Cheap Places to Go in South America – The Best Budget Destinations

Introduction

Let’s get one thing straight—South America can be cheap, but only if you choose the right destinations and don’t travel like a clueless tourist.

Some places are absolute budget goldmines—where you can eat incredible food for a few euros, take long-distance buses for pocket change, and stay in comfortable hostels without selling a kidney. Then there are places where prices will punch you in the face. If you think you can waltz into Rio de Janeiro or Santiago and live like a king on a backpacker budget, you’re in for a brutal reality check.

South America is not one giant budget-friendly paradise. Some countries are insanely cheap (Bolivia, Ecuador, Paraguay), while others—Argentina (if you don’t know how to pay), Chile, Brazil’s major cities—can burn through your budget fast. The trick is knowing where to go, what to avoid, and how to travel smart.

I’ve spent months traveling through South America, and I’ve seen both sides. I’ve had amazing, dirt-cheap meals for €3 and I’ve been charged €10 for a terrible coffee in a touristy part of Buenos Aires. I’ve taken luxury long-distance buses for less than €20 and I’ve been quoted €50 for a one-hour taxi ride.

This guide is here to save you from the overpriced nonsense. I’ll tell you exactly which destinations in South America are truly cheap, which ones are overrated budget killers, and how to travel here without going broke.

The Best Cheap Places to Go in South America

When I first started traveling South America, I made a classic rookie mistake—I assumed everything was cheap. I landed in Rio de Janeiro, grabbed a coffee at some trendy café near Copacabana, and nearly choked when I saw the price: €6 for a basic cappuccino. Not even a fancy one. Just foam and overpriced disappointment.

That was my first wake-up call. South America isn’t cheap everywhere, and if you’re not paying attention, your budget will disappear faster than a tourist’s phone in downtown Bogotá. But if you know where to go? You can live like a king on €20–€30 a day, eating amazing food, staying in decent places, and seeing some of the most mind-blowing landscapes on the planet for next to nothing.

Here are the real budget-friendly destinations in South America—the places where your money actually stretches, where meals don’t cost as much as in Paris, and where you’re not being scammed every time you get into a taxi.

1. Bolivia – So Cheap, It Feels Like a Glitch in the System

Bolivia is the cheapest country I’ve ever been to—and I’ve traveled through Southeast Asia, Eastern Europe, and some seriously low-budget places. This country is so ridiculously affordable that at times, I felt like I was stealing.

In La Paz, I went to a local market and ordered a massive plate of rice, chicken, potatoes, salad, and soup for €3. I double-checked the price with the vendor, convinced I had misheard. Nope. Three euros. That same meal in Buenos Aires? €12–€15, easily.

Daily budget: €20–€30 (and that’s if you’re not even trying to save)
Where your money goes the furthest:

Salar de Uyuni (Salt Flats) – A three-day tour of one of the most surreal landscapes on Earth for under €100? Absolute steal.
La Paz – The chaotic capital where cheap street food and hostel dorms go for under €10.
Sucre – A colonial gem where you can get a private room for €15 and still have money left for beers.

Why Bolivia is so cheap:

No tourist markups—because not that many tourists go.
Public transport is hilariously cheap. I once took a six-hour bus for €6.
Food prices feel like a joke. You can eat well for €5 a day, easily.

If you’re looking for the absolute cheapest place to go in South America, this is it.

2. Ecuador – The Underrated Budget King of South America

I don’t know why Ecuador isn’t more popular. It’s got stunning Andean landscapes, a coastline full of dirt-cheap beach towns, and one of the most interesting capitals in South America—yet nobody talks about it.

I spent a month in Ecuador, and I never once felt like I was overpaying for anything. Set lunches cost €3–€5, hostels were under €10, and intercity buses were so cheap it felt like the drivers were paying me to ride.

