Opening a Coworking Space in Asunción: Business Plan, Location, and Profitability
Asunción is undergoing a quiet transformation. The city is shifting from a traditional office economy, where employees commute to their 9-to-5 jobs in unremarkable buildings, to a flexible work economy: freelancers work from cafes, startup founders rent an office for three months, executives telework three days a week, and digital nomads stay for two months before moving on. Three forces are simultaneously fueling this movement. The influx of expatriates and nomads, several hundred to a few thousand per year, who are remote professionals looking for temporary professional space, not a three-year lease. The rise of Paraguayan freelancing, with young developers, designers, and marketing specialists working for international clients from apartments without dedicated office space. And the growth of local startups, which cannot afford a private office but need an address and a work environment.
The coworking market in Asunción remains nascent: ten to twenty spaces in 2026, compared to several hundred in Buenos Aires and several dozen in Lima or Bogotá. The country is at the very beginning of the curve, which gives a real advantage to serious early entrants. For a French-speaking entrepreneur, opening a coworking space offers a triple benefit: a profitable model, with margins of 30 to 50% on recurring revenue; a central position in the expatriate and entrepreneurial community, which benefits all your other projects; and, if you purchase the property, a real estate asset that appreciates alongside the business. This guide covers the market, business model, location, costs, and factors that determine success.
The Coworking Market in Asunción in 2026
Current Situation
| Indicator | Situation |
|---|---|
| Number of Spaces | Ten to twenty spaces, including pure coworking spaces and hybrid formats: cafes with work zones, hotels offering workstations, incubators with shared offices. This is few for an agglomeration of about 2.5 million inhabitants. The local ratio is around one space per over one hundred thousand inhabitants, compared to one per a few tens of thousands in major European or North American cities. The market is emerging, not saturated. |
| Existing Offer Profile | The offer is driven by local initiatives, generally spaces of 50 to 200 m² offering ten to thirty workstations with functional equipment: Wi-Fi, furniture, coffee. Some addresses stand out for their size and quality, with meeting rooms and community animation, in an intermediate position. However, no space meets the international standard of major coworking chains. The premium segment is open. |
| Pricing |
|
| Occupancy Rate | Between 55 and 75% for well-positioned spaces, up to 80 or 85% in the second or third year when location, design, and community are well-established. Poorly positioned spaces plateau at 30 or 50%, below the break-even point of around 55 to 65%. Beyond this threshold, each additional member almost entirely contributes to the profit, as overheads are fixed. The entire model's economics hinge on this rate. |
| Growth | Demand is growing by 15 to 25% per year, driven by the arrival of expatriates, the development of freelancing, the growth of startups, and the permanent adoption of teleworking. The number of spaces is expected to double by the end of the decade. |
Customer Segments
| Segment | Estimated Size | Budget | Main Expectations |
|---|---|---|---|
| Paraguayan Freelancers | Several thousand independent professionals in the metropolitan area, a fraction of whom, probably 10 to 20%, would be willing to pay for a workspace, representing several hundred to a few thousand potential clients. | ~80 to 200 USD per month. Price-sensitive segment, with irregular incomes. | Fast and stable Wi-Fi above all: these members work online and do not tolerate any outages. Secure electricity, air conditioning, essential during the Asunción summer, and decent coffee, consumed several times a day. Finally, community: this is why a freelancer pays for a desk rather than staying at home. |
