Testimonial: Pierre and Margot, Swiss retirees who chose Paraguay
After the portraits of Julien (French entrepreneur) and the Belgian family Marc and Sophie, we are completing our series of authentic testimonials with that of a very different profile: a Swiss retiree who chose Paraguay for an active retirement. Pierre, 68, a former executive at a Basel-based pharmaceutical multinational, settled in Asunción in 2022 with his wife Margot, 65, a former nurse. Three years after their arrival, they agreed to share their full experience — with real figures to support it.
The first names have been changed to preserve their privacy, but every element of the story is authentic. This testimony provides valuable insight for all French-speaking retirees—Swiss, French, Belgian, Quebecois—who are wondering if Paraguay is a viable and enriching destination for their retirement years. Spoiler: after 3 years there, Pierre and Margot's assessment is unambiguous.
Before leaving: their life in Switzerland
Their profile
Pierre worked for 38 years in the Basel pharmaceutical industry, ending his career as operations director of an international business unit. Margot worked as an oncology nurse until she was 55, before taking early retirement. The couple has no children (by choice) but are very close to their niece who lives in Lausanne and their nephew in the United States. They owned a family home in Riehen (a suburb of Basel) and a rental apartment in Zurich.
Their financial situation in Switzerland before leaving
Pierre and Margot built up significant assets over their careers, typical of a well-managed Swiss executive couple:
| Asset item | Estimated value (before departure) |
|---|---|
| Family home in Riehen (Basel) | ~1,650,000 CHF |
| Rental apartment in Zurich | ~780,000 CHF |
| Pierre's 2nd pillar (LPP) | ~920,000 CHF |
| Margot's 2nd pillar (LPP) | ~380,000 CHF |
| Cumulative 3rd pillar (3a) | ~340,000 CHF |
| Securities portfolio and liquidity | ~650,000 CHF |
| TOTAL gross assets | ~4,720,000 CHF |
Their Swiss tax situation was significant. Basel-Stadt heavily taxes wealthy couples: federal + cantonal + communal taxes combined reached approximately 32% marginal on their income. In addition, there were AVS/AI contributions (still active for Pierre until his retirement), cantonal wealth tax (approximately 0.6% on net assets), LAMal (800 CHF/month for the couple), and various charges. On an annual basis, the total deductions approached 110,000 CHF per year as retirement approached.
The turning point
"The turning point came in 2021, one year before my official retirement," says Pierre. "I did a complete asset review with our financial advisor. He showed me the projected taxes we would continue to pay during our 25-30 years of retirement — on our assets, on our pensions, on our rental income, on our LAMal. That represented potentially 2 to 2.5 million francs cumulatively over the period. Two million taken by the Swiss state when we had already paid our taxes all our lives, and when our consumption of public services would decrease in retirement."
"It was at that moment that I started to seriously look for alternatives. But I absolutely did not want aggressive tax optimization — I wanted a legal, stable solution where we could live our retirement years peacefully in a pleasant setting. Margot had a non-negotiable condition: no 'senior stuck in an expat community' life like she saw in some reports on Dubai or Florida. We needed to be able to integrate into a real country."
The choice of Paraguay among the options considered
Pierre and Margot spent 14 months exploring options. Their successively studied destinations:
- Portugal (former RNH regime): abandoned in late 2023 when the regime was abolished
- Andorra: too expensive to enter (€600,000 minimum) and mountainous climate too similar to Switzerland for a real change
- France (French Riviera): fiscally equivalent to or worse than Switzerland for wealthy Swiss retirees
- Thailand: initially attractive, ruled out after research on long-term legal stability and the Elite Visa status
- Uruguay: interesting but cost of living now close to that of France
- Paraguay: discovered late in their research, initially dismissed due to prejudice ("unknown country"), then seriously reconsidered after a report seen on a French-speaking Swiss channel
"We went on a scouting trip in March 2022, just after my official retirement," says Pierre. "Three weeks in Paraguay, taking our time. Asunción, Encarnación, an excursion to the Chaco, visit to Mennonite communities. We wanted to see the whole country, not just the capital. At the end of the trip, Margot and I made our decision independently, and we agreed: it would be Paraguay."