Daily budget: €25–€35
Where your money goes the furthest:

Quito – A high-altitude colonial city with cheap hostels and some of the best street food I’ve ever had.
Baños – The adventure capital of Ecuador, where you can go white-water rafting, hike to waterfalls, or soak in hot springs—all on a backpacker budget.
Canoa – A quiet beach town where beer is €1, seafood meals cost €5, and hostels practically give rooms away.

Why Ecuador is so cheap:

Food is ridiculously affordable. You can eat three full meals a day for under €10.
Intercity buses cost €1 per hour of travel. I once took a five-hour bus ride for €5. Try doing that in Brazil.
Most attractions are nature-based (aka free). You don’t need expensive tours—just show up and explore.

If you want cheap places to go with epic landscapes, good food, and no crowds, Ecuador is a winner.

3. Colombia – Cheap, Beautiful, and Not as Dangerous as Your Mom Thinks

Every time I told someone I was going to Colombia, they gave me the same look—the "are you trying to get kidnapped?" look. Spoiler: I didn’t get kidnapped, and instead, I found one of the most budget-friendly and exciting countries in South America.

Colombia is a weird mix of absurdly cheap and sneakily expensive. If you eat at local places, take public transport, and avoid tourist traps, you’ll spend €25–€40 a day easily. But if you start dining in fancy restaurants in Medellín or getting taxis everywhere, your budget will disappear.

Daily budget: €25–€40
Where your money goes the furthest:

Medellín – Cheap metro, affordable hostels, and a great nightlife scene without insane drink prices.
Salento & the Coffee Region – Stunning landscapes, €2 coffee farm tours, and €5 meals.
Santa Marta & the Caribbean Coast – Beautiful beaches without Brazilian price tags.

Why Colombia is cheap:

Local restaurants offer huge meals for €3–€6.
Domestic flights are insanely cheap (often under €30).
Beer is cheaper than bottled water in some places. No complaints.

Colombia is one of the best cheap places to go if you want beaches, mountains, and vibrant city life—all without spending a fortune.

4. Paraguay – So Cheap, You’ll Wonder If They Forgot to Update Their Prices

I’ll be honest—Paraguay wasn’t on my radar at first. It’s not a “bucket list” destination, and nobody really talks about it. But that’s exactly why it’s one of the cheapest places to go in South America.

Paraguay is so off the tourist track that everything is cheaper—accommodation, food, transport, even beer. I stayed in a decent private room for €15, ate meals for €3–€5, and took local buses for literal pocket change.

Daily budget: €15–€25
Where your money goes the furthest:

Asunción – The capital, where food, transport, and accommodation are dirt cheap.
Jesuit Ruins – Fascinating historical sites with no crowds and low entrance fees.
Ciudad del Este – Border town known for ridiculously cheap shopping.

Why Paraguay is so cheap:

Barely any tourism = no tourist pricing.
Cost of living is one of the lowest in South America.
Nobody has realized how cheap it is yet—so take advantage before they do.

If you want a ridiculously cheap place to go in South America that almost no one visits, Paraguay is the spot.

Where You’ll Spend More Than Expected

Look, not every country in South America is a budget travel dream. Some places love to market themselves as “affordable” but will bleed your wallet dry the second you arrive. I’ve been to places where I expected to live cheaply, only to find out that basic things like transport, food, and even water were stupidly expensive.

The destinations below? They’re the sneaky budget killers of South America. If you go, be prepared—or better yet, go somewhere cheaper.

1. Argentina – Cheap If You Play the Currency Game (Otherwise, It’s a Rip-Off)

I love Argentina. The food is amazing, the landscapes are unreal, and the cities have this gritty, romantic charm. But it is also one of the most financially confusing places I have ever traveled.

Argentina has two exchange rates—the official one (a joke) and the “Blue Dollar” rate, which can give you twice as much money for the same amount of foreign currency. If you use your credit card at official exchange rates, congratulations, you just paid double for everything.

