crypto in paraguay full guide on taxes and laws

Crypto in Paraguay: Taxes & Regulation

Paraguay has a reputation for being a country very open to cryptocurrencies and with favorable legislation both for the development of the sector and from a fiscal point of view. Even if some points are still evolving1, a clear regulatory framework already exists.

Besides being a coveted destination for those who want to avoid capital gains on the sale of cryptocurrencies, which is totally possible thanks to the territorial tax system, Paraguay is also starting to attract Web3 startups. This is thanks to the 2025 reform that introduced, for the first time in South America, a framework for project tokenization2. Today in Paraguay it is possible to tokenize real estate projects, companies, cash flows, and any other type of asset or economic participation, taking advantage of the same clarity and regulation reserved for shares of listed companies.

If you are thinking of transferring your tax residency to Paraguay, do not hesitate to contact us for a free and personalized tax consultation. Our experts will be happy to help you better understand how the Paraguayan tax code applies to your specific case.

infographics showing what crypto related transactions are taxed in Paraguay and how much
It’s common for crypto traders to establish their tax residency in Paraguay

The taxation of cryptocurrencies in Paraguay is regulated by consulta vinculante n.582 of October 2024.3 This is a type of document issued by the DNIT, the tax authority of Paraguay, when specifically questioned on a topic. When a request is “vinculante” (binding), it means that it becomes a tax reference for the entire country that functions on par with a true law.

For those unfamiliar with taxation in Paraguay, normally every type of income or capital gain is regulated by Law 6380/19. This law, which replaces an earlier reform from 1994, is considered the basis of all forms of taxation in Paraguay. Cryptocurrencies, however, were not contemplated in this law. Hence the doubt: how should crypto be considered? Are they an asset? Can they be considered a currency? How should crypto operations be taxed?

Consulta vinculante 582 clarifies all these issues, defining that the treatment of crypto in Paraguay will be as follows:

  1. They are not considered neither currencies nor financial instruments (like stocks or bonds);
  2. They are considered a good, exactly like a phone, a table, or any other object;
  3. Like other objects, it is not necessary to declare how many crypto you own. On this, it is interesting to note that the DNIT is considering changing its attitude and making the declaration necessary4.

Taxation on crypto in Paraguay

The DNIT, with its consulta vinculante, established that:

  1. The sale of cryptocurrencies in exchange for money is subject to 10% IRE (“Impuesto a la Renta Empresarial“, Corporate Tax) on the capital gains generated, in the event that a company makes the sale and that it takes place in Paraguay;
  2. Since natural persons are not subject to IRE but to IRP (“Impuesto a la Renta Personal“, Personal Income Tax), the regulations do not require private individuals to pay taxes on capital gains generated in Paraguay or abroad;
  3. In the case of the sale of goods or services, with payment in cryptocurrencies, it is considered a barter. This means that both parties should apply VAT on the transaction, effectively canceling the net taxation for both. In fact, each of the two parties, even if applying VAT, will then be able to deduct the VAT applied by the counterparty in their tax return for the tax;
  4. The sale of cryptocurrencies is not subject to VAT;
  5. The offering of intermediation services is subject to VAT (10%) only on the commissions applied to customers.

Furthermore, the criterion of territorial tax imposition which always applies to any transaction in Paraguay remains in force. Transactions that occur outside the national territory are not subject to any tax in Paraguay.

Fiscal declaration of cryptocurrencies

The tax declaration, for the moment, is mandatory only when a cryptocurrency transaction gives rise to the payment of a tax. As we explained, this occurs when a company realizes a capital gain or offers an intermediation service, or again for companies and individuals when the payment for a service is made in cryptocurrencies.

Instead, all transactions that are not subject to taxes remain outside the declaration obligations, such as:

  1. The sale of cryptocurrencies outside the national territory, in all cases;
  2. Capital gains realized by natural persons;
  3. The purchase of cryptocurrencies by a private individual, from a Paraguayan or international company;
  4. Proceeds generated from staking and other DeFi activities by private individuals in all cases, or by companies subject to IRE if the income cannot be considered of Paraguayan source;
  5. The simple fact of keeping cryptocurrencies on your wallet.

At the moment, no voluntary declaration mechanisms are foreseen either. The general rule, also valid for other types of taxes, is that only what is subject to taxes in Paraguay is declared. The DNIT has already hinted at wanting to change this mechanism but has not yet followed up on this intention.

If you would like to delve deeper into the topic in a call with our team, you can contact us for free at any time.

Available international and local Exchanges

At the moment there is a regulatory gap regarding the offering of intermediation services for cryptocurrencies in Paraguay. In fact, on the one hand, there is the reform Del mercado de Valores published in 2025 which establishes that only companies registered as “Casas De Bolsa” (brokers) can offer this service in Paraguay.

On the other hand, there is SEPRELAD, the national anti-money laundering authority, which establishes different rules5. SEPRELAD allows every international company to operate in Paraguay, provided it respects some criteria:

  • Application of KYC and KYB;
  • Tracking the origin of funds;
  • Reporting suspicious transactions;
  • Following the same anti-money laundering regulations applied by banks and regulated fintech companies.

In any case, almost all the main cryptocurrency exchanges in the world continue to operate in Paraguay at the moment. Among these, it is possible to use:

  • Binance
  • ByBit
  • OkCoin
  • OKX
  • Crypto.com

Kraken and Coinbase, instead, are currently available only with a limited service.

When it comes to local crypto exchanges, the biggest player is X4T located in Asunción and available also through mobile app and web app. Another famous option is BitBase, not far away. So far no other local crypto exchanges have been licensed by the SEPRELAD.

Sources

  1. https://www.abc.com.py/negocios/2026/02/18/desafios-dnit-criptoactivos-expansion-de-la-facturacion-electronica-y-mayor-formalizacion/ ↩︎
  2. Law 7572/25 Chapter 1, Art. 73, accessible at https://www.bolsadevalores.com.py/wp-content/uploads/2025/11/LEY-N%C2%B0-7.572.-MERCADO-DE-VALORES-Y-PRODUCTOS-2.pdf ↩︎
  3. https://www.dnit.gov.py/documents/20123/422349/Tratamiento+impositivo+de+las+operaciones+con+criptomonedas+N%C2%B0+582+CV.pdf/94a2886c-9965-d1ae-28d6-23ecc30c5372?t=1738678573494 ↩︎
  4. https://www.forbes.com.py/macroeconomia/paraguay-avanza-una-regulacion-clara-criptoactivos-tecnologia-financiera-n76611 ↩︎
  5. https://www.seprelad.gov.py/documentos/Activos%20Virtuales.pdf ↩︎

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