| Digital Nomads and Expatriates | A few hundred to two thousand people present at any given time, with constant rotation: one to six months for nomads, several years for established expatriates. | ~150 to 400 USD per month. Income in foreign currency, higher budget, and willingness to pay for quality. | Careful design: these members have visited spaces in Lisbon, Bali, or Medellín and compare. Wood, plants, natural light, comfortable seating, terrace. An international community animated by regular events. And contractual flexibility: monthly subscription without commitment, because they themselves do not know if they will still be there in three months. |
| Startups | Several hundred active entities in the metropolitan area. Local incubators support several dozen each, and those that emerge seek an office suitable for teams of two to eight people. | ~300 to 800 USD per month for a private office with two to four desks, representing a 30 to 40% saving compared to an equivalent traditional office once furniture and charges are included. | Closed offices for client calls and confidentiality. Presentable meeting rooms for receiving investors and partners, with screens and reliable connections. And virtual office services, a high perceived value service with marginal cost. |
| Telecommuting Employees | Several thousand executives teleworking two to three days a week, a now common practice in Paraguayan companies. | ~100 to 250 USD per month, sometimes covered by the employer, or 15 to 25 USD per day pass. Converting these passes into subscriptions is one of the ongoing commercial objectives. | Proximity to home: this segment does not cross the city. This is the strongest argument for a second space in another neighborhood rather than an expansion. And quietness, with soundproof booths for video conferences, without which this audience will not stay. |
| Companies, Satellite Offices | Several dozen to two hundred companies likely to accommodate five to ten employees without committing to a commercial lease. | ~500 to 2,000 USD per month. High ticket, long engagement of six to twelve months: this is the most profitable segment of the model. | An impeccable professional image, as the company receives its clients there. Real confidentiality: opaque and soundproof partitions, locks, no glass walls exposing screens and conversations. And an all-inclusive package, without additional billing. |
Which Coworking Format to Open
| Model | Target | Area | Investment | Target Monthly Revenue |
|---|---|---|---|---|
| The Neighborhood Coworking Space: a small space in a residential area, fifteen to twenty-five desks, lounge atmosphere, warm design. The local office, where you can walk. | Freelancers, teleworkers, and expatriates in the neighborhood | ~80 to 150 m² | ~20,000 to 50,000 USD | ~3,000 to 7,000 USD |
| The Community Coworking Space: thirty to sixty desks, mixing hot desks, dedicated desks, and private offices, with a meeting room, event space, equipped kitchen, and outdoor area. Community animation is the core of the concept. | Mix of freelancers, nomads, startups, and small businesses | ~200 to 400 m² | ~50,000 to 120,000 USD | ~8,000 to 20,000 USD |
| The Premium Coworking Space: sixty to one hundred twenty desks and more, internationally standard design, private offices for companies, equipped rooms for video conferencing, phone booths, quality coffee, parking. The only space of this level in Paraguay. | Companies, executives, expatriates with a comfortable budget, funded startups | ~400 to 1,000 m² and more | ~120,000 to 350,000 USD | ~20,000 to 50,000 USD and more |
Our recommendation. For a first project, the community format is the right choice. The investment remains manageable, the revenue potential justifies the risk-taking, and the mix of profiles precisely creates the value that each segment seeks. The neighborhood coworking space is often too small to cover its fixed costs, and the premium format requires cash flow, experience, and a reputation that one does not have at the start. The latter is prepared in years three to five, possibly as a second location.
