5 Common Misconceptions About Paraguay: Busting 5 Myths About South America’s Best-Kept Secret

Sara Moura August 9, 2025 Travel 0

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There are so many common misconceptions about Paraguay… Let me tell you about it.

When most people think of Paraguay (if they think of it at all) they often picture a small, landlocked country overshadowed by its larger neighbors, Brazil and Argentina. I was one of those people.
For many outsiders, they assume it’s a place frozen in time, rural and quiet, with little connection to the modern world.

But step foot in Asunción today, and that image dissolves instantly. The city pulses with life. Sleek new skyscrapers rise beside leafy plazas, bustling cafés hum with conversation, and opportunity is everywhere. Paraguay is in the midst of a transformation that’s turning it into one of South America’s most intriguing destinations for living, working, and investing.

Before you dismiss it as “just another small Latin American country,” let’s clear the air. I will show you five of the most common misconceptions about Paraguay and the surprising realities you’ll discover when you see it for yourself. Trust me.

5 Common Misconceptions About Paraguay:

Misconception No1:

"Paraguay is underdeveloped and stuck in the past"

Reality:

Paraguay, and especially Asunción, has undergone a major transformation in recent years. The city has seen a real estate boom, with new modern high-rises, luxury condos, and tech-focused office spaces popping up across neighborhoods like Villa Morra, Carmelitas, and Ykua Satî. There’s also a surge of foreign investment and digital nomads settling in the city for its quality of life, lifestyle options, and great infrastructure.

Misconception No2:

"Paraguay is unsafe or politically unstable"

Reality:

While no place is without its issues, Paraguay is relatively safe, especially compared to some of its regional neighbors. Asunción in particular offers safe, walkable neighborhoods, and a stable political environment. The country has experienced steady economic growth and maintains one of the lowest tax burdens in Latin America, contributing to business confidence.

Misconception No3:

"Paraguay is culturaly overshadowed by larger Latin countries"

Reality:

Paraguay has a distinct and rich cultural identity, including its Guaraní heritage, which is officially co-equal with Spanish. Its music, food, and festivals are deeply unique. There’s a growing pride in national traditions, alongside modern artistic expressions, especially in Asunción’s contemporary art and music scenes.

Misconception No4:

"Paraguay is a rural, agrarian country with little urban life"

Reality:

While agriculture is an important part of the economy, Paraguay has a vibrant urban population. Asunción is a hub of commerce, culture, tech startups, and design. Cafés, coworking spaces, rooftop bars, and boutique hotels are growing, and international franchises and high-end retail are increasingly common.

Misconception No5:

"Paraguay lacks opportunities for foreigners or expats"

Reality:

In fact, Paraguay is increasingly attracting foreign entrepreneurs, investors, and remote workers. Its cost of living, lenient residency policies, strategic central location, and welcoming attitude make it a hidden gem for expats looking for emerging opportunities in South America.

Paraguay (especially Asunción) truly surprised me. I came in convinced it would be a quieter, less dynamic place—but I’m absolutely falling in love with its energy, the booming investment opportunities, and how genuinely warm and friendly everyone is. And the food… I’ll tell you about that later, but trust me, there are options from every part of the world—even a UFO-inspired restaurant.

The city’s skyline is set to transform even further with exciting projects like the Foster + Partners-designed high-rise office tower for Sudameris Bank, which is currently in development and promises to bring world-class architecture to Asunción’s business district. Meanwhile, the More Mariscal project near Shopping Mariscal is shaping up to be an incredible urban hub, combining shops, restaurants, and modern amenities that will enhance one of the city’s liveliest areas.

To understand why these common misconceptions about Paraguay persist—and why they need to be reconsidered—it’s important to look beyond Asunción to the country’s diverse regions and natural beauty.

Places like Encarnación and others around the country are wonderful too, offering vibrant local culture. Paraguay also boasts incredible natural and wildlife areas—unique spots you won’t find anywhere else—that are definitely worth exploring.

Paraguay’s rising profile as a tourist destination—recently topping the Q1 2025 tourism rankings—adds even more momentum to its story. This isn’t just a hidden gem; it’s a vibrant hotspot for growth, culture, and opportunity, waiting to be discovered by anyone willing to look beyond the clichés.