Are you tired of the high cost of living?
Working long hours just to make ends meet?
South America is a great place to start your search since it is significantly cheaper.
In this blog, we will explore five of the cheapest countries to live in South America:
Bolivia, Colombia, Peru, Argentina, and Paraguay.
Bolivia
Bolivia is frequently overlooked as a retirement destination, despite being one of South America’s cheapest countries with a relatively high quality of life. It’s actually the cheapest country in South America. Bolivia is amongst the poorest countries in the region, which is partly why it is one of the cheapest South American countries and frequented by budget travelers. But it also has many areas with first-world amenities. Services are cheap. It would be very affordable for you to have a maid who can also prepare your meals or a personal driver for under $300 a month.
Bolivia is a landlocked country in the heart of South America. An obvious place to live is the capital, La Paz. Here, you will have access to a high quality of life with many accommodations expected from any major city.
Santa Cruz: Little Miami
But the gem for bargain living of Bolivia, and any of the countries in South America for that matter, is not La Paz. I would argue it is Santa Cruz. Dubbed Little Miami by the locals. It feels like a small town nestled in the middle of a jungle. You can hear flocks of birds and other critters come to life at night, making Santa Cruz an absolute consideration for nature lovers.
However, it is not dubbed Little Miami due to its jungle vibes. Amongst this “small town,” there is tremendous undergoing development. The biggest buildings in Bolivia now belong to Santa Cruz. The nightlife, international cuisine, and tropical weather give you much of what you love from Miami at a fraction of the price.
Many cheap flights can take you to other parts of the country. Bolivia has popular destinations that can satisfy even the most active lifestyle. The New World’s largest mine was Potosí, a Unesco world heritage site. Bringing incredible wealth to Spain. Which stunted its banking innovation. Resulting in Spain falling behind England as Europe’s financial powerhouse.
The scenery is breathtaking, and you can see some of South America’s most beautiful natural wonders, such as the Uyuni Salt Flats.
I highly recommend them, especially during the rainy season. When the rain falls, you get a beautiful mirror effect that feels and looks surreal. The flamingos in the middle of the Flats are also a stunning sight.
If you want this unique experience, you can take overnight buses from La Paz to the Uyuni Salt Flats for around $20.00. Just remember to pack your jacket with gloves and all. It does get chilly at night due to its high altitude.
The cost of living in Bolivia is significantly lower than in many other South American countries. You can rent a one-bedroom apartment in a decent area for less than $300 per month, and a meal at a local restaurant will only set you back $2 to 3 dollars. Public transport is also cheap; you can get around most cities for less than $1.
Bolivia is amongst the poorest countries in the region, which is partly why it tops the list of cheapest South American countries and is frequented by budget travelers. But it also has many areas with first-world amenities. Services are cheap. It would be very affordable for you to have a maid who can also prepare your meals or a personal driver for under $300 a month.
Although Bolivia is amongst the cheapest countries in South America, I would recommend living here over some of the other options on this list if you appreciate more colonial cities with the option of a budget-friendly trip to get away for the weekend as there is so much to explore in Bolivia. However, cities like Buenos Aires, Medellin, and Lima will probably give you a richer day-to-day lifestyle as they are more developed big cities. As always, it depends on what kind of style you are most attracted to.
Colombia
Colombia is a lively country that has gone through a significant transformation in the last 20 years. Because of its dark past, many people look past Colombia. This is a mistake as it contains many of the best characteristics that Americans looking to retire abroad hope for.
The cost of living in Colombia is lower than in many other South American countries, yet the quality of life is remarkably high.
You can rent a one-bedroom apartment in a decent area for less than $400 per month. Meals at local restaurants will only set you back $3-10 dollars, depending on your choice of restaurant.
Public transportation is very affordable. You can get around most cities for less than $1. Cabs and Uber are so cheap that owning a vehicle is unnecessary.
Colombia is one of the most biodiverse countries in the world. It has access to both the Atlantic and Pacific Oceans. It has all sorts of beautiful cities. Ranging from chilly big city life in Bogota for those urban dwellers to tropical climates in Cali and Cartagena for those who prefer the heat.
Colombia has tons of fantastic wildlife within a short flight away that could ignite your South American adventure. It shares the Amazon rainforest with Brazil and Peru. The Central Andes mountain runs smack through the country. Offering you all sorts of beautiful nature hikes with spectacular views.