Daily budget: €25–€50 (if you use the Blue Dollar), €50+ (if you don’t)
Where your money disappears fast:

Buenos Aires – Accommodation, restaurants, and bars cost as much as Europe if you pay the wrong way.
Patagonia – One of the most expensive regions in South America—beautiful, but brutal on your budget.
Tourist activities – Wine tours, glacier hikes, and national park fees aren’t cheap.

Why Argentina is expensive:

Inflation is out of control, and prices change literally every week.
Anything priced in USD (flights, tours, some hotels) is not budget-friendly.
If you don’t exchange money properly, you’re screwed.

If you do Argentina the right way—using cash, paying in pesos at the Blue Dollar rate, and eating at local restaurants—you can keep it affordable. But if you travel here without understanding the currency situation? It’ll be one of the most expensive trips of your life.

2. Brazil – The Ultimate Budget Trap

Brazil is one of the most misleading countries in South America. People assume it’s cheap just because it’s in South America. Wrong.

If you’re picturing dirt-cheap meals, budget hostels, and cheap transport, get ready for disappointment—especially if you stay in Rio or São Paulo. Brazil is huge, and distances between cities are insane. Want to take a bus between major destinations? It’ll cost as much as a flight.

Daily budget: €35–€60 (outside Rio and São Paulo), €50+ (in tourist areas)
Where your money disappears fast:

Rio de Janeiro & São Paulo – Expensive accommodation, overpriced restaurants, and taxis that will overcharge you in a second.
Long-distance transport – Domestic flights can be cheap if booked in advance, but last-minute? Ridiculously expensive.
Food & drinks in tourist areas – A caipirinha on Copacabana Beach can cost more than a full meal in Bolivia.

Why Brazil is expensive:

Tourist areas have Western European prices.
Domestic travel is costly—buses are long and expensive, and flights aren’t always cheap.
Scams and overcharging are common—expect to pay a “tourist price” unless you know the local tricks.

Brazil isn’t impossible to do cheaply, but you have to get out of the big cities. Salvador, Florianópolis, and the Pantanal offer a better experience for half the price.

3. Chile – Almost as Expensive as Europe (But No One Talks About It)

Chile might be the most expensive country in South America that no one warns you about. I expected it to be a little pricier than Bolivia or Peru, but I didn’t realize that basic things—food, transport, accommodation—would cost almost as much as in Spain or Italy.

Daily budget: €40–€70 (if you’re careful), €70+ (if you’re not)
Where your money disappears fast:

Accommodation – Even hostels charge €15–€25 for dorm beds.
Transport – Long-distance buses are comfortable, but pricey.
Food – Unless you eat in markets, restaurants charge Western prices.

Why Chile is expensive:

The economy is stronger than most of South America.
No extreme inflation, so prices stay high.
Patagonia is a budget-killer—absolutely stunning, but ridiculously overpriced.

If you’re on a tight budget, stick to northern Chile, where things are a little more affordable. The Atacama Desert and coastal cities offer great experiences without the insane price tags.

How to Travel Cheap in South America (Without Screwing Yourself Over)

If you think just showing up in South America automatically means cheap travel, you’re dead wrong. You can absolutely travel here on a budget—but only if you know what you’re doing. If you don’t, you’ll end up paying way too much for food, getting scammed on transport, and wondering why your “cheap” South American trip is costing as much as Europe.

After months of traveling through this continent, I learned the hard way what works, what doesn’t, and what will destroy your budget. Here’s how to actually save money while traveling South America—without living like a monk or missing out on the best experiences.

1. Eat Like a Local, Not a Tourist (Or Get Ready to Overpay for Bad Food)

If you’re spending €10–€15 per meal in South America, you’re doing it wrong. Locals don’t pay that much, so why should you?

The best meals I had in South America were at street stalls, markets, and hole-in-the-wall restaurants. These places serve huge portions of amazing food for less than €5. The worst meals? Fancy “gringo-friendly” cafés in tourist areas charging €15 for bland, overpriced nonsense.