Preparation: 8 intensive months
The 2nd Pillar Strategy
For a Swiss retiree definitively leaving the EU/EFTA, a major tax lever exists: the total withdrawal of the 2nd pillar (LPP) with preferential Swiss taxation. We detail this mechanism in our specific guide for Swiss citizens.
Pierre and Margot worked for 6 months with a specialized Swiss tax advisor to optimize their LPP withdrawal. The strategy implemented:
- Temporary domicile of Pierre in the canton of Schwyz (low taxation on capital withdrawal) a few months before the withdrawal
- Planning the withdrawal in two tranches to optimize tax brackets
- Coordination of Margot's withdrawal with Pierre's to optimize the couple's taxation
- Timing of definitive departure after receipt of capital to avoid re-taxing it abroad
"The total withdrawal of the 2nd pillars took place in November 2022. On a cumulative LPP of 1,300,000 CHF, we paid approximately 75,000 CHF in Swiss capital tax (an effective rate of 5.8%). This is significantly better than an LPP pension taxed for 25 years at the ordinary Swiss rate and then potentially in Paraguay."
Management of Swiss real estate
Pierre and Margot had to make a decision about their Swiss real estate assets. After consulting tax specialists on both sides:
- Sale of the Riehen house: the house was sold in March 2023, generating net capital of 1,580,000 CHF after repayment of a residual loan and selling costs. No capital gains tax as it had been their primary residence for over 15 years.
- Retention of the Zurich apartment: a strategic decision. The apartment was rented out through a Swiss agency, generating 36,000 CHF/year in gross rent. This rent remains taxable in Switzerland as a non-resident, but at an effective rate of only 22% (no higher bracket when not combined with other Swiss income).
"We kept the Zurich apartment as a 'heritage attachment' and as a fallback option if Paraguay didn't suit us," explains Margot. "Three years later, we confirm that it was a good choice — the rent largely covers our annual trips to Switzerland, and the apartment is gaining value."
Paraguayan procedures
Pierre and Margot initiated their Paraguayan tax residency in September 2022 with our assistance. For a couple of two adults, the cost was €5,000 (€2,500 per adult). The procedure took exactly 11 weeks to obtain the cédula, facilitated by the quality of their apostilled Swiss documents.
In parallel:
- Decision not to create an SRL or LLC: Pierre is retired, Margot is also, no commercial activity to structure
- Search for a permanent home in Asunción (initially Airbnb for the first 2 months)
- Preparation of fund transfers via Wise to the future Paraguayan bank account
- Subscription to international health insurance (Cigna Global) for transition before switching to a local prepaga
- Notification to the Swiss old-age and survivors' insurance (AVS) of the change of residence to continue receiving their AVS pensions in Paraguay
Arrival: January 2023
The first few weeks
"We arrived in Asunción on January 14, 2023," says Pierre. "In the middle of the hot season. 38 degrees when we got off the plane. Margot and I looked at each other and smiled: 'This is a change from Basel in winter!' The first two months in an Airbnb apartment in the Carmelitas neighborhood allowed us to get our bearings without rushing."
The tasks of the first few weeks:
- Finalization of the Paraguayan cédula
- Opening a multi-currency bank account at Banco Itaú
- Search for a permanent home
- Purchase of a car (Toyota Corolla Cross 2021, 22,000 USD used)
- Obtaining a Paraguayan driving license (€150 per person)
- Subscription to a local premium health insurance (MédicoS Premium, coverage equivalent to a premium Swiss subscription)
- First contact with the French-speaking community in Asunción
The definitive accommodation
Pierre and Margot opted to buy a home immediately rather than rent. Their reasoning:
"We had significant capital from the sale of the Riehen house (1.58 million CHF). Leaving this money in an account or as pure financial investment did not interest us. We preferred to invest in a beautiful apartment in Asunción that matched our retirement lifestyle and would appreciate in value."
In March 2023, they acquired a 170 m² three-bedroom apartment with a 35 m² private terrace overlooking a park, in a high-end residence in the Carmelitas neighborhood. Purchase price: 340,000 USD, or approximately 305,000 CHF at the time's exchange rate. The apartment is located in a building with a communal pool, gym, 24/7 concierge, and enhanced security.
