The cost of living in South America is much lower than costs in the U.S. and Europe.
If you are considering moving to South America on a budget, it’s helpful to know which countries have the lowest cost of living.
Cheapest Places to Live in South America
The cheapest places to live in South America include:
- Colombia
- Paraguay
- Argentina
- Nicaragua
- Brazil
- Bolivia
- Peru
- Venezuela
- Ecuador
- Honduras
- Guatemala
- El Salvador
- Costa Rica
- Chile
1. Colombia
Cost of Living: $546
The minimum cost of living in Colombia is $546 for a single person.
Of course, expenses will vary greatly based on your location within the country and lifestyle.
You can rent an apartment in the city very cheaply.
A house on the outskirts of town will be more expensive.
Just like in the U.S., lifestyles can vary greatly as well.
Higher-income families typically have domestic help, while other families struggle to maintain their necessities.
The average salary in Colombia is 4,690 Colombian Pesos a month, or $1,059.
The low cost of living isn’t the only reason to consider making Colombia your home.
The government has worked to create a country with low crime, a growing economy, and modern cities.
It’s also democratic, offering a familiar government for Americans.
2. Paraguay
Cost of Living: $561
You can live in Paraguay for as little as $561 a month.
A family of four can expect to pay about $1,600 a month.
The cost of living in Paraguay is 62% lower than the U.S. average, and rent is 77% lower.
The currency in Paraguay is the Guarani or Gs. Rent ranges from 2,288,716.65 Gs, or $309, for a one-bedroom apartment, to 5,625,000.00 Gs, or $760, for a three-bedroom apartment in the city.
3. Argentina
Cost of Living: $604
A single person can live for $604 a month in Argentina.
The average cost of living is 60% lower than in the U.S., and rent is an average of 83% cheaper.
Couples can live well on $1,500 a month. It’s less expensive to live outside the city.
A one-bedroom apartment in Buenos Aires costs $500 a month, while a similar apartment outside the city costs about $300 a month.
Apartments begin as low as $218 in other areas, with the average apartment in a more desirable area costing $533.
Argentina is the second largest country in South America, with only Brazil encompassing a larger area.
It’s well known for its delicious food and wine, as well as dancing and music.
Tango originated in Argentina.
Here, it’s considered a way of life, rather than a dance.
The country once enjoyed economic prosperity, thanks to its fertile farmland.
Today, Argentina has dropped from the top 10 richest countries to 63 on the list.
4. Nicaragua
Cost of Living: $614
The average cost of living in Nicaragua is 53% less than the U.S. average, and rent is 80% lower than in the U.S.
The lowest cost of living is $614.
You can live well on $1,000 a month if you are single, and couples can thrive on $2,000 to $4,000 a month.
You can expect to pay $221 for a one-bedroom apartment outside the city center, and $635 for a 3 bedroom in the city center.
The average wage in Nicaragua is $324 per month.
Skilled employees earn about $402 a month, while low-income workers earn $160 per month.
Nicaragua has a growing economy, but it’s still far from a rich country.
30% of residents lived below the poverty line in 2020.
However, it’s a safe country and offers lots of economic opportunities.
You’ll find beautiful beaches and tropical forests, as well as a vibrant culture and friendly people.
5. Brazil
Cost of Living: $675
Brazil has a cost of living of $675 for a single person.
Rent is 80% lower than the U.S. average, and the cost of living is 54% lower here.
A family of four can live comfortably on $1,918.
The average rent in Brazil is $300.
Of course, this varies greatly based on the location and size of the home you rent.
The most expensive city in Brazil is Sao Paulo, with a cost of living of $1,042.
Recife is the least expensive city, with an average cost of living of $763.
The average salary in Brazil is $1,751, with salaries ranging from $444 to $7,813.
Depending on your line of work, you can live very well in Brazil.
Brazil is the largest country in South America, and the fifth largest country in the world.
It has a variety of landscapes, including the Amazon rainforest, dry grasslands, pine forests, wetlands, and a coastal plain.
Brazil has a rich culture and history, and world-renowned architecture.
