sOUTH AMERICA
12 min read
A golden sunset over the Paraguay River sets the tone for your life when you live in Paraguay—peaceful, affordable, and full of quiet charm. Whether you’re retiring, working remotely, or chasing your next adventure, these 10 cities and towns offer a lifestyle that’s low on stress and high on freedom.
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The best places to live in Paraguay offer a range of experiences, whether you prefer a bustling city or the serene beauty of untouched rural areas.
In this guide, we cover everything from the lively capital to charming country towns. Each location features established communities and highlights unique facets of Paraguayan life.
While Paraguay may not have many large metropolitan areas, it makes up for it with picturesque countryside and quaint small settlements. On top of that, Paraguay offers a significantly lower cost of living compared to many other South American countries, making it an appealing choice for retirees, remote workers, and entrepreneurs looking to stretch their budgets further.
Whether you’re searching for your next home or exploring opportunities as an entrepreneur, this list will help you find the right places to live in Paraguay that suit your lifestyle and goals.
Table of Contents
1. Asunción: One of the Top Places to Live in Paraguay
| Population:3,627,000 |
Asunción, the capital of Paraguay, is a fantastic place to live, offering a vibrant mix of restaurants, coffee shops, cultural events, and nightlife.
Families will appreciate the many private and international schools available, making it a great city for kids. Plus, it’s a modern city that prioritizes safety, with plenty of parks and green spaces to relax in, all while enjoying a friendly community.
In the 20th century, Asunción expanded rapidly, resulting in a variety of neighborhoods, each with its own charm. Instead of a traditional downtown, you’ll find the residential area of Villa Morra about 4 km (2.50 mi) from the city center. This area is buzzing with life, and is also close to the popular shopping malls of Shopping Del Sol and the Paseo La Galería.
Asunción serves as Paraguay’s gateway to the world, featuring the international airport and the country’s primary river port. More than half of the entire population of Paraguay resides in the Greater Asunción area, which is the commercial center of the nation.
2. Luque: A Great Option Among Places to Live in Paraguay
| Population: 798,244 |
Another one or our best places to live in Paraguay is Luque, it’s the perfect mix offering a taste of traditional Paraguayan culture alongside modern conveniences. Located just a stone’s throw from Asunción, you can easily hop on local buses to access all the services you need.
The city features several parks and green spaces, providing a peaceful escape from the busy urban environment. With many schools and universities around, Luque is also a fantastic spot for families.
As you transition from Asunción to Luque, you’ll notice a charming change in architecture—much of it retains its colonial and classical styles, which adds to the city’s character. Plus, Luque is home to Paraguay’s main international airport, Silvio Pettirossi International Airport, making travel a breeze.
When it comes to shopping, Luque has a unique vibe with artsy shops and older establishments that offer a fun treasure-hunting experience for hidden gems.
Evening view of the Jesuit Ruins of Trinidad, a UNESCO World Heritage site, showcasing one of Paraguay’s most historically significant and beautiful locations.
3. Ciudad del Este: A Popular Place to Live in Paraguay
| Population: 320,782 |
Ciudad del Este is a vibrant city in southeastern Paraguay, located on the Paraná River, which joins the Paraguay River. As the capital of the Alto Paraná Department, it’s the second largest city in Paraguay.
Originally a trading post for smugglers, Ciudad del Este is now a cultural melting pot, where Spanish, Guarani, and Portuguese are commonly spoken. The city is a free port famous for its markets and it’s just a short trip from the stunning Iguazú Falls.
We consider Ciudad del Este one of the best places to live in Paraguay, however be mindful of the higher crime rates due to the fact that it’s a border town.
The city offers everything from street markets to modern malls, as well, you can find electronic goods at lower prices than elsewhere in the country.
The Friendship Bridge connects Ciudad del Este to Foz do Iguaçu in Brazil, creating a lively atmosphere with a large ex-pat community supported by multiple consulates.
The construction of the Itaipu Dam, once the world’s largest hydroelectric dam, has fueled the local economy and led to a building boom. Residents enjoy various leisure activities, including casinos, nightclubs, and movie theaters.
A particularly nice area near Lago de la República offers a peaceful escape from the city, with walking and bike paths, green spaces, and several restaurants and bars with lake views.
With many beautiful natural areas nearby, especially along the borders of Brazil and Argentina, you won’t need a car here—everything is easily accessible on foot.
Ciudad del Este is a lively place filled with opportunities, making it perfect for those seeking an active lifestyle.