Location
| Neighborhood | Advantages | Limitations | Indicative Rent |
|---|---|---|---|
| Villa Morra | The reference neighborhood for expatriates, with the highest concentration of French and English speakers in the city. Restaurants, cafes, and shops within walking distance, allowing members to have lunch and shop without a vehicle. Demand is structurally strong here. | The highest rents in Asunción, and a heavy burden for a 300 m² space. Some spaces are already established in the area. | ~12 to 22 USD/m² |
| Carmelitas | Nightlife district, but also an upscale residential area during the day. The liveliness, terraces, and cultural offerings make it a sector that nomads particularly appreciate. The neighborhood's atmosphere becomes a selling point in itself. | Rents comparable to Villa Morra. Noise can be an issue depending on the exact location of the premises, as immediate proximity to bars is not ideal for the general quality of the building. | |
| ~12 to 20 USD/m² | |||
| Aviadores del Chaco and Business Area | The developing business district, with office towers, banks, and corporate headquarters. This is where corporate clients are located, seeking a satellite office near their contacts. This positioning allows for significantly higher prices. | Little neighborhood life: the area is busy during the day and empties out in the evenings and on weekends. The community here is less dense than in residential areas. High rents. | ~14 to 22 USD/m² |
| Santa Teresa | Intermediate area, with rents 20 to 30% lower than in Villa Morra, in a rapidly developing sector where new buildings are emerging. Good compromise for a mid-range positioning targeting freelancers and startups. | Less prestige of address, which matters to corporate clients but is secondary for freelancers, who are more sensitive to the price-quality ratio. | |
| ~8 to 15 USD/m² | |||
| University Area | Proximity to a large student population, which forms the pool of future freelancers and entrepreneurs. Lowest rents in the selection. | Limited purchasing power: this demographic pays 50 to 100 USD per month or a few dollars per day, which significantly compresses the margin. Risk of drifting towards a study place rather than a workplace, which deters professionals and businesses. | |
| ~6 to 12 USD/m² |
In practice. For a community format, Villa Morra or Carmelitas offer the best equation: demand is densest there, and the environment is part of the offer, allowing the former to be charged at the price of the latter. For a premium format, Aviadores del Chaco is essential, as the corporate clientele is already established there. For a small neighborhood space, Santa Teresa offers the best rent-to-potential ratio.
The Business Model: Community Format with 40 Desks
Investment
| Item | Estimated Cost |
|---|---|
| Company creation, patents and licenses | ~2,500 to 4,000 USD |
| Premises: three months' advance rent and two months' deposit, based on 250 m² in Villa Morra | ~18,750 USD |
| Fit-out: renovations, partitions, electricity, air conditioning, furniture, ergonomic chairs, lighting, decoration, kitchen and professional coffee machine, two to three soundproof booths. Treat as an investment, not an expense: a successful space fills faster and can be charged at a higher rate. | ~30,000 to 60,000 USD |
| Technology: fiber optic, professional router, backup connection, badge access control for continuous opening, meeting room screens, member and booking management software | ~5,000 to 12,000 USD |
| UPS and generator, to absorb power outages | ~2,000 to 8,000 USD |
| Meeting rooms: one to two rooms equipped with table, chairs, screen, camera, and microphone | ~5,000 to 12,000 USD |
| Launch marketing: website, professional photographs, business listing, social media, opening party | ~3,000 to 8,000 USD |
| Working capital for six months, until occupancy increases | ~20,000 to 35,000 USD |
| Total | ~85,000 to 160,000 USD |
Revenue and Profitability
The following table is a working hypothesis illustrating the mechanics of the model, particularly the role of the occupancy rate. It is neither a forecast nor a guarantee of results: the fill rate depends on the chosen location, the quality of animation, and the competition established at the time of opening.
| Item | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Average Occupancy | ~45%, or 18 desks | ~68%, or 27 desks | ~80%, or 32 desks |
| Monthly Subscriptions, weighted average rate | ~54,000 USD | ~89,100 USD | ~115,200 USD |
| Day Passes | ~7,200 USD | ~10,800 USD | ~12,000 USD |
| Meeting Rooms | ~12,000 USD | ~18,000 USD | ~24,000 USD |
| Virtual Offices | ~6,000 USD | ~9,600 USD | ~12,000 USD |
| Events and Ancillary Services | ~4,000 USD | ~8,000 USD | ~12,000 USD |
| Revenue | ~83,200 USD | ~135,500 USD | ~175,200 USD |
| Expenses: rent, salaries for community manager, reception and cleaning, utilities and internet, consumables, marketing, accounting, insurance, software, maintenance | ~72,000 USD | ~85,000 USD | ~95,000 USD |
| Pre-tax profit | ~11,200 USD | ~50,500 USD | ~80,200 USD |
| IRE 10% then IDU 8% on distribution | ~1,930 USD | ~8,690 USD | ~13,800 USD |
| Post-tax profit | ~9,270 USD | ~41,810 USD | ~66,400 USD |
What this model shows. The first year is a race to fill the space, and the first six months are the most challenging part: the space gradually fills up as the first members arrive through the opening night, social media, and recommendations. The second year marks the turning point because the community exists and recruits itself. The third year approaches the physical ceiling: beyond 80% occupancy, growth requires expanding or opening a second location. Be careful not to read this table too optimistically: the first year's result depends entirely on the assumption of 45% occupancy. At 30%, the same structure is unprofitable. This is the variable to monitor weekly, above all others.