With Colombia’s many different climates and environments, it helps break down a few of its most popular retirement destinations.
Bogota: The Capital City
My home base when abroad, is the capital city of Colombia, Bogota. It works well for me as I am twenty minutes from El Dorado International Airport. I can get to almost anywhere in Colombia under an hour’s flight and between $30 to $120 round trip. Miami is about three and a half hours away. A round trip can be snagged for under $200, depending on how you book.
My business is based in Miami, and most clients reside there. I work remotely a large part of the time from Bogota. This allows me to drastically increase my quality of life while cutting my expenses by about sixty percent of what it used to cost me to live full-time out of Miami.
This frees up cash flow to invest more in my business, toward my retirement accounts, and travel more. My productivity is also maximized because I can outsource my time-consuming day-to-day tasks. A domestic employee prepares my breakfast and lunch, does my laundry, and cleans my apartment twice a week for under $200 a month.
My personal trainer costs me less than $150 a month. I do not have to think. I get to the gym; he has all my routine and diet ready. I am in and out of the gym in an hour. Gym memberships can run you anywhere from $15 to $300 a month depending on how high end of a gym you want.
To have a personal masseuse come to your house for an hour massage will set you back $20 to $50. A day pass at a spa to help you unwind after a long work week will cost you from $20 to $150. An international cuisine at a high-end restaurant rarely costs over $15 a plate. A nice cocktail is $8. Cut those prices in half if you go to a mid-range restaurant dining experience.
Time is the most precious asset you have. Suppose you can save an hour a day from doing a daily chore and use that to instead go to a yoga class or gym, meditate, or stay home and watch your favorite show with a bowl of Cheerios. In that case, these small luxuries will incrementally increase your quality of life.
Medellin: City of Eternal Spring
Although Medellin is not as big as Bogota, it is still a good-sized city with much more flair. Medellin has the charm, the swag, an insane history, the rich culture, the beautiful people, and an incredible blend of nature and city. The city makes it a point not to look like the concrete jungle of its bigger brethren in the capital.
Mountains surround the city, which gives it this serene energy. You feel it as soon as you arrive. In the forty-five-minute ride down into the city from the Rio Negro airport, you are in awe of the massive mountains and the splash of cool fresh air that hits your face. Medellin is known as the city of “eternal spring” for its year-round springlike conditions.
There is a reason Medellin is one of the fastest-growing cities and has become an ex-pat haven. It has been proclaimed as one of the most innovative cities in the world. Up there with Tel Aviv. You have countless day trips you can take on the weekends. Places like El Peñon, where a massive rock protrudes far into the air, offer breathtaking views of the beautiful lakes and mangroves below. Santa Elena is a tranquil town up in the mountains, with great local restaurants and an escape for nature lovers who want to disconnect from the city and connect with nature. This is only a 45-minute drive from Medellin.
Medellin is world-renowned for its nightlife. Provenza is arguably the most vibrant street in South America and amongst the top in the world. Multiple blocks are closed to vehicles, allowing you to roam free through Provenza. The neighborhood is full of Medellin’s top restaurants and international bars. During the day, you can sit by the creek, surrounded by nature, read, and enjoy coffee.
Peru
Peru is known for having one of the SEVEN Wonders of the World.
Machu Picchu, this sacred place, is truly iconic and astounding. It’s truly a must-see! You’ll have to experience it because pictures never do it justice. Peru has stunning natural beauty, from the Amazon rainforest to beaches and cities. Plus, delicious food! The food is unique in its fusion between Japanese and Latin American. You can experience it from budget-friendly street food, local eateries, and mid-range restaurants to fancy restaurants.
If I had to pick a top gastronomic experience in Latin America, Peru, Mexico, and Argentina, could easily take the throne depending on what kind of food you like (as a foodie, I will emphasize a lot on this throughout my blogs). I love Asian food. So, crossing it with Latin American cuisines is a taste bud paradise for me. Ceviche and “Lomo Saltado” are my favorite dishes.
You can rent a one-bedroom apartment in a decent area at an affordable price. Less than $400 per month and a meal at a local restaurant will only save you a few dollars. Public transport is less than $1.
You can take a bus from Lima to Cusco to explore the country for around $20.00. Cusco is another fantastic city filled with ex-pats, but it is filled with tourists. It is a beautiful old, quaint city with history and the gateway to Machu Picchu.