6. Bolivia
Cost of Living: $690
A single person can live in Bolivia for just $690 a month.
A couple can live very comfortably for $1,500 a month.
A family of four can live on $1,700 a month.
Bolivia’s cost of living is an average of 61% lower than in the United States.
Rent is 83% lower than the U.S. average.
You can rent a nice two-bedroom apartment in Bolivia for $400 a month.
The average salary in Bolivia is $3,000 per month.
Lower-paid workers earn about $2,400 a month, and experienced workers can earn $7,660 per month.
These wages mean that the average couple can live well on an average income.
7. Peru
Cost of Living: $693
Peru’s cost of living is $693 for a single person.
A family of four will need about $1,743 a month to live comfortably.
The cost of living is 56% lower than the U.S. average, and rent is 76% lower than the average in America.
Rent ranges from $330 to $480 for a one-bedroom apartment, depending on the area.
If you need a larger apartment, you’ll pay $408 in most areas, and up to $800 in an expensive neighborhood.
Wages are low in Peru, however.
Minimum wage workers earn just $267 per month.
Unskilled workers can earn about $356, with the average wage being $509.
Highly paid workers earn $1,090.
Despite the low cost of living, it can be difficult for lower-paid workers to get by in Peru, particularly if only one person is working.
Peru is well known for its ancient Incan culture, and Machu Pichu.
Peru’s residents are very welcoming, particularly to foreigners.
It’s a safe country with incredible cuisine and modern technology.
You’ll also find a range of climates, including warm weather on the coasts to cool mountain temperatures.
8. Venezuela
Cost of Living: $770
The cost of living in Venezuela is $770 for a single person on a budget.
A family of four can live in the country for $2,024.
Venezuela is 46% less expensive than the U.S. average, and rent is 87% lower.
A one-bedroom apartment costs $193 outside the city, and $203 in the city.
A three-bedroom home will cost about $343 outside the city, and $393 in the city.
Venezuela does have a minimum wage, but it is low.
The average salary is $145, which can make it difficult to earn enough to live comfortably, particularly for low-income families.
9. Ecuador
Cost of Living: $ 785
The average cost of living for a single person in Ecuador is $785 for a single person and $1,915 for a family of four.
The cost of living is 54% lower than in the U.S., and rent is nearly 80% lower.
Rent for a one-bedroom apartment outside the city is $274 and $358 in the city.
You can expect to pay $486 for a three-bedroom apartment outside the city, and $626 in the city limits.
The lowest salary in Ecuador is $450 per month, and 25% of the residents earn less than $820 per month.
The average salary is $1,470 per month, and the highest wages are around $6,080 each month.
10. Honduras
Cost of Living: $798
Honduras has a cost of living of $798 for a single person.
A family of four can expect to pay $2,143 each month.
Honduras is 49% cheaper than the cost of living in the U.S. Rent is 77% lower than the U.S.
The average wage in Honduras is $2,750, which is enough to live comfortably.
However, unskilled workers can earn significantly less.
Honduras has a lot to offer, including a tropical climate and breathtaking natural landscapes.
You’ll find white sand beaches, jungles, and fertile river valleys.
The infrastructure is similar to that of the U.S.
However, the country is plagued by crime, and economic opportunities can be hard to find.
Frequently Asked Questions
Is South America an Inexpensive Place to Live?
South America has a much lower cost of living than the U.S.
Most countries in South America have a cost of living of about half that in the U.S., and rent is typically 60% to 80% cheaper.
Is South America a Good Place to Live?
Many Americans move to South America due to the low cost of living. It’s particularly cost-effective for retirees.
You can live comfortably on a retirement income, which is tough to do in the U.S.
Many cities have amenities similar to America, and there are many natural landscapes to enjoy.
South Americans are also friendly and tend to be welcoming to foreigners.
How Much Money do I Need to Live in South America?
Depending on the country you live in and where you choose to live, you can get by on $500 to $1,500 a month in South America if you’re single, and $1,500 to $3,000 for a family.
A couple can live comfortably on $2,000 a month in most areas.
