Tucked into Paraguay’s southern border, Encarnación sits quietly on the banks of the Paraná River. Far from the bustle of Asunción, the nation’s capital, yet increasingly on the radar of newcomers seeking affordability, charm, and a slower pace of life. Known locally as The Pearl of the South (La Perla del Sur), this compact riverside city blends natural beauty with a “small town” feel and cross-border convenience in a way few South American cities can match.
Time for The Asunción Times to travel, and explore Encarnación!
Getting to know Encarnación
Encarnación is Paraguay’s third-largest city, estimated at 100,000 residents and around 170,000 for the Gran Encarnacion metropolitan area. Encarnación is the capital of the Itapúa Department and accounts for nearly a quarter of the department’s population.
It faces the Argentine city of Posadas across the river, connected via the San Roque González de Santa Cruz Bridge. This strategic location gives residents easy access to services, shopping, and experiences in both countries, an everyday border-hopping lifestyle that’s both practical and culturally enriching.
The city has earned a reputation for being cleaner and more organised than most Paraguayan urban centers. Its riverside promenade, the Costanera, is lined with palm trees, offering scenic views, bike paths, and some of the best urban beaches in the landlocked country. Every summer, Encarnación transforms into a holiday hub, attracting Paraguayans and Argentinians alike. The city also hosts the largest Carnival celebration in Paraguay, a colourful, music-filled event that draws thousands of visitors each year.
Exploring Encarnación comes with a humid subtropical climate, with hot summers, mild winters, and regular rainfall. A breeze off the river moderates the heat, while green spaces contribute to air quality and aesthetics.
Why newcomers are paying Attention
Affordability is a key advantage in Encarnación. A modern one-bedroom near the city center rents for US$300–US$400 per month, while simpler units just outside the center go for US$180–US$300.
“I found that the price of apartments, sometimes in even better condition, was lower here than in Asunción,” says Esther Bachand, a French-Canadian newcomer who recently moved and is exploring Encarnación, after spending time in Paraguay’s capital. She found in Encarnación better value for money for her needs.
Prices are lower than in most Western cities and even Asunción, where similar apartments often cost US$300–US$430. As in any city, rent varies by neighbourhood and apartment quality, newer, modern units with European-style finishes tend to cost more.
Groceries, dining out, and transportation are equally budget-friendly. Many newcomers take advantage of dual-country living, residing in Paraguay while accessing goods and services in Argentina, where selection and variety can be greater.
Retirees and digital nomads paying attention
For retirees and digital nomads, Encarnación offers an appealing balance between cost and quality of life. Its compact size makes it highly walkable, crime rates are low by regional standards. Add to that the picturesque environment and a growing number of cafés, shops, and modern developments, and it is easy to see the draw.
For Esther, many reasons pushed her to settle in the south of the country. “It is close to the water, clean, has better roads, and I find more calm and beautiful than Asunción,” she says. While she acknowledges that the capital has more to offer in terms of administrative services, restaurants, and shopping malls, she adds: “I think you can find everything you need in Encarnación.”
The pros of living in Encarnación
- Low cost of living: Compared to Europe, North America, and even Asunción, Encarnación offers a more affordable lifestyle.
- Clean and safe: Encarnacion is known as one of Paraguay’s cleanest and safest cities.
- Natural appeal: River beaches, green spaces, and scenic vistas contribute to a serene environment.
- Walkability: With most amenities within easy reach and a well-designed Costanera, Encarnación is a highly walkable city where owning a car is more of a convenience than a necessity
- Development in progress: The development of new malls, residential condos, expanded routes at Teniente Ramón Amín Ayub González International Airport, a modern hospital, and upgraded public spaces all point to Encarnación’s steady urban growth and modernisation.
Challenges to consider
Yet Encarnación isn’t without its downsides, especially for families, younger newcomers, or those with complex needs.
- Few international schools: Families with children will find limited schooling options in Encarnación. Unlike Asunción, the city lacks schools offering a recognised international or fully bilingual curriculum, making it less suitable for those seeking globally oriented education.
- Limited social scene: The foreign community in Encarnación is still small compared to Asuncion. Cultural events and nightlife are modest compared to larger cities.
- Bureaucratic hurdles: While Paraguay’s residency process is relatively accessible, handling the paperwork outside the capital can be tricky. Many newcomers start their applications in Asunción before relocating to cities like Encarnación.
- Transport andiInfrastructure: Public transport access is little, and sometimes unreliable.
Encarnación versus Asunción: Which to choose?
When weighing Encarnación against Paraguay’s capital, several key contrasts emerge. Asunción, with a population over 600,000, offers more in terms of services, international schools, medical care, and social life. But it also comes with higher costs, heavier traffic, and more urban chaos.
Exploring Encarnación combines a relaxed atmosphere with a low cost of living. With affordable rents, minimal congestion, and the charm of riverside life, it is an appealing choice for those seeking peace and simplicity in a distinctly South American setting.
Still, Asunción has its advantages. A larger international community means easier networking and social integration. The presence of embassies, business centers, and international organisations also makes it the natural choice for professionals or those who need access to specialised resources.
Ultimately, the choice between Encarnación and Asunción comes down to what you value most, whether it is the vibrant energy and conveniences of a capital city or the slower pace and affordability of a charming riverside town. Both offer unique opportunities to experience Paraguay’s rich culture and warm hospitality.