Community, the decisive factor
Why it dictates everything
A shared office is a place with tables and Wi-Fi. People arrive, work, leave, without talking to each other. Coworking is different: members know each other, interact, collaborate, and recommend clients to each other. This difference explains why people pay for a subscription instead of staying at home or going to the cafe next door, and it generates the word-of-mouth that fills the space. Without a community, you are operating a shared office: without attachment, without recommendations, and with a permanent rotation of members.
How to build it
- The community manager is the most profitable position in the structure. This is not a reception function: it is the person who knows each member by name, profession, and projects, who makes useful introductions between a designer and a startup looking for one, who organizes regular meetings, and who sets the tone of the place. Expect 800 to 1,500 USD per month for a direct and measurable impact on retention.
- Events, two to four per month. A monthly end-of-week happy hour, where members invite their friends and family, making it your primary source of leads. A weekly workshop led by a member on their area of expertise, SEO, Paraguayan accounting, design method: the format costs nothing, the speaker gains visibility, and you gain content and visitors. A weekly group lunch, where everyone brings their meal and most collaborations are born. And occasionally project presentation evenings, which position the venue as a hub of the city's entrepreneurial ecosystem.
- Welcoming new members determines if they stay. Handing over a badge and pointing to a desk guarantees a departure within two weeks. The proper protocol involves four steps: a personal tour of the premises, an introduction to three to five members working in similar or complementary fields, an invitation to the next event, and an informal check-in after a week to ensure everything is going well. This is what transforms a subscriber into a member.
- A discussion channel reserved for members, on the messaging app of your choice, for announcements, recommendations, and requests for service providers. The community manager feeds it daily, maintaining the connection even on days when members work from home.
Taxation
| Tax | Application |
|---|---|
| IRE, 10% | Net profit is taxed at 10%. The activity is of Paraguayan origin, with the space and members located in Paraguay: the territoriality provided for by Law 6380/2019 does not apply. All expenses are deductible: rent, salaries, utilities, consumables, marketing, software, maintenance, and events. Fit-out costs are depreciated over several years, significantly reducing the taxable base in the early years. |
| IVA, 10% | Subscriptions, room rentals, and domiciliation are subject to the general rate of 10%, collected from members. IVA paid on furniture, equipment, and services is deductible. See our Paraguay IVA guide. |
| IDU, 8% | Dividends distributed to a resident partner are subject to IDU at a rate of 8%, increased to 15% for a non-resident partner. For a resident partner, the cumulative tax burden on a fully distributed profit is around 17%. |
| Property tax, if you buy the premises | Property tax is based on the cadastral value, traditionally low in Paraguay, making it a marginal expense. Acquiring the premises transforms rent into asset building: the operation generates income while the property appreciates. This, however, requires mobilizing significantly higher capital and not confusing the two businesses: an unprofitable coworking space in a valuable building remains an unprofitable coworking space. |
Costly mistakes
Mistake 1: Skimping on connection
Wi-Fi is the service members pay for, before design and before coffee. A slow or unstable connection will empty a space, regardless of the quality of everything else. Plan for a professional fiber optic connection with sufficient symmetrical bandwidth for video conferences, a professional router covering the entire floor without dead zones and allowing member authentication, and, most importantly, a second connection from a different operator with automatic failover. Expect 300 to 700 USD per month for everything. This is the item that should never be compromised.