How to eat cheap in South America:

Eat at local markets. They have “menú del día” or set lunches for €3–€6, including soup, a main dish, and a drink.
Street food is your best friend. A massive plate of lomo saltado in Peru or an empanada feast in Colombia for €2–€5? Absolute win.
Avoid tourist restaurants. If the menu is in five languages, expect to pay three times the local price.
Use delivery apps like Rappi and iFood. They often have discounted meals cheaper than eating out.

Biggest mistake to avoid: Sitting down at a “traditional” restaurant in a tourist area and paying €12 for a meal you could’ve had for €4 around the corner.

2. Use Buses, Not Flights (Unless You Book in Advance)

South America is massive. If you don’t plan your transport properly, you will spend a fortune just moving between cities.

Flights can be cheap—but only if you book early. Otherwise, long-distance buses are the best way to travel cheap in South America. Some are so nice they put European buses to shame.

How to save money on transport:

Book buses in advance—same-day tickets cost way more.
Use night buses for long distances—they’re cheap, comfortable, and save you a night’s accommodation.
Compare flight vs. bus prices. Sometimes, a budget flight is cheaper than a bus ticket (especially in Brazil and Argentina).
Avoid taxis when possible. They love overcharging tourists—use Uber, Bolt, or take public transport instead.

Biggest mistake to avoid: Showing up at the bus station without a ticket and getting charged double for a last-minute seat.

3. Stay in Guesthouses and Hostels (Not Always Airbnb)

Some people automatically book Airbnbs thinking they’re cheaper. They’re usually not. In many parts of South America, hostels, guesthouses, and budget hotels offer better deals and don’t hit you with sneaky cleaning fees.

How to find cheap accommodation in South America:

Hostels are your best bet in major cities—€5–€15 per night for dorms, €20–€30 for private rooms.
In smaller towns, guesthouses and family-run hotels are better than hostels.
Airbnb is only worth it if you’re staying long-term. Otherwise, service fees make it more expensive than hotels.
Negotiate for long stays. Many places will give you a discount if you stay a week or more.

Biggest mistake to avoid: Booking an Airbnb for one or two nights and realizing it’s twice the price of a hostel.

4. Travel in the Offseason (Or Pay Double for Everything)

If you visit South America during peak season (December to February), you’re making your trip twice as expensive for no reason. Accommodation prices skyrocket, flights cost more, and you’ll be stuck in crowds.

The smart way to do it:

Visit in shoulder seasons. April–June and September–November are cheaper and way less crowded.
Skip holiday weeks. Carnival, New Year’s, and Easter? Absolute price gouging.
Some places have opposite peak seasons. For example, Patagonia is best from October–April, but the beaches in northern Brazil are cheaper in those months.

Biggest mistake to avoid: Booking a last-minute trip to Rio in January and wondering why hostels are charging €50 per dorm bed.

5. Take Advantage of Free and Cheap Activities

Not everything worth doing in South America comes with a high price tag. Some of the best experiences cost absolutely nothing.

Free and cheap activities worth doing:

Hiking – Almost every country has stunning, free trails.
Free city walking tours – Just tip your guide.
Beaches – Brazil, Colombia, Ecuador, and Uruguay have incredible free beaches.
Cheap museum days – Many museums offer free entry once a week.
Markets – Wandering a local market is a free cultural experience (and the best place to eat).

Biggest mistake to avoid: Paying €50 for a “city tour” when you could just do a free walking tour.

Conclusion

South America is still a budget traveler’s dream—if you choose the right places. If you want the absolute cheapest destination, go to Bolivia. For a balance of affordability and comfort, Ecuador is your best bet. Colombia offers cheap adventure and beaches, while Paraguay is the cheapest, most underrated country on the continent.

If you’re on a budget, avoid Argentina (unless you master the currency tricks), Brazil’s big cities, and Chile, which is overpriced compared to its neighbors. The key to keeping costs low? Eat like a local, take long-distance buses, skip overpriced tours, and travel in the offseason. Get it right, and South America is still one of the best cheap places to go in the world. Get it wrong, and you’ll wonder why you’re spending as much as in Europe.