4. San Lorenzo: Family-Friendly Places to Live in Paraguay
| Population: 227,876 |
San Lorenzo is a lively city located in the Central Department of Paraguay, just a short distance from Asunción. As the third most populous city in the country, it’s a welcoming place with friendly residents and low crime rates, making it a great spot to call home.
Often referred to as “Ciudad Universitaria,” San Lorenzo is home to the National University of Asunción campus, which adds to its youthful vibe. You’ll find plenty of shops and restaurants around, along with a vibrant nightlife scene.
It’s an excellent city for families, boasting numerous schools and ample green spaces for kids to enjoy. Plus, it’s worth noting that San Lorenzo is the seat of the Roman Catholic Diocese of San Lorenzo, adding to its cultural significance.
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Locals catch fish in popular spots such as the Paraguay River, Paraná River, Lake Ypacaraí, and the Itaipú Reservoir.
5. Encarnación: Riverbank Charm and A Top Place to Live in Paraguay
| Population: 107,000 |
What makes Encarnación one of the best places to live in paraguay is that it’s a delightful small city located along the banks of the Rio Paraná in southeastern Paraguay, directly across the river from Posadas, Argentina. It’s renowned for its lush greenery, abundant trees, parks, and gardens.
Rich in Indigenous history and culture, the city boasts several museums and historical sites that reflect its heritage. The completion of the Yacyreta Apipe dam a few years back has sparked modernization throughout the city.
Now, you can enjoy a modern Costanera walkway along the waterfront, three beautiful beaches, new infrastructure, and a variety of international restaurants and hotels. These upgrades have made Encarnación a go-to destination for summer vacationers, drawing visitors who might have previously chosen San Bernardino. Plus, the city’s carnival at the end of the season is the largest and most colorful in Paraguay.
Outside of summer, the beaches and facilities tend to be quieter. If you’re thinking about crossing into Argentina, it’s super easy—there’s a bridge over the Rio Paraná that leads straight to Buenos Aires.
Encarnación is surrounded by rolling hills and quaint countryside villages, giving it a hidden gem vibe. The cooler air and European-influenced farms add to their inviting, old-world charm. With modern amenities and picturesque villages nearby, it’s a wonderful place to call home, whether you prefer an active lifestyle or a more laid-back way of living.
6. Villarica: A Hidden Gem Among Places to Live in Paragua
| Population: 74,355 |
Villarica, nestled in the hills of central Paraguay, is known for its high standard of living and picturesque charm. With cobbled streets, orange trees, and well-preserved colonial architecture, it’s one of the country’s most beautiful towns.
The cooler temperatures and good air quality make it a refreshing retreat from the heat, while its residents enjoy some of the highest incomes in Paraguay.
The town has a rich cultural history, boasting a university that has produced many influential figures in Paraguayan arts. Villarica is also home to vibrant social groups, festivals, and beautiful parks and lakes for relaxation.
The German heritage is evident in the local architecture and culinary scene with restaurants and bakeries serving up delicious meals. Surrounded by lush woods and sugar cane plantations, the nearby Ybyturuzu mountain range offers hiking trails that lead to stunning viewpoints and hidden waterfalls. With its welcoming community, Villarica is a wonderful place for newcomers to feel at home.
A neighborhood in Villaricca, Paraguay.
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7. Areguá: A Charming Town as One Of The Places to Live in Paraguay
| Population: 68,000 |
If you’re after a bustling city filled with excitement, Areguá might not be your spot. But if you’re an artist or retired and appreciate a slower pace, it could be just what you’re looking for.
Located about 30 km (18 mi) from Asunción, this charming town is famous for its colonial mansions, picturesque, cobbled streets, and stunning views of Lake Ypacaraí. Perched on a hill with an old church at its center, Areguá exudes a laid-back vibe that’s all about enjoying nature.
The lakeshore offers plenty of walking paths that lead into the woods or right to the water, perfect for exploring, fishing, or taking leisurely boating trips. Areguá has long been an artistic hub, attracting painters, sculptors, and other creative souls for centuries. This vibrant artistic community continues to draw people who come to work on their art, while others simply enjoy the atmosphere.
You’ll find a variety of excellent restaurants in town, as well as great craft shops and a lively market. While art gives Areguá its charm, the local economy is primarily driven by agriculture. The surrounding area boasts rich farmland and clean air, with strawberries being the standout crop. During strawberry season, you can find fresh berries for sale on nearly every street corner and in local shops.
