Cryptocurrencies in Paraguay: Regulation and Taxation for Expats
Bitcoin, Ethereum, stablecoins, DeFi, NFTs—the world of cryptocurrencies has exploded in recent years, and an increasing number of French-speaking expatriates hold a significant portion of their assets in digital form. The burning question: how are cryptocurrencies taxed in Paraguay? Do they need to be declared? Are they taxed? Can they be freely converted into guaranis or dollars? And most importantly, with new reporting obligations introduced in March 2026, does Paraguay remain a crypto-friendly environment?
Spoiler: yes, more than ever. This guide provides an overview of cryptocurrency regulation and taxation in Paraguay in 2026, including the latest regulatory developments—General Resolution 47/2026 from DNIT—and explains why these new rules are actually good news for serious expatriates.
March 2026: Resolution 47/26 — What's changing (and what isn't)
What just happened
In March 2026, the Dirección Nacional de Ingresos Tributarios (DNIT, Paraguay's tax authority, formerly SET) published General Resolution No. 47/2026. This resolution introduces reporting obligations for cryptocurrency transactions in Paraguay. Specifically:
- Residents and crypto platforms operating in Paraguay must declare digital asset transactions exceeding USD 5,000 per year.
- The data to be provided includes wallet addresses, blockchain networks used, transaction hashes, dollar amounts, and counterparties.
- Reporting is done via the Marangatu system (DNIT's online tax portal).
- The first declarations are due in early 2027 for the 2026 tax year.
- Non-compliance incurs a flat fine of approximately USD 130 (₲ 1,000,000).
What is NOT changing
And this is the crucial point that many alarmist media outlets have overlooked:
- Resolution 47/26 does NOT create ANY new taxes. The text explicitly states that these are reporting obligations, not taxation.
- The principle of territoriality remains intact. Your foreign-sourced crypto gains are still NOT taxed in Paraguay.
- The tax rate remains at a maximum of 10% on any local-sourced crypto income.
- Paraguay does not participate in CRS (OECD's Common Reporting Standard)—your information is not automatically shared with France or Belgium.
In summary: you must now declare your crypto transactions in Paraguay, but you still do not pay tax on your foreign-sourced gains. This is a fundamental distinction.
Why this is actually GOOD news
Yes, you read that correctly. Here's why Resolution 47/26 is an advantage, not a disadvantage, for serious crypto expatriates:
1. It legitimizes your tax position. If the French tax authorities ever ask you to prove that you correctly declared your cryptocurrencies in Paraguay, you can present your Marangatu declarations. Official reporting in your country of residence is the best proof of transparency and good faith. Without reporting, your "0% tax" could seem suspicious. With official reporting, it is documented and legitimate.
2. It stabilizes the regulatory framework. A country with no crypto regulation is one where rules can change abruptly overnight. By introducing a progressive and measured reporting framework, Paraguay shows that it is integrating cryptocurrencies into its tax system rationally—not fighting them. A predictable framework is better than a legal vacuum.
3. It aligns Paraguay with international standards. The resolution follows the recommendations of the FATF (Financial Action Task Force) via GAFILAT (its Latin American branch). This alignment reduces the risk of Paraguay being placed on a gray or black list—which could, in the future, complicate your international banking operations. By proactively complying, Paraguay protects its long-term attractiveness.
4. It costs almost nothing. The fine for non-declaration is USD 130. Reporting is done via Marangatu, the same portal as your regular tax declarations. Our accounting declaration service at €30/month will naturally integrate this crypto reporting into your monthly obligations. No significant extra cost, no insurmountable additional bureaucracy.
5. It separates the wheat from the chaff. The new rules discourage dubious operators and opaque arrangements while reassuring compliant expatriates. If your crypto strategy is legal and transparent—as is the case for all our clients—you have absolutely nothing to fear from more transparency. On the contrary, it protects you.
The complete legal framework in 2026
Cryptocurrencies in Paraguay: neither prohibited nor legal tender
Cryptocurrencies are not prohibited in Paraguay. You can legally buy, hold, sell, and exchange digital assets. However, cryptocurrencies are not recognized as legal tender—the guarani remains the only currency with legal tender status. Cryptocurrencies are treated as goods or assets for tax purposes.
