$200,000 in income property can apply for investor permanent residence straight away.

Brazilians buy apartments, houses and urban land on the same terms as Paraguayans. Rural property within 50 km of the border is closed to anyone without permanent residence in Paraguay.

The step-by-step is in the guide how to move to Paraguay legally. Moving your tax home is covered in the guide to leaving Brazil tax residency. If you are bringing a car, read the guide to the Paraguayan company car in Brazil.

What Murblz does for you

• Choosing the city and neighbourhood by budget, work, children's school and distance from Brazil.
• Selecting properties to live in or rent out, with the seller's price, building fees and rental income.
• Checking the property and the seller, the contract and the deed with the notary.
• Residence, temporary and permanent, identity card, RUC and tax residency certificate.
• Bank account and company in Paraguay, including a car in the company's name.
• Definitive exit from Brazil, with a calendar agreed with your accountant.

The first consultation in the chat is free. Details and the cost of each step come from the consultant.

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