Cryptocurrencies in Paraguay are legally classified as "Movable Property" under Law 6380/19. The country maintains a "regulated" status for crypto assets, meaning a dedicated reporting framework is in place, and the national territorial tax system applies. This is a critical distinction: only income and gains considered to be "Paraguayan-sourced" are subject to taxation. Foreign-sourced crypto income and gains are currently exempt. The Dirección Nacional de Ingresos Tributarios (DNIT) is the authority responsible for tax administration, operating under Law 6380/19 and the more recent Resolution 47/26, enacted in March 2026. For individual investors, foreign-sourced capital gains from crypto are exempt from tax, regardless of the holding period. This also applies to general income derived from foreign-sourced crypto activities. Conversions between crypto and fiat, or crypto to crypto, on international exchanges are not taxable events. Corporate tax for entities is 10%, with the same territorial sourcing rules applying to crypto activities. No Value Added Tax (VAT) is applied to crypto trading or related services. Specific crypto activities like staking, mining, and DeFi yield 0% tax if they interact with foreign pools or protocols. However, if these activities are considered "Paraguayan-sourced" – for example, mining with local resources or participating in local DeFi platforms – they may be treated as business income and become taxable. Non-fungible tokens (NFTs) are also exempt if foreign-sourced, but reporting is mandatory for transactions exceeding $5,000 annually. Paraguay is implementing a multi-stage crypto taxation roadmap through 2026. Resolution 47/26, effective March 2026, has introduced mandatory reporting for all crypto movements exceeding $5,000 annually by platforms and users, covering various transaction types including donations, inheritances, and NFTs. While current tax rates for foreign-sourced income remain at 0%, future phases are expected to introduce specific rates, deductions, and enhanced compliance verification, particularly for locally-sourced activities.
Tax Rates
| Effective individual rate | 0 |
| Capital gains tax | 0% (foreign-sourced), taxable if locally sourced |
| Income tax on crypto | 0% (foreign source), variable if Paraguayan-sourced |
| Corporate tax | 10% |
| VAT | 0% |
Activity Taxes
| Staking | 0% (foreign pools), taxable if Paraguayan-sourced |
| Mining | 0% (foreign pools), business income treatment if local |
| DeFi | 0% (foreign protocols), taxable if local source |
| NFTs | 0% (foreign), reporting mandatory if >$5,000 annually |
Taxable Events
| Crypto → Fiat | Not taxable (foreign exchange) |
| Crypto → Crypto | Not taxable (foreign swaps) |
Holding Period
| Holding period benefit | Full exemption on foreign gains regardless of holding period |
Sources