Mistake 2: Neglecting the layout
Nomads and expatriates have frequented spaces on three continents and have a precise point of comparison. An impersonal office floor under neon lights will not retain this clientele, who will prefer the neighboring cafe even with a poorer connection. The design does not need to be expensive; it must be intentional: plants transform a space for a few hundred dollars, natural light is free and can be chosen when visiting the premises, wood costs a third more than melamine for an incomparable result, and local artists are happy to exhibit in exchange for visibility. A successful space fills up faster and can charge more: the investment pays for itself in a few months.
Mistake 3: Opening without an existing community
Members do not come spontaneously: they do not know you exist and do not know anyone in your space. The community is built before opening, not after. Create a discussion group three to six months in advance, invite the freelancers, nomads, and expatriates you know, and organize informal meetings in a cafe, once a month then once a week. Ten to twenty people at each meeting are enough to grow the group. On opening day, you will have fifty to one hundred qualified contacts, some of whom will become your first members, and you will start at 25 or 50% occupancy rather than zero. This is the difference between a profitable first year and an unprofitable first year.
Mistake 4: Ignoring power outages
Outages are frequent in Asunción, especially in summer when air conditioning overloads the grid, and can last from a few tens of minutes to several hours. In a coworking space, an outage means no more connection, no more light, no more air conditioning: computers run on battery but work stops, and members who paid to work do not come back. The solution combines a UPS, which maintains the connection and emergency lighting during short outages, and a generator that takes over during long outages, also powering the air conditioning. Expect 4,000 to 11,000 USD for the entire system. This is the second most important investment after the connection, and most often overlooked by those who have not yet spent a summer there.
Mistake 5: Cutting prices to fill the space
A 60 USD desk attracts uncommitted members: they come two or three times a month, don't really use the space, don't participate in anything, and leave after two months. You list forty registrants for fifteen actual attendances, and the community never forms. A fair price, within market ranges, selects members who come several days a week, make the place their own, and stay for months. Price is a filter: use it to choose your members rather than to fill up quickly.
Mistake 6: Closing at 6 PM
Nomads and freelancers who work with Europe or North America have staggered hours, and a client call at the end of the European day falls in the evening in Asunción. A space that closes at 6 PM automatically loses this audience. Permanent access by badge or code costs one to three thousand dollars to install and nothing afterward, requires no night staff as long as video surveillance is in place, and is a real differentiator in a market where few spaces offer it.
Conclusion
Opening a coworking space in Asunción is at the crossroads of real estate, entrepreneurship, and community animation. The market is nascent, with ten to twenty spaces for an agglomeration of 2.5 million inhabitants, and demand is growing by 15 to 25% per year due to the combined effect of expatriate arrivals, local freelancing, startups, and remote work. A community format of about forty workstations requires 85,000 to 160,000 USD, breaks even in the first year if occupancy follows, and can generate several tens of thousands of annual dollars at cruising speed, for a return on investment of around two to three years. Taxation, around 17% cumulatively for a resident partner, is not an obstacle.
Four elements determine the result, and none are optional. The community, led by a dedicated manager, regular meetings, and a personalized welcome for new members: this is what explains the choice of your space over another. The connection, with fiber, backup, and professional equipment, on which no compromise is possible. The layout, which determines the speed of filling and the price level. And emergency power, without which one summer evening is enough to lose members you have spent months convincing.
Finally, the model fits into the rest of the ecosystem. Expatriates who obtain their Paraguayan tax residency then look for a workspace. Entrepreneurs who go through business creation need a business address, a recurring revenue with almost total margin. And if you buy the premises instead of renting them, operation and real estate investment accumulate. A coworking space is not just a business: it is a central position in Asunción's entrepreneurial community, which benefits everything else you undertake.
Want to open a coworking space in Asunción? Contact our team for Paraguayan residency from €1,400, business creation, a US LLC, bank account opening at €250, real estate investment, and DNIT accounting at €30 per month.