"The equivalent of this apartment in Basel or Zurich would cost at least 2 to 3 million francs. We acquired a luxurious dwelling for 10 to 15% of the equivalent European price. And most importantly, we were freed from monthly rent, which simplifies our retiree budget."
Their retirement income in Paraguay
Income structure
Pierre and Margot now live on several sources of income:
| Income Source | Annual Amount | Paraguay Tax |
|---|---|---|
| Pierre's AVS Pension (paid by Swiss fund) | ~31,000 CHF | 0% (foreign source income) |
| Margot's AVS Pension | ~18,000 CHF | 0% |
| Portfolio Returns (from LPP withdrawal + Riehen inheritance) | ~85,000 CHF (5-6%) | 0% (foreign source income) |
| Net Rent Zurich apartment | ~28,000 CHF (after Swiss non-resident tax) | 0% (already taxed in Switzerland) |
| TOTAL Annual Net Income | ~162,000 CHF | Less than 1% overall taxation |
"Our overall tax rate is now less than 1%, compared to 32-35% when we were working in Basel. This is a radical change in our ability to preserve and pass on our wealth."
Portfolio management
Pierre manages a diversified portfolio himself from Paraguay via Interactive Brokers (opening facilitated by their status as Paraguayan residents). The portfolio includes:
- Global equity ETFs (MSCI World, S&P 500) — approximately 45% of the portfolio
- International quality bonds (iShares Global Gov Bond) — 25%
- International listed real estate (diversified REITs) — 15%
- Commodities and gold (physical and ETF) — 10%
- Cash in USD and EUR — 5%
"The portfolio generates an average annual return of 5.5% which I do not have to declare to the Paraguayan tax authorities since all these assets are foreign. This same portfolio in Switzerland would be subject to wealth tax (at 0.6% per year) + tax on dividends and coupons. The annual tax savings are approximately 18,000 CHF."
The real cost of living for a wealthy retired couple in Asunción
Pierre and Margot kept precise track of their expenses during their three years in Paraguay. Here is their updated average monthly budget (2025):
| Expense Item | USD/month |
|---|---|
| Condominium fees Carmelitas apartment (340 m² with services) | 380 |
| Water, electricity (heavy air conditioning in summer), fiber internet | 290 |
| Groceries (premium and organic products when available) | 620 |
| Restaurants (12-15 outings/month, including some high-end restaurants) | 850 |
| Premium prepaga health insurance (couple) | 580 |
| Car (fuel, maintenance, insurance, parking) | 280 |
| Household staff (aid 3 times/week) | 200 |
| Premium sports club (couple, pool access, classes) | 180 |
| Cultural activities (Paraguay Theater, concerts, exhibitions) | 220 |
| Travel (weekends in Argentina, Uruguay, neighboring Brazil) | 650 |
| Clothing, care, gifts | 400 |
| Europe travel reserve budget (1-2 trips/year average) | 500 |
| Donations and family support (niece, nephew) | 350 |
| Miscellaneous, unforeseen | 300 |
| TOTAL monthly | ~5,800 USD |
| TOTAL annual | ~69,600 USD (~64,000 CHF) |
"In Switzerland, for the same standard of living, we spent approximately 160,000 CHF per year — much more expensive rent or house maintenance, more expensive groceries, more expensive restaurants, LAMal, various insurances, transportation, etc. In Paraguay, we spend 64,000 CHF. The annual saving on the cost of living alone exceeds 96,000 CHF — in addition to tax savings."
Details of these comparisons are also available in our cost of living guide in Paraguay.
The social and cultural life of a retired couple in Asunción
Integration into the community
"We were afraid of isolation before leaving, especially Margot," admits Pierre. "In fact, the opposite happened. We built a richer social life in 3 years in Paraguay than in 30 years in Basel."
Their current social network includes:
- About ten French-speaking expat couples met through our networks and community events
- A group of Paraguayan friends met in their residence and through Spanish classes
- Relationships with other international retirees (Germans, Italians, Argentinians)
- A community of classical art lovers (Margot joined an amateur choir in Asunción)
- A gastronomy group (Pierre developed a passion for Paraguayan cuisine)
"We dine with friends two to three times a week, we entertain regularly. Paraguayan social life is warm, people take the time to see each other, there isn't that constant rush we felt in Basel. It's another dimension of well-being that we hadn't anticipated."
