Taxation of cryptocurrencies in Paraguay

Is it legal to use cryptocurrencies in Paraguay?

The short answer is yes, is legal. But (because there is always a “but”), that does not mean that it is fully regulated.

Paraguay does not prohibit the use of cryptocurrencies, You can buy, sell, invest or make payments between parties that accept them. You can have bitcoin, ethereum, or the memecoin of your choice without anyone coming to confiscate it.

What it is necessary to understand is that the country is still has no specific law regulating cryptocurrencies as official currency, therefore it is necessary to understand the cryptocurrency taxes in Paraguay.

That is to say, are not backed or controlled by the Central Bank., or by any other financial authority.

That's right: like any asset that can generate income or value, cryptocurrencies come under the tax radar, The National Directorate of Tax Revenues (DNIT) has already issued very clear criteria on the following issues how certain transactions should be taxed.

Even related activities, such as the validation of transactions or the intensive use of technological resources, are also beginning to be contemplated within this tax landscape, as long as you comply with the conditions of energy use and the corresponding records. However, the ANDE is already very attentive to ensure that no one “hooks in” without permission.

Do I have to pay taxes on my bitcoins?

Yes, it is considered within the territory if it is paid, if it is considered foreign income it is tax exempt. Although the world of cryptocurrencies seems to be a parallel universe with no rules, in Paraguay there is already serious talk about how to regulate it..

Currently, there is no specific law to comprehensively regulate the use of cryptocurrencies. But that does not mean that the issue has been abandoned: in Congress, the following have already been presented several bills to create a legal framework to bring order to this new ecosystem.

Who are at the table? None other than the MITIC (Technology), the SEPRELAD (to avoid money laundering), the ANDE (due to energy consumption in mining), the National Securities Commission, and even the very Central Bank of Paraguay.

In the meantime, taxes were not long in coming (because we know that where there is profit, there is taxation).

The National Directorate of Tax Revenues (DNIT) issued a statement in a press release on binding consultation, clarifying how the Paraguayan government views cryptocurrencies:

🚫 They are not official money
💸 They are not financial assets
💳 Neither are payment instruments recognized by law

Situation	Tax residence	Taxable income	Applicable tax
Crypto sales outside Paraguay	Resident	❌ Non-taxable (foreign source)	0 %
Crypto sales within Paraguay	Resident	✅ Yes, if the transaction is carried out within the country.	8 % IRP-RGC (capital gain)
Crypto sales (foreign source)	Non-resident (foreigners)	❌ Non-taxable	0 % (Paraguayan income only)
Crypto sales (local source)	Non-resident	✅ Yes	15 % or rate applicable to non-residents according to type of income
Crypto mining in Paraguay	Resident / Non-resident	✅ If performed within Paraguay → local rent.	8-10 % IRP or 10 % IRE (depending on income and activity)

What are cryptocurrencies for the Paraguayan Treasury?

For the DNIT (Paraguayan Treasury), the cryptocurrencies are «private values», i.e., digital assets that are mostly used as investment vehicle or of private-to-private exchange, and whose value depends 100% on the game of supply and demand in the virtual world.

This means that even if they do not have a specific law, do have a defined tax frameworkif you generate income with cryptos, you have to pay at the cash register.

How do I pay taxes in Paraguay if I use cryptocurrencies?

It's time to talk about what no one likes but everyone should know!
In Paraguay, the tax treatment of cryptocurrencies depends on how you use them. The DNIT distinguishes three main scenarios to apply taxes such as IRE (Corporate Income Tax) and VAT (Value Added Tax):

It is not the same to make trading, which buy a notebook with bitcoin, or that charge commissions for helping others move their cryptocurrency. And therefore, the tax treatment is divided into:

1. Cryptocurrency Trading 🪙↔💵

When you sell your cryptocurrencies and receive in return legal tender (guaraníes, dollars, etc.), the government interprets it as a income-generating activity. And like any profit, is subject to IRE (Corporate Income Tax).

Rate10% on gain.
ExampleYou buy 1 BTC at Gs. 50,000,000 and then sell it at Gs. 60.000.000 → Profit: Gs. 10,000,000 → You pay IRE of 10% on that profit (Gs. 1,000,000).

VATCryptocurrency trading as such, you do not pay VAT because it is considered a transaction with private securities, which are exempted according to Article 100 of Law 6380/2019.

📌 OjoAlthough it looks like a common sale and purchase, for DNIT this is not like selling a used bike, this is a digital asset that can generate income!.

2. Exchange with cryptocurrencies (exchange for goods or services).

If you use cryptos to pay for something (a pizza, a notebook, other crypto), the transaction is considered a swap, i.e, a modern barter with blockchain technology.

• The cryptocurrency is VAT exempt as a private value.

• But the good or service received may be taxed., The seller has to liquidate the VAT on it.

Example:

You buy a laptop valued at Gs. 10.000.000 paying with 0,2 BTC.
You (the buyer): you do not pay VAT for delivering the crypto.
The seller: must pay VAT on the laptop (approx. Gs. 1,000,000).

📌 This affects both the IRE (for rent) as well as to the VAT (for the provision or delivery of the good or service).

3. Commissions or services related to cryptocurrencies 💼💰

If you are an intermediary or provide services related to crypto (e.g., buy and sell for third parties, manage wallets, charge commissions in P2P exchanges), the DNIT considers it as a taxable service activity.

You have to issue receipts stamped, declare income and pay taxes accordingly.

EPractical example:

You intermediate a sale of USDT and charge Gs. 500,000 for your service.
You pay IRE on that income.
You must apply the 10% VAT on the Gs. 500,000 (Gs. 50,000).

In addition: you have to issue sales receipts. stamped and maintain your records like any other service provider.

📌 In a nutshellIf you earn money with cryptos, you have to declare it. How and how much depends on what type of operation you do y where you make it.

What if I just P2P or buy for myself?

If you do not generate income or do business with your cryptos (you only buy for storage or sporadic payments), it is unlikely that you have significant tax liabilities. But be careful: if your operations grow or start making profits, you will have to register and comply accordingly.

I am a foreigner, I have tax residency in Paraguay, but I operate from abroad... Do I pay taxes?

This is one of the most common questions among digital nomads, investors and crypto-enthusiasts who chose Paraguay as a tax base (for its benefits, low taxes and... well, for the tereré too 😎).

lhe doubt is valid: “If I have my tax residence in Paraguay, but all my operations with cryptocurrencies are done outside the country, without Paraguayan clients, without local income, without touching guaraníes, do I still have to pay taxes here?”

And the answer is: depends on where your money comes from and how you generate it.

In Paraguay, taxes apply only to income from Paraguayan sources. This means that, if your activity generates income from the outside, You are not obliged to pay tax on them, as long as you keep everything off the local radar: no clients, no services, no operational structure within the country.

In the end, cheap or fast can end up being a nightmare. So take your time to do everything right and not risk problems in the future. Our team advises you, accompanies you so that you understand all your obligations. contact us at