8. Caacupé: Ideal Place to Live in Paraguay for Families
| Population: 56,864 |
Caacupé is one of the best places to live in Paraguay because it’s the ideal spot for those looking to escape the hustle and bustle of city life while still being close to essential amenities. Just 50 km (31 mi) from Asunción, this charming town is set in beautiful countryside and serves as Paraguay’s religious center.
The highlight of Caacupé is the impressive Basilica of Our Lady of the Miracles, home to a revered carving of the Virgin Mary. While the town usually has a tranquil vibe, it comes alive around December 8th during the Feast of the Immaculate Conception, attracting thousands of pilgrims. Once the festivities wrap up, Caacupé returns to its peaceful state, but the influx of visitors has led to improved infrastructure, including wider, cleaner streets and spacious plazas for shopping and recreation, as well as modern cafés and restaurants offering European cuisine.
The ex-pat community is well-established and spreads across the picturesque hills and pastures surrounding the town. These hills are perfect for leisurely walks, shaded by trees and offering great air quality. Caacupé’s countryside charm draws people seeking a quieter lifestyle, though families should consider that private schools primarily teach in Spanish. Fortunately, there are many lovely spots to build your dream home, all within easy reach of both Caacupé and Asunción.
Video courtesy of Simons Paraguay
9. Piribebuy: A Peaceful Place to Live in Paraguay
| Population: 28,000 |
If you’re looking for a peaceful escape from the hustle and bustle, Piribebuy is one of the best places to live in Paraguay. Known for its charm, many Paraguayans own holiday and second homes here, even if they only visit a few times a year.
Nestled in the hills and just an 80 km (50 mi) drive from Asunción, Piribebuy feels untouched by city life. The area boasts stunning natural scenery, from palm-covered hills to beautiful waterfalls and clear streams, making it a popular retreat for those wanting to unwind. The woodlands along the Piribebuy River offer plenty of shade for hikers and nature lovers, and the air is cooler and fresher than in the lowlands.
You’ll find an abundance of wildlife in the lush surroundings, with many streams flowing clear from their highland sources. There are plenty of open spaces and parks in the area, like Chololo and Pinamar, which have turned Piribebuy into a cozy vacation spot, complete with family-owned restaurants and lodging.
The town is known for its lovely colonial-era buildings and serves both tourists and locals in the surrounding countryside. With so many streams nearby, it’s common to find properties that come with their own source of water. The community here is small and spread out, surrounded by vast green spaces, which adds to the relaxed vibe of Piribebuy.
Asunción is the capital and largest city of Paraguay, situated on the eastern bank of the Paraguay River, one of the best places to live in the country.
10. San Bernardino: Lakeside Place to Live in Paraguay
| Population: 20,491 |
San Bernardino, often referred to as San Ber, is a picturesque lakeside town in Paraguay that has long been known as the country’s summer capital. Just 50 km (31 mi) from Asunción, it’s a popular getaway for those looking to escape the heat and enjoy its beaches and amenities which is why it is considered one of the best places to live in Paraguay.
During the summer months from December to February, San Bernardino comes alive with tourists taking advantage of its beautiful beaches, nature walks, and lively festivals. The tourism industry really drives the local economy, leading to an array of hotels, restaurants, and expansive sandy beaches along Lake Ypacaraí, the largest lake in Paraguay, giving it a resort-like feel.
Originally established as a German colony in the late 1800s, San Bernardino still has a strong German presence, and many residents work to preserve its heritage. The ex-pat community tends to live in the wooded areas around the city, offering a country feel while still being close to Asunción’s amenities. Each week, the local community runs a unique market in San Bernardino, featuring clothes, homemade food, crafts, and household goods. It’s a clean, modern spot with a beach resort vibe, making it a wonderful place to experience Paraguayan culture while enjoying a touch of European charm.
Final Thoughts on The Best Places To Live In Paraguay!
Choosing where to live in Paraguay can be a challenging decision, as it really depends on what you’re looking for in a city or town.
If you’re drawn to the excitement of a bustling metropolis, Asunción or Ciudad del Este might be just what you need, offering vibrant nightlife, diverse cultural experiences, and plenty of amenities.
On the other hand, if you prefer a more relaxed lifestyle surrounded by nature, Encarnación could be the perfect fit, with its beautiful lakeside views and charming atmosphere.
No matter which area you decide to call home, we hope our guide to the 10 best places to live in Paraguay has made your decision a bit easier. Each location has its own unique charm and offers different experiences, so take your time exploring the places to live in Paraguay that best suit your lifestyle.
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