Paraguay | South America

Paraguay is a landlocked sovereign state in central South America, bordered by Brazil, Argentina, and Bolivia. Its economy is historically rooted in agriculture (soy and beef) and hydropower, but is rapidly transitioning into a regional hub for data centers and digital finance; the capital is Asunción.

Visa & Entry Policy

As of January 11, 2026, EU, UK, and US passport holders are granted visa-free entry for tourist stays of up to 90 days.

Requirements: A passport valid for at least six months from the date of entry.

Exit/Entry Fees: While the reciprocity fee for US citizens was previously abolished, travelers should verify current airport tax status (typically included in ticket prices).

Vaccination: Proof of Yellow Fever vaccination is mandatory if arriving from a country with risk of transmission (e.g., Brazil).

Language & Communication

Paraguay is constitutionally bilingual.

Guaraní: The indigenous language spoken by approximately 90% of the population; it is a core element of national identity.

Spanish: The primary language of business, government, and urban centers.

English: Proficiency is generally low, limited to high-end hospitality in Asunción and Ciudad del Este.

Currency & Payment Systems

The official currency is the Guaraní (PYG).

SPI (Instant Payment System): As of 2026, Paraguay’s SPI is the dominant transaction method, handling over 30 million transactions monthly.

QR & Digital Wallets: Interoperable QR code payments are standard in urban retail and increasingly common among MSMEs (Micro, Small, and Medium Enterprises).

Cash: Essential for rural areas, local markets, and public buses. The economy remains significantly informal outside major hubs.

National Transport Grid

Roads: Transit is almost entirely road-dependent. As of 2026, the Second International Bridge (Bridge of Integration) between Presidente Franco and Foz do Iguaçu (Brazil) is fully operational, facilitating major logistics and trade.

Aviation: Silvio Pettirossi International Airport (ASU) is the primary gateway. Domestic flights are infrequent.

Rail: There is no passenger rail service in Paraguay.

River: The Paraguay-Paraná Waterway is the nation's "lifeline" for bulk exports but is not used for passenger transit.

Digital Infrastructure

5G Rollout: Commercial 5G services launched in March/April 2026 following the 2025 spectrum auction. Primary providers are Claro and Tigo.

Hydropower & Data Centers: Leveraging surplus energy from the Itaipu Dam, Paraguay has become a major destination for AI and cloud infrastructure. The X8 Cloud Infrastructure complex, launched in early 2026, is the largest AI data center in Latin America.

Connectivity: 82% of the population is connected to the internet, with 90% of access occurring via smartphones. Starlink is the standard for rural and Chaco-region connectivity.

Climate & Seasonality

Summer (December–March): Extremely hot and humid, with temperatures frequently exceeding $40°C$. This coincides with the rainy season.

Winter (June–August): Mild but subject to "surazos" (cold fronts from the south) that can drop temperatures to near-freezing for short periods.

The Chaco: An arid, sparsely populated region in the west; prone to severe flooding in summer and extreme drought in winter.

Health & Safety

As of January 2026, travel advisories suggest Exercise a High Degree of Caution.

Safety: Street crime (phone snatching, armed robbery) is a risk in Asunción and Ciudad del Este. Avoid the "Chacarita" neighborhood in Asunción.

Health: Mosquito-borne illnesses (Dengue, Chikungunya, and Zika) are endemic. Tap water is generally not potable; bottled water is mandatory.

Emergency: Police 911; Fire/Ambulance 132.

Top 3 Major Regions & Cities

Asunción: Political and cultural capital; oldest city in the Río de la Plata region.

Ciudad del Este: Major commercial hub on the "Triple Frontier" (Paraguay, Brazil, Argentina).

Encarnación: The "Pearl of the South"; known for its river beaches and proximity to Jesuit Missions.

Local Cost Index

1L Water: 4,500 PYG ($0.58 USD)

1 Domestic Beer (0.5L): 8,500 PYG ($1.10 USD)

1 SIM Card (10GB Data): 75,000 PYG ($9.70 USD)

Facts & Legends

Paraguay is the world's largest exporter of renewable energy per capita due to its share in the Itaipu and Yacyretá dams. Local folklore features the Pombéro, a forest spirit who must be appeased with offerings of tobacco and honey. A unique cultural trait is the universal consumption of Tereré (cold-infused yerba mate), which was designated as UNESCO Intangible Cultural Heritage in 2020. Historically, the country was devastated by the Triple Alliance War (1864–1870), losing over 60% of its total population.