As someone that just obtained my residency in Paraguay, I can speak of my experience. I went down there and met some really nice expats (some Canadian, some German, some South African, and a few locals.) I picked their brains on what they thought of Paraguay, and they were mostly positive on it. I decided while one could do the residency process by ones self, it did involve a lot of steps (that could be accomplished in like 3 days), but in the end I utilized a handler for 2 reasons.
1) I am not yet remotely fluent in Spanish.
2) a handler can (for a fee) speed up the process.
Obtaining the residency involves heading to multiple offices (national police, Interpol, translation, etc) these are spread out around Asunción.
I have a PDF made up of the steps involved.
The usual time to obtain a temporary residency is approx 3 months. For an extra $400 it can be as little as a month but usually 1.5 months.
It is another 2-3 months for a cedula (national ID card) which you use to purchase big ticket items, etc. It's an extra step but worthwhile to have (you can only apply after obtaining temporary residency.). It only involves running around town to multiple locations one more day to apply. You need two Paraguayans to vouch for you, but just making a few friends while socializing I accomplished that in like 2 days, it's like they WANT you to come and are proud you are choosing to come.
I had a positive experience with Paraguay. The people are friendly and not yet jaded by tourists. While it is true the downtown of Asunción lacks that cool area, there are many good neighbourhoods to hang in with lots of shops, restaurants and bars. I frequented a AWESOME steak house for less than what one would pay in Argentina. If you head just outside the nicest expat areas, there are areas with big box stores (like a Costco) that one could grab what ever one desires. No gringo markup. Even going to the main outdoor market (Mercado 4) one never pays the asking price, barter or walk away. I can't emphasize enough how I found the Paraguayans to be friendly and helpful.
I will also say that unlike Mexico where you have a great old town where all the expats go, but then 5 blocks over it turns to a hellhole, Paraguay for the most part lacks that. I travelled all over Asunción and only really found one area that gave me second thoughts. The wealth is spread more evenly there.
It is true that money still talks in Paraguay, You are not supposed to get a driver's licence before getting a cedula, but couple hundred fixes that problem. lol
Bottom line, I am happy I did it... I am back in Canada atm finishing off my preparations to become a non-resident and saying goodbye to Trudeau and all the s**t happening here, and with very low stay requirements, Paraguay residency gives me the freedom to do what I want, and pay hardly any tax on my investments.
I recommend, If one is interested, check out at least Asunción and Encarnacion, you might be impressed. Paraguay is atm one of the cheapest and safest places in South America, so feel free to walk around and hang with the locals. I initially planned to just grab the residency and leave to sever my ties with Canada, but I enjoyed the low-key lifestyle, the leave one alone behaviour, the anti woke, pro freedom nature to the place that I look forward to spending more time there (just not in their summer unless you have a swimming pool! lol... That being said it's not any worse than Thailand during their hot season)
Anyway, I hope this helps.
P.S. I would not wait long to grab residency... From my chilled rooftop pool at my residence, I counted over 20 construction cranes putting up buildings around town, people are moving in.
