ASUNCIÓN, PARAGUAY
Tragedy to Triumph – Paraguay’s Resilient Reconstruction
We spent four days in Asunción, Paraguay, without a lot of prior knowledge of what the city or country offered. We arrived at night, but when we opened the window of our 12th-floor apartment to the skyline, all I can say is - Asunción’s skyline is booming!
Since the early 2000’s, the country has completely revitalized its economy. It has become one of the most stable economies in South America, maintained its status as one of the region's safer countries, and is drawing massive foreign investment. They achieved this turnaround by focusing on becoming a regional manufacturing hub, expanding livestock production, and reaping the benefits of exporting renewable energy. First and foremost, they created a highly attractive, simplified tax code famously known as the "10-10-10" system: 10% corporate tax, 10% personal income tax, and 10% VAT.
Logistics
Travel: We arrived by bus from Brazil. We found the buses in South America to be very clean and comfortable for long-distance travel. You can reserve seats directly at the station, or you can use the website Busbud to search and pay for routes. We were able to reserve our seats, and the bus driver coordinated all the immigration stops between Brazil and Paraguay to ensure our passports were stamped correctly. The new immigration center on the Paraguayan side of the Iguazu Falls area is a beautiful, modern building, and the whole process via the bus was surprisingly easy!
Around Town: Getting around within the city was easy. While local buses connect Asunción to surrounding towns, we found Uber to be incredibly affordable and convenient for navigating the city itself. We eventually flew out of the main international airport, Silvio Pettirossi International Airport (ASU), which is on the smaller side and has a limited schedule of international flights. Unfortunately, there are not many options for tours outside of Asunción. If we returned, we would base ourselves in Asunción again and rent a car to visit sites outside the city. Based on my research, renting a car is very affordable; although traffic in Asunción can be congested, the road system outside the city looked well-organized.
Lodging: Due to a massive construction boom, affordable and modern Airbnbs are incredibly easy to find. We stayed in a place with a pool, a full kitchen, separate bedrooms, a washing machine, and an amazing balcony view—all for less than the price of a standard hotel room.
ATMs & Cash: We used our credit cards for the vast majority of our transactions, but we withdrew some local Guaraníes (₲) from a shopping mall ATM for smaller, cash-only purchases.
Shopping: Mall culture is alive and well across South America, but Asunción takes it to another level. Elaborate shopping malls are dotted throughout the newer parts of the city. These beautifully designed, modern facilities are packed with name-brand stores, massive food courts, cinemas, large open spaces for pop-up exhibits, supermarkets, and banks. They have truly evolved to replace the historic city piazza as the community's central gathering space.
Asunción
Prime visual examples of this change are the countless apartment buildings and luxury shopping malls popping up in key neighborhoods throughout Asunción. Development is intensely concentrated in upscale districts like Villa Morra, Las Lomas, Ycua Satí, and Manorá— the bustling corporate heart of the capital. In fact, right along the borders of these districts, massive skyscrapers and high-end hubs like Paseo La Galería and delSol Shopping have completely redefined what used to be low-rise residential areas. Besides marveling at this shiny new construction, we spent time exploring and learning about Paraguay’s turbulent past and its eventual renewal.
The view from our apartment revealed how much growth is taking place in Asunción. This area of the city was once home to large estates and ranches.
Indoor shopping malls are major anchor points within the newly developed areas of the city. Besides fancy shops, malls have grocery stores, fine dining, and even elaborate gardens.
Greater Paraguay Context
Paraguay's modern history began in 1537 when Spanish explorer Juan de Salazar y Espinosa founded the fortified settlement of Asunción along the Paraguay River. The strategic outpost quickly became a vital hub for Spain's colonial empire, built in an area that had been inhabited by the indigenous Guaraní people for centuries. Over the next nearly three centuries, the deep integration of these two cultures forged a unique national identity, ultimately fueling a successful, bloodless revolution against Spanish rule in 1811.
Built in 1772, the Casa de la Independencia (House of Independence) is the oldest building still standing in Asunción. This is the exact site where Paraguayan revolutionaries planned their historic coup, secretly slipping out under the cover of night to march on the Governor's House and demand their freedom from Spain.
From 1864 to 1870, Paraguay was involved in the War of the Triple Alliance. Brazil, Argentina, and Uruguay fought against Paraguay over disputed lands. This era in South American history was incredibly volatile, as newly formed nations were still defining their borders. It became the bloodiest conflict in South American history; tragically, over 70% of Paraguay's entire population perished, including roughly 90% of its males.
The Palacio de López (the President's Palace) was completed in 1867 in the midst of the War of the Triple Alliance. It was heavily damaged during the conflict and was not fully repaired until 1892. Nowadays, it serves strictly as the executive workplace for the government, but the president does not actually live there.
Following the war, Paraguay was occupied by Brazil for six years. It took decades upon decades for the country to stabilize its population and reinvent its industries. Much of the 20th century brought further hardship; the nation was led by a series of military strongmen, culminating in the brutal 35-year dictatorship of General Alfredo Stroessner, during which Paraguay became one of the poorest countries in South America. In 1989, Stroessner was finally deposed. By 1992, the people enacted a new constitution designed by and for the citizens, implementing strict controls on government power to ensure a dictatorship could never happen again.
Built in 1857, the old legislative building is called El Cabildo, and it served as the historic location for the Paraguayan Congress to debate and pass laws. In 2003, a modern glass facility was built right across the plaza to become the new architectural center of Paraguayan democracy.
Walking around the historic center brought this history alive as we visited various landmarks, including the House of Independence, the National Congress, the Palacio de López (the executive building), and the National Pantheon of Heroes. After learning about the country's turbulent past, I could completely understand why the Pantheon is considered such hallowed ground. Watching the stoic military service members stand guard over it deeply reminded me of our own national ceremonies back home.
The National Pantheon of Heroes houses the remains of Paraguay's most monumental figures, including its first constitutional president, Carlos Antonio López, the prominent War of Triple Alliance leader Francisco Solano López, and José Félix Estigarribia, a celebrated hero of the Chaco War.
Do Not Miss
Empanadas - Although we have eaten some form of empanada throughout our travel in South America, Paraguay’s are amazing. We ate them at sit-down restaurants and even their equivalent to fast-food chains (Don Vito). Our favorites were at El Bolsi in the historic center, a diner-type café packed with locals that has amazing baked goods and seating around a central sunken bar. For about a dollar or two apiece, you can try traditional beef, chicken, or spicy versions.
Our Greatest Takeaway
What struck us most during our time in Asunción was the profound, quiet strength embedded in the local culture. It is a place where a painful history isn't hidden away, but rather serves as the foundational bedrock for an inspiring future. To see a nation bounce back from near-total demographic destruction and decades of authoritarian rule to build one of the most vibrant, forward-looking economies in South America is remarkable. The kindness of the people we met, combined with the palpable energy of a city reinventing itself, left us with a deep respect for Paraguay. It stands as a powerful reminder that renewal is linked to resiliency.
Though we only spent four days here, learning about this dynamic history made us wish we had rented a car to travel deeper into the country. We would have loved to visit the historic Jesuit ruin sites in the south and explore the vast natural landscapes of the Chaco region. Ultimately, it was incredibly encouraging to witness Paraguay's positive economic growth firsthand, and it definitely makes me want to keep an eye on this resilient country to see how it continues to evolve.
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