Daily activities
Pierre and Margot's typical day:
- 6:30 AM: early wake-up (Paraguayan rhythm), breakfast on the terrace
- 7:30 AM - 10 AM: sports (pool, walk in the nearby park or gym)
- 10 AM - 12 PM: reading, portfolio management, calls with European friends (morning in Europe, good for calls)
- 12 PM - 2 PM: lunch (often at a restaurant with friends or at home cooking)
- 2 PM - 5 PM: nap or quiet activity (intense heat at this time in summer)
- 5 PM - 8 PM: cultural activities, visiting friends, walks, Spanish lessons
- 8 PM - 11 PM: dinner, reading, movies, discussions on the terrace
"The Paraguayan rhythm suits our age perfectly," Margot explains. "Not too fast, not boring, an alternation between activities and rest. We feel young and dynamic because we are physically and intellectually active, but without the stress we felt in Switzerland."
Health: A Key Point for Retirees
Accessible Healthcare System
The question of health is often the most important for retirees considering expatriation. Pierre and Margot made clear choices:
They are insured with MédicoS Premium, a high-end Paraguayan prepaga (private health insurance). Cost: 580 USD/month for the couple, with full coverage (hospitalization, consultations, surgeries, imaging, discounted medications).
"We have access to the best private hospitals in Asunción — Hospital Italiano, Sanatorio Migone, Hospital de la Trinidad. The quality of care for common ailments is equivalent to Switzerland. Doctors are often trained in the USA, Argentina or Brazil, with modern equipment."
Our guide to the healthcare system in Paraguay details the available options.
Serious Illnesses: The Backup Strategy
"For very serious illnesses or highly specialized treatments (complex cancer, cutting-edge neurology, sophisticated interventional cardiology), we kept our Cigna Global coverage as a supplement," explains Pierre. "Cigna allows us to be treated in any global medical center if needed — United States, Europe, Asia. It's a safety net that costs us approximately 350 USD/month extra for the couple, but it gives us complete peace of mind."
This dual coverage (local prepaga + international premium) is particularly recommended for French-speaking retirees settling in Paraguay. It remains much cheaper than the cost of Swiss LAMal or French complementary health insurance of equivalent standing.
Real Health Experience in 3 Years
In 3 years in Paraguay, Pierre and Margot have had several experiences with the healthcare system:
- Comprehensive annual check-up (blood tests, specialist consultations) for both — excellent level, quick appointments, ridiculously low prices
- Pierre's hospitalization for a urinary infection (48h at Sanatorio Migone): impeccable treatment, 2,400 USD bill fully covered by the prepaga
- Margot's orthopedic surgery (knee osteoarthritis, minor intervention): performed by a surgeon trained at the Mayo Clinic, 8,500 USD bill covered 90% by the prepaga
- Regular consultations with dermatologist, ophthalmologist, cardiologist: quality comparable to Switzerland, prices divided by 3-4
"Our real experience with the Paraguayan healthcare system is very positive. For retirees in good overall health with a few minor ailments to monitor, it is perfectly suitable. Only the most complex pathologies justify a return to Europe or the United States, and that's why we keep Cigna."
Travel: The Flexibility of a Temperate Nomadic Life
Proximity to Latin America
"The great gift of Paraguay is access to the rest of Latin America," explains Pierre. "In 3 years, we have explored Argentina (Buenos Aires, Patagonia, Mendoza), Uruguay (Montevideo, Colonia del Sacramento, Punta del Este), Brazil (Iguazú, São Paulo, Rio de Janeiro), and Chile (Santiago, Valparaíso). Flights from Asunción to these destinations are short and inexpensive (typically 200-400 USD round trip). It's an extraordinary cultural enrichment we would never have had from Basel."
Returns to Europe
Pierre and Margot return to Switzerland once or twice a year, staying for 3 to 5 weeks each time. "This allows us to see our niece and her family, our old Basel friends, our family doctor for the most complex check-ups, and manage the residual administration related to the Zurich apartment."