The scenery along the way is breathtaking, and you will have a chance to see some of South America’s most beautiful natural wonders.
Paraguay
Paraguay is a landlocked country in South America that travelers often overlook. However, this hidden enclave is one of the cheapest countries in the region to live in.
Paraguay’s cost of living is significantly lower than many other South American countries, making it an attractive option for those looking to stretch their budget further.
One of the main reasons for Paraguay’s affordability is its low housing costs. According to Numbeo, a one-bedroom apartment in the city will cost $397 per month in the city center.
You can find decent accommodation for a fraction of the price you would pay in other countries, mainly if you are willing to live outside the main cities.
Local restaurants and public transportation costs are relatively low, and you can get by on a small budget.
A single person can live comfortably for $458.00 a month.
Paraguay offers a unique blend of indigenous and colonial culture, reflected in its architecture, music, and cuisine. The country is home to many natural wonders, including the Iguazu Falls, the Pantanal wetlands, and the Chaco, one of South America’s largest wilderness areas.
Argentina
Argentina, the second-largest country in South America, is known for its vibrant culture, rich history, and diverse landscapes.
While it may not be the cheapest country in the region, living in Argentina on a budget is still possible. One of Argentina’s best ways to save money is to live outside the main cities where you can find rent for under $300 per month.
Buenos Aires, for example, can be relatively pricier than other destinations on this list. But if you move to a smaller city or town, you will find that the cost of living is much lower. Food and transportation costs are relatively low, mainly if you stick to local options.
Let’s talk food.
If you come prepared to Argentina with your U.S. dollars in cash, the exchange rates you pay for pesos get cut in half. USD for Argentine peso at the unofficial “Blue” rate is far more attractive than the official rate. A good steak at a mid-range restaurant goes from under $12 to $7. With wine included.
Argentina has suffered through very socialistic governments who have exercised extreme capital controls to force the rich to keep the capital in Argentina. As always, this creates unintended consequences. In this case, a very developed black market for exchange rates results in cheap vacations in an incredible country for those who come with physical greenbacks in hand.
Argentines are very proud of their gastronomy. As they quickly remind you, they are direct descendants from Italy. There was a tremendous English presence in Argentina as well. This is why their top professional soccer teams carry English names, i.e., “River Plate.” This makes Argentina a little Europe right in South America. That means a fantastic gastronomical culture of pasta, pizzas, and delicious wine. But on top of that, it offers some of the best steaks in the world.
Rich in Culture
Argentina is a cultural exporter of tango, polo, gastronomy, architecture, and soccer. One thing I love about Argentina is that they take pride in what they do. And what they do, they do well. The world’s most competitive Polo teams are usually comprised of Argentines. They are a significant player in soccer (Messi and Argentina just won the World Cup), producers of world-renowned architecture (Las Petrona Towers in Kuala Lumpur), and, best of all, the food. As an avid reader of my blog, you have just learned how to access all these experiences for a fraction of the price.
If you are looking for an affordable place to live that is full of culture and adventure, Argentina could be a perfect choice.
Conclusion
Working with a financial advisor is essential for ex-pats looking to make the most of their move to South America. Brickell Financial Group can help you navigate the financial complexities of living abroad.
A trusted financial advisor can make a huge difference in making your dream retirement possible. Helping with retirement funds, real estate, budgeting, and an overall financial strategy will give you the confidence to make a move that would typically feel outside your comfort zone.
Are you more of a do-it-yourself investor? A robo-advisory like LIBRE is a great option that gives you access to professionally managed accounts, with a modern user interface that makes it enjoyable to use their financial tools to help ensure you are on track to living your dream retirement.
South America is a continent that offers a wealth of opportunities for those looking to live on a budget or even invest. While some Latin American countries may be more expensive than others, there are still plenty of affordable options.
Whether you are looking for adventure, culture, or a laid-back lifestyle, there is something for everyone in these countries in South America. Bolivia, Colombia, and Peru are among the cheapest countries in South America to live in.
These countries offer a rich culture, stunning landscapes, and a low cost of living, making them ideal for those on a budget. Paraguay and Argentina are also affordable options, mainly if you are willing to live outside of the main cities.
Whichever country you choose to live in will be a unique new experience. Some have more ex-pats than others, rich with culture and great food. Living there is an experience you will never forget. You worked hard to get to this point. Let us work hard to get you to the highest point.