Why Are So Many Brazilians Fleeing to Paraguay? The Answer Lies in Taxes, Cost of Living, and Freedom

Written by Roberta Souza

Published on 30/06/2025 at 18:00

Foto: IA

6 people reacted to this.

The “Cheap Neighbor” Who Became a Favorite of Brazilians (And the World)

In recent years, Paraguay has transformed from just a shopping destination in Ciudad del Este to become one of the most attractive countries in South America to live, start a business, and save money. And we’re not just talking about cheaper products: we’re talking about quality of life, low taxation, and a much lower cost of living.

The Secret? Taxes of Only 10%

While Brazil grapples with one of the highest tax burdens in the world — about 33% of GDP, according to the OECD — Paraguay stands out with a simplified model:

10% for individuals (IRP)
10% for businesses (IRACIS)
10% VAT (similar to our ICMS + PIS + Cofins)

This “3×10” model is one of the simplest and most transparent in the world. The result? More and more Brazilian companies are migrating their operations, and thousands of individuals are moving to a new country to reduce their costs.

ARTICLE CONTINUES BELOW

Much Cheaper Products? Yes, It’s Real

The iPhone 15, for example, can be found in Paraguay for up to 40% less than in Brazil.

The reason is simple: lower import taxes, less bureaucracy, and lower fees throughout the supply chain. Cameras, laptops, perfumes, brand-name clothes, and tech items follow the same logic. And everything comes with warranty and provenance — especially in regions like Asunción and Ciudad del Este.

The average cost of living in Paraguay can be up to 50% lower than in Brazilian capitals such as São Paulo, Brasília, or Porto Alegre. Rent, food, transportation, and services are cheaper — and the quality of life is surprising:

Pleasant subtropical climate
Growing safety
Welcoming population
Diverse gastronomy
Ease of integration for foreigners
Real, Dollar, and Guarani: all are accepted

Although the official currency is the Guarani, the real and the dollar are accepted in practically all commercial areas of the country, especially in border cities. This facilitates tourism and commerce for Brazilians who live nearby or cross regularly.

Brazil vs. Paraguay: What Really Changes?

Aspect	Brazil	Paraguay
Taxes	High and complex	Low and simple (10%)
Bureaucracy for Business	High and time-consuming	Reduced and digitized
Cost of Living	High in major cities	More accessible
Accepted Currency	Real	Guarani, real, and dollar
Imported Product (e.g., iPhone)	Highly taxed	Price almost cut in half
Time to Open a Company	14 days (national average)	72 hours (average in Paraguay)

Why Did Paraguay Become a Real Destination?

Over 254 thousand Brazilians live there
It is the 3rd country with the most Brazilians in the world
It is a refuge for startups, importers, merchants, and digital nomads
It has a business environment that attracts even Europeans and Americans

Is It Worth Moving?

It depends on your profile. For those looking to start a business, save money, or simply escape Brazilian complexity, Paraguay can be an oasis of opportunities. Whether living on the border, starting a company, or investing in products, the cost-benefit becomes clearer.

And what do you think of our neighbor? Would you move there? Leave your opinion in the comments!

1 Comment

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Fernando de Oliveira Diniz

#146538

30/06/2025 19:56

Espero me aposentar no Paraguai chega daqui de São Paulo capitalismo puro quem se beneficia e só poliicos podres…

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Why Are So Many Brazilians Fleeing to Paraguay? The Answer Lies in Taxes, Cost of Living, and Freedom

The “Cheap Neighbor” Who Became a Favorite of Brazilians (And the World)

The Secret? Taxes of Only 10%

Much Cheaper Products? Yes, It’s Real

Why Did Paraguay Become a Real Destination?

Is It Worth Moving?

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Why Are So Many Brazilians Fleeing to Paraguay? The Answer Lies in Taxes, Cost of Living, and Freedom

The “Cheap Neighbor” Who Became a Favorite of Brazilians (And the World)

The Secret? Taxes of Only 10%

Much Cheaper Products? Yes, It’s Real

Why Did Paraguay Become a Real Destination?

Is It Worth Moving?

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

Brazil will harvest a record crop of up to 357 million tons of grains, but it does not have the capacity to store a large part of it. The storage deficit has reached the highest level in history and is equivalent to almost the entire production of Argentina.

Four times faster than the Concorde, capable of taking passengers from New York to London in less than an hour at Mach 5.5, and with an engine that switches from turbojet to ramjet mid-flight at Mach 3.5, the Hermeus Quarterhorse went from paper to its first flight in just 19 months.

Under nearly 2 kilometers of ice in Antarctica, scientists have discovered an ancient landscape sculpted by rivers up to 60 million years ago, the size of Wales, preserved as a time capsule that could help predict the advance of ice towards the ocean.

She started by collecting oyster shells from restaurants and today she has already accumulated more than 10 tons to restore reefs, recover coastal habitats, and demonstrate how a common waste can become a tool for ocean conservation.

SpaceX will dock a $843 million vehicle to the International Space Station to push a nearly 420-ton laboratory against the atmosphere and make the debris fall in a controlled manner into the ocean.

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