"Flights from Asunción to Zurich via São Paulo or Madrid cost 1,500 to 2,500 USD round trip in economy comfort class. Two annual trips represent approximately 6,000 USD that we integrate into our budget. It's an investment we gladly make to maintain our family and friendly ties."
Challenges and Adjustments
Initial Language Barrier
"Our first few months were linguistically difficult," Margot admits. "I had studied Italian in high school, Pierre speaks good English but no Spanish. We took intensive courses as soon as we arrived — 3 hours a day for 4 months. Today we are conversational in Spanish, not bilingual, but independent for all daily life and social interactions."
"Learning Spanish at 65 is more difficult than at 25, but it's feasible with motivation and regularity. Paraguayans are patient with foreigners who make the effort. See our guide to learning Spanish in Paraguay."
Summer Heat
"The Paraguayan climate in summer (December-March) is intense. 35 to 42 degrees Celsius with high humidity. For Swiss people accustomed to temperate temperatures, it's a shock," Pierre admits. "We have adapted our lifestyle — air conditioning runs continuously from December to March, we spend a lot of time indoors during the hot hours, we travel to Argentina or Uruguay (more temperate climates) in the middle of summer to escape the heat peaks. The electricity bill triples in summer, but it remains negligible compared to tax and living savings."
Family Distance
"We miss our niece in Lausanne, that's obvious," Margot testifies. "We saw her grow up, we are very close. Physical distance is the real price to pay for this new life. We compensate with weekly video calls, reciprocal visits (us in Switzerland twice a year, her in Paraguay once every 18 months), and the amplification of the quality of shared moments."
"What was unexpected is the renewal of our social network. We now have more active friends in Paraguay than in Basel at the end of our careers. Our Basel friends had become routine relationships — Sunday coffees, predictable outings. Our new Paraguayan and expatriate friends are quality people, with fascinating backgrounds, with whom we share adventures. At 68, we feel more socially stimulated than at 55."
Paraguayan Administration
"Paraguayan administration is slower and less structured than Swiss administration. Every step takes more time, requires more documents, more validations. Fortunately, our support team handles the essentials. Without them, we would have been lost."
Asset Review After 3 Years
Pierre precisely calculated the evolution of their financial situation between their departure from Switzerland (January 2023) and today (3 years later):
| Evolution over 3 years | Amount in CHF |
|---|---|
| Cumulative tax savings (vs. staying in Switzerland) | +330,000 CHF |
| Cumulative cost of living savings | +290,000 CHF |
| Portfolio return after tax | +420,000 CHF |
| Estimated capital gain on Zurich apartment | +95,000 CHF |
| Estimated capital gain on Carmelitas Asunción apartment | +55,000 CHF |
| Net asset growth over 3 years | +~1,190,000 CHF |
"Without expatriation, we would have instead spent approximately 400,000 CHF net over 3 years to maintain our lifestyle in Basel (because AVS pensions would not have been enough to cover all costs, we would have had to dip into our assets). The total differential in wealth trajectory is therefore approximately 1,590,000 CHF in 3 years thanks to our relocation to Paraguay."
"Projected over 20 years of retirement, the wealth gap will easily exceed 10 million CHF. This is a major impact not only for us, but also for what we will be able to pass on to our niece and nephew."
Their Advice to Hesitant Retirees
Pierre and Margot have formulated specific advice for French-speaking retirees (especially Swiss) considering the same step:
- "Do an honest projected asset review" — "Calculate what you will pay in taxes, insurance, and contributions over 20-25 years of retirement in Switzerland. The shock of the total figure often triggers the decision. Without this assessment, one remains in the abstract."
- "Don't neglect the health aspect in your decision" — "Health is central for retirees. Research the Paraguayan system, plan for dual coverage (prepaga + international premium), and plan to maintain ties with a trusted doctor in Europe for the most complex check-ups."
- "Optimize Swiss LPP withdrawal with a specialized tax expert" — "This is a major lever for a Swiss retiree. The choice of temporary canton, timing, staggering — all this can represent tens of thousands of francs in savings. Invest in quality advice."