Law 7572/2025 on Securities Markets
In parallel with Resolution 47/26, Law No. 7572/2025 on the Securities and Products Market formalized the supervision of tokenized assets (tokens representing property or credit rights) under the authority of the Superintendence of Securities (SIV). This law does not directly target traditional cryptocurrencies (Bitcoin, Ethereum) but structures the framework for security tokens and digital assets linked to financial rights.
The Central Bank's position
The Central Bank of Paraguay (BCP) reiterates that cryptocurrencies are not guaranteed by the state but has not issued any prohibition. The BCP monitors the sector with a pragmatic—typically Paraguayan—stance that allows the market to develop while gradually strengthening supervision.
Cryptocurrency taxation: the principle of territoriality in action
The key mechanism
Paraguay's principle of tax territoriality fully applies to cryptocurrencies. The decisive question is the source of income:
- Cryptos purchased abroad, on a foreign platform, with foreign funds: foreign source → 0% tax in Paraguay
- Capital gains realized on a foreign platform: foreign source → 0% tax
- Staking, DeFi, lending income from foreign protocols: foreign source → 0% tax
- Crypto mining in Paraguay: local source → 10% tax (IRACIS if via SRL, IRP as a sole proprietorship)
- Sale of cryptos to a Paraguayan buyer: potentially local source → up to 10%
For the vast majority of French-speaking expatriates who hold cryptocurrencies purchased in Europe or on international platforms (Binance, Kraken, Coinbase), the gains remain untaxed foreign-sourced income. Resolution 47/26 has changed nothing regarding this fundamental principle. To understand territoriality in detail, consult our page on Paraguayan tax residency.
Comparison with France
| Criterion | France | Paraguay |
|---|---|---|
| Flat tax on crypto capital gains | 30% | 0% (foreign source) |
| Obligation to declare crypto accounts | Yes (3916-bis) | Yes (Marangatu, from USD 5,000/year) |
| Declaration of capital gains | Yes (2086) + 30% tax | Yes (reporting) but tax = 0% |
| Automatic CRS exchange | Yes | No |
| Crypto → fiat conversion taxed | Yes (30%) | No (foreign source) |
France asks you to declare AND pay 30%. Paraguay now asks you to declare but does NOT make you pay tax on your foreign-sourced gains. Declaration without taxation—it's the best of both worlds.
Practical cases post-Resolution 47/26
Case 1: The HODLer — long-term holding
You hold Bitcoin purchased in France several years ago. You are now a Paraguayan tax resident. You are not selling. No taxable event, neither in France nor in Paraguay. Your crypto assets grow completely tax-free. For reporting, if the value of your annual transactions (including transfers between wallets) exceeds USD 5,000, you declare via Marangatu. But declaring ≠ paying.
Case 2: The active trader
You trade regularly on Binance. In France, each crypto → fiat conversion costs 30%. In Paraguay, your trades on a foreign platform remain untaxed. You declare the activity via Marangatu if the USD 5,000 threshold is reached—which is an administrative formality, not a tax event. Our accountant at €30/month handles this reporting for you.
Case 3: The miner in Paraguay
Mining in Paraguay uses local electricity—it's Paraguayan-sourced income, taxable at 10%. With Resolution 47/26, you must also report your mining transactions. But at 10% tax on net profits and electricity at 0.03-0.05 USD/kWh, mining in Paraguay remains among the most profitable in the world. Structure the activity via a SRL in Paraguay (€1,500, one week) for legal protection and accounting optimization.
Case 4: DeFi and staking
Income from staking, lending, and yield farming on foreign protocols remains foreign-sourced income → 0% tax. Reporting via Marangatu applies if the threshold is met. In practice, thoroughly document your protocols and amounts so your accountant can prepare the declaration correctly.
Case 5: Payment in crypto in Paraguay
Important tip highlighted by DNIT: direct purchase of local goods (real estate, car) with Bitcoin is treated as a barter (permuta) operation, which can trigger a local tax event. To maintain 0% tax, it is legally safer to convert your cryptos to fiat on an international platform and then transfer the funds to your Paraguayan bank account to make the purchase in traditional currency.
Converting crypto to fiat in Paraguay
International platforms: the royal road
You sell your cryptos on Binance, Kraken, or Coinbase, then transfer the funds (USD or EUR) to your Paraguayan account via Wise. The process is traceable, legal, and optimized for fees.
