From Madrid to Asunción: How I Started a New Life in Paraguay After Retirement
Experience of a LivingInParaguay.com customer: Victor G.L. from Madrid
After I started a new life in Paraguay, the team at Living in Paraguay asked me to share my experience. Honestly, I did not know where to begin.
When I was young, I moved abroad for the first time shortly after military service. Back then, military service still lasted two years in Spain. Like many Spaniards of my generation, I left for Germany looking for opportunities.
I spent three years in Landsberg am Lech. During my third year there, I returned to Spain and got married. Because of that experience, living abroad never felt frightening to me.
Life in Madrid before moving abroad
In 2015, I was living in Madrid, in the Chamberí district. My wife had already passed away years earlier. We never had children.
I had recently retired. My days felt empty. Free time sounds wonderful until you have too much of it. Then it becomes difficult to manage.
I did not feel connected to many other retirees around me. Most were older than me. I have nothing against them, of course, but I had never even played dominoes in my life.
What bothered me most was stretching my pension every month. I kept asking myself the same question: why should I pay taxes again on a pension built from already taxed income? In my hometown, we call that paying twice.
Discovering Paraguay as a retirement destination
I started doing calculations. I spoke with friends. I spent months researching alternatives.
Eventually, I discovered Paraguay.
At first, I did not know anyone there. Still, I reminded myself that I also knew nobody in Germany when I moved there years earlier. Sometimes, when a country is growing, newcomers are welcomed with open arms.
What attracted me most was the calm lifestyle and the sense of security. Paraguay seemed relaxed, affordable, and full of possibilities.
That was when I contacted the consultants at Living in Paraguay. They helped me understand the residency process and explained how everything worked.
They could manage the paperwork, assist with finding a home, and guide me through the relocation process. Most importantly, they explained that Paraguay does not tax Spanish pensions received from abroad.
That changed everything for me.
Moving to Asunción and starting a new chapter
By changing my tax residence, I stopped receiving a reduced pension and started receiving the full amount. When you combine that with the much lower cost of living in Asunción compared to Madrid, the difference becomes enormous.
So that is exactly what I did.
I packed my things, closed my apartment, and moved to Paraguay.
Today, I have been living in Asunción for almost three years. My life has completely changed.
I have made friends of different ages. They bring energy and happiness into my daily life. I now live in a smaller city, but in a country full of places still waiting to be explored.
Many pleasant surprises happen constantly here. Still, one fact matters more than anything else: for the first time in my life, I can save money without sacrificing comfort.
Financial freedom and daily life in Paraguay
Right now, I am also processing my Paraguayan passport. I plan to use it to travel across South America. Argentina, Brazil, and Chile are all nearby and easy to reach.
The climate is another huge advantage. The weather is pleasant almost all year round. Whenever I want, I return to Spain and stay as long as I like.
I also rented out my apartment in Madrid. Originally, I did it simply to avoid leaving it empty. However, that rental income changed my financial situation even more.
My Spanish pension, now free from Spanish taxation abroad, already allowed me to live much better than before. Adding rental income means I can travel, enjoy restaurants, and live comfortably without financial stress.
I have explored many parts of Paraguay already. I also visited Uruguay twice. In Argentina, I have only seen Buenos Aires so far, but there is still plenty left to discover.
I eat out frequently, either in restaurants or at friends’ homes. Some are Paraguayans. Others are Spaniards who decided to begin the same adventure.
A new beginning later in life
Sometimes I stop and think about everything that has happened.
Who would have imagined that, after retirement, I still had so many experiences left to live?