- "Don't necessarily sell all your Swiss real estate" — "Keeping a rental property in Switzerland is an excellent safety net — in case you need to return, for inheritance, for asset appreciation. Rents largely cover your annual trips back to Europe."
- "Seriously learn Spanish before and after your arrival" — "It's your integration passport. Don't expect to be able to live entirely in French or English in daily life. Paraguayan Spanish is accessible and Paraguayans are patient with those who make the effort."
- "Choose your accommodation carefully" — "At our age, the comfort of accommodation is decisive for daily quality of life. Opt for a modern building with services (pool, 24/7 security, maintenance), a pleasant view, a size adapted to your actual use. Asunción offers excellent options at unbeatable prices."
- "Plan your ties with Europe" — "The distance from loved ones remaining in Europe is the real emotional challenge of retired expatriation. Plan 1-2 annual trips to Europe, weekly video calls, welcoming your loved ones to Paraguay (children and grandchildren love to visit). Physical distance should not become emotional distance."
- "Get support for Paraguayan logistics" — "Administrative, banking, and legal setup in Paraguay is technical. At 60 or 70, you don't want to spend months on these topics. Professional support frees up your energy for what matters — enjoying this new life."
Overall Assessment After 3 Years
"Do we regret it? Not for a second," concludes Pierre. "The first three years in Paraguay have been the most fulfilling of our retirement. We have financially multiplied our assets instead of consuming them. We have socially built a richer life than in Basel. We have physically maintained exceptional fitness thanks to the climate and lifestyle. We have intellectually discovered a fascinating continent."
"At 68 and 65, we feel 10 years younger than when we arrived. Our only disappointment is having discovered Paraguay so late — we would have liked to settle at 60 instead of 65-68. If we had a message for our Swiss, French, Belgian or Quebec contemporaries approaching retirement: don't underestimate what this destination can offer for your retirement years. It's not a consolation prize — it's potentially the best decision of your post-career life."
The Ecosystem That Made This Success Possible
- Paraguayan Tax Residency (€2,500 × 2 adults = €5,000): the foundation
- Paraguayan Dual-Currency Bank Account: daily management with USD savings
- Paraguayan Accounting (€30/month): simple annual declarations
- Paraguayan Driving License (€150 × 2): couple's mobility
- Interactive Brokers: international securities account for the portfolio
- Residual Swiss Bank Account: for rents and transfers with Europe
- Wise: international transfers between accounts
- Prepaga MédicoS + Cigna Global: optimal dual health coverage
- French-speaking community of Asunción: social and friendly network
Conclusion: A Transformed Retirement
The testimony of Pierre and Margot concretely and detailedly illustrates what Paraguayan expatriation can offer a well-prepared and supported French-speaking retired couple. Beyond the obvious fiscal dimension — saving over 100,000 CHF per year on taxes and cost of living — expatriation to Paraguay has brought this Swiss couple a global transformation: a richer social life, improved physical condition, continuous cultural enrichment, financial serenity allowing them to calmly prepare for transmission.
Their projected wealth trajectory over 20 years of retirement improves by more than 10 million CHF compared to a retirement scenario in Switzerland — a sum that will benefit not only their standard of living but also their family inheritance (niece and nephew).
If you are a French-speaking retiree — Swiss, French, Belgian, or Quebecer — who is still hesitant to take the plunge, Pierre and Margot's journey can serve as a benchmark. Their testimony is not an exceptional case: it is representative of what we observe among retirees who seriously settle in Paraguay. The benefits are multidimensional, adaptation is manageable, and regrets are almost non-existent among those who properly prepare their transition.
Modern retirement is no longer a waiting phase before the end of life. It is potentially the richest phase of your existence, where you finally have the time, money, and health to live fully. Paraguay offers an exceptional setting for this phase. Starting from €1,400 per person and a 3-month procedure, you can activate it in 2026.
Are you retired or close to retirement and considering Paraguay? Contact our team for support tailored to the specific needs of retirees: tax residency, optimization of pension withdrawals (LPP for Swiss, PER for French), wealth management, real estate selection, health coverage. Our experience with several French-speaking retired couples settled in Paraguay allows us to anticipate all aspects of your transition.