Points to note post-Resolution 47/26:
- Keep complete transaction history—the resolution requires detailed data (wallet, hash, amount, date)
- Notify your bank for large amounts—a transfer of USD 50,000 from Binance will trigger KYC questions. Have your supporting documents ready.
- Document the foreign source of your cryptos—this guarantees 0% taxation
Local P2P exchanges
Binance P2P and Paxful allow exchanging cryptos for guaranis with Paraguayan buyers. Caution: these local transactions could be considered Paraguayan-sourced. For large amounts, prioritize conversion on an international platform then bank transfer.
Bitcoin ATMs
A few Bitcoin ATMs exist in Asunción. High fees (5 to 10%)—only for emergency use.
Mining in Paraguay: an Eldorado that is structuring itself
The Itaipú asset still intact
Paraguay produces a massive surplus of electricity thanks to the Itaipú and Yacyretá dams. The cost of industrial electricity (0.03 to 0.05 USD/kWh) is 3 to 10 times lower than in Europe. This makes Paraguay one of the most profitable mining locations on the planet—and Resolution 47/26 changes nothing about that.
Structuring mining
The new regulation actually encourages the professionalization of the sector. Mining operations structured via an SRL, with a proper industrial electricity contract and transparent tax reporting, are reinforced by the new framework. It is improvisation and opacity that are targeted—not compliant miners.
Profitability after tax
Even with IRACIS at 10% on net mining profits, profitability remains exceptional thanks to cheap electricity. A miner in Paraguay pays 10% tax on their profits. A miner in France pays between 30% and 50% between corporate tax, social charges, and electricity tax. The calculation is quick.
Before leaving: the crypto checklist
In France
- Comply: declare all your crypto accounts (form 3916-bis) and any capital gains
- Check your exposure to exit tax—as detailed in our guide on exit tax
- Do NOT sell significant cryptos just before your departure—wait until you are fully a Paraguayan tax resident
In Paraguay
- Obtain your Paraguayan tax residency (from €1,400, 3 months)—absolute prerequisite
- Register with RUC at DNIT—mandatory for crypto reporting
- Open your bank account to receive your converted funds
- Activate our accounting declaration service at €30/month—now including crypto reporting via Marangatu
- Cut fiscal ties with France (departure declaration, notification to tax authorities)
- Wait until you are fully settled and documented before making major disposals
Summary table: crypto taxation Paraguay vs. France vs. Dubai
| Criterion | Paraguay | France | Dubai |
|---|---|---|---|
| Tax on crypto capital gains (foreign source) | 0% | 30% | 0% |
| Reporting obligation | Yes (from USD 5,000/year) | Yes | In development |
| Monthly cost of living (couple) | USD 1,500-2,500 | €3,500-6,000 | USD 5,000-8,000 |
| Residency cost | €2,500 | N/A (citizen) | USD 5,000-15,000/year |
| Auto. CRS exchange | No | Yes | Yes |
| Mining electricity (USD/kWh) | 0.03-0.05 | 0.20-0.30 | 0.08-0.12 |
| Regulatory framework stability | Structuring (positive) | Stable but heavy | Rapidly evolving |
Conclusion: Paraguay, land of promise for crypto investors—more than ever
Resolution 47/2026 has generated much discussion in the crypto media. Some saw it as the end of the "Paraguayan crypto paradise." In reality, it's quite the opposite: Paraguay is moving from an implicitly favorable framework to an explicitly structured one—and that's better.
The fundamentals remain intact: 0% tax on foreign-sourced crypto gains, unchanged territoriality principle, no CRS participation, cheapest electricity in the world for mining. What's added is a reporting obligation that, far from being a burden, strengthens the credibility of your tax position and the sustainability of the Paraguayan model on the international stage.
For a French-speaking expatriate holding cryptocurrencies, Paraguay now offers the best of both worlds: the tax advantages of a territorial system AND the legal security of a structured regulatory framework. Declaring without paying—that's the magic formula most countries don't offer.
Do you own cryptocurrency and want to optimize your taxes? Contact our team for a personalized action plan: tax residency, crypto reporting, structuring, and comprehensive support in Paraguay.