Opening a restaurant or an Airbnb in Paraguay: A realistic opportunity?

The idea of opening one’s own hospitality business in Paraguay is exciting more and more entrepreneurs from Europe. The combination of low capital requirements, less stringent regulations compared to the D/A/CH region, and the enticing South American culture makes Paraguay an attractive target for starting a business in the hospitality sector, especially in the area of vacation rentals and Airbnbs. But how realistic is this dream? In this blog post, we explore the opportunities, challenges, and key steps to successfully establish a hospitality business in Paraguay, with a special focus on Airbnb.
Choosing Paraguay as the location for your hospitality business is attractive not only because of the lower cost of living and friendly immigration policy. The country also offers a growing tourism industry, especially appreciated by lovers of nature and culture. However, before you pack your bags, it’s important to familiarize yourself with the basics of opening a business, the capital requirements, and the specific regulations in Paraguay.

Exploring Business Opportunities in Paraguay

At first glance, Paraguay may seem like a blank slate, yet it offers diverse business opportunities, especially in the hospitality sector. Thanks to its growing popularity among tourists, both from neighboring South American countries and internationally, the demand for quality and unique accommodations has risen. Airbnb, as a platform for vacation rentals, has established itself as a popular choice for travelers seeking authentic and cozy stays.

Opening an Airbnb in Paraguay can be a lucrative business idea, particularly if you can offer unique experiences or accommodations with local flair. From traditional Paraguayan houses to modern apartments in the city – the opportunities are vast. The key to success lies in finding a niche that travelers demand and providing an unforgettable experience they are eager to recommend.

The Investment Costs for Opening a Hospitality Business in Paraguay

One of the biggest selling points for starting a business in Paraguay is the comparatively low capital requirement. In contrast to Europe, the startup costs for a hospitality business in Paraguay can be significantly lower. This includes not just the costs for renting or purchasing properties but also ongoing operational costs. However, potential entrepreneurs should not forget that careful planning and budgeting are essential to avoid unexpected expenses.

A crucial aspect often overlooked are the legal steps and regulations for opening a hospitality business in Paraguay. Although the bureaucracy may be less complex than in many European countries, there are still specific requirements and regulations that must be met. It is advisable to consult local experts or advisors to ensure all legal requirements are fulfilled.

Making Airbnb Successful in Paraguay

The success of an Airbnb in Paraguay depends not only on the attractiveness of the accommodation itself but also on the host’s ability to create a welcoming and memorable guest experience. This means thinking outside the box and offering services or amenities that provide added value to your guests. Whether it’s a personal welcome, insider tips on local attractions, or even customized tours, small gestures can make a big difference.

Marketing and online presence are also crucial for success. A strong presence on platforms like Airbnb, coupled with appealing photos and detailed descriptions of your accommodation, can help you stand out from the competition. Additionally, it’s important to collect and utilize reviews and feedback from guests to continuously make improvements and increase visibility.


Opening a hospitality business, especially an Airbnb in Paraguay, offers both a dream and a realistic opportunity for entrepreneurs from Europe. With the right preparations, a clear understanding of the local market conditions, and a dedicated approach to the guest experience, your business venture in Paraguay can become a successful and rewarding adventure. Paraguay awaits to be discovered by bold and innovative entrepreneurs ready to invest in this exciting country and further enrich its tourism sector.

Frequently Asked Questions (FAQs) on the Topic: Hospitality and Airbnb in Paraguay

What are the average startup costs for a hospitality business in Paraguay?

The startup costs for a hospitality business in Paraguay can vary significantly depending on the type and location of the business and the extent of the desired setup. For a small Airbnb, costs can be relatively low, especially if you already own a property that can be converted. On average, however, you should expect to invest from about $5,000 for basic renovations

and furnishings. For more extensive projects or purchasing property, costs will increase accordingly.

What legal steps are necessary for opening a hospitality business in Paraguay?

To open a hospitality business in Paraguay, you must first officially register your business and obtain all necessary licenses and permits. This typically includes a business license, tax registration, and depending on the type of business, specific permits for the hospitality industry. It is advisable to use the services of a local lawyer or consultant to ensure all legal requirements are met.

What is the current market situation for hospitality and Airbnb in Paraguay?

The demand for unique and authentic accommodation experiences in Paraguay is growing, creating a positive market situation for hospitality businesses and Airbnb rentals. Especially in touristically attractive areas such as Asunción, Encarnación, and near the Jesuit Missions, there is high demand. The competition is relatively low compared to more traditional markets, offering new entrepreneurs good opportunities to establish themselves.

What support does the government of Paraguay offer to new entrepreneurs?

The Paraguayan government offers various support programs for entrepreneurs, including tax breaks, financial aid, and advisory services. Additionally, there are special programs for foreign investors designed to facilitate entry and expansion in the Paraguayan market. It is advisable to inquire at the Paraguayan Chamber of Commerce or the Ministry of Industry and Commerce about available opportunities.

Can I, as a foreigner, open and operate a hospitality business in Paraguay?

Yes, foreigners can start and operate businesses in Paraguay, including in the hospitality sector. The requirements for foreign entrepreneurs are generally the same as for locals. However, it is important to be informed about specific visa or residency requirements that might apply for long-term business activities in Paraguay.

What are the most common challenges when opening a hospitality business in Paraguay?

The most common challenges include navigating the bureaucratic process of business establishment, understanding and complying with local regulations, language barriers, and building a reliable network of local partners and service providers. Additionally, adapting to the local culture and business practices can be challenging for foreign entrepreneurs. Thorough preparation and seeking professional advice, however, can help overcome these hurdles.