If you trade or hold cryptocurrency and you’re assessing your tax situation in Paraguay, it’s essential to understand current regulations before reporting your transactions. Below, we go through how the DNIT treats each type of operation, what reporting obligations have applied since 2026, and what all of this means for residents and foreign investors alike.
How does Paraguay regulate cryptocurrency?
Paraguay doesn’t yet have a dedicated law that comprehensively regulates cryptocurrency, but the Dirección Nacional de Ingresos Tributarios (DNIT) does apply specific tax criteria. Through binding ruling No. 582 issued in 2024, the DNIT classified crypto assets as private securities, a classification that shapes much of their current tax treatment.
The Central Bank of Paraguay (BCP), for its part, doesn’t supervise cryptocurrency or recognize it as legal tender, though there’s no general prohibition on its use or trading either. This combination — no comprehensive law, but defined tax criteria — is common across the region and means you need to stay alert to every regulatory update.
Income tax treatment of cryptocurrency
How crypto gains are taxed depends on who carries out the transaction. When a company sells crypto assets within Paraguay and earns a capital gain, that income is subject to Corporate Income Tax (IRE), at a rate of 10% on the profit generated.
Individuals, on the other hand, are taxed under a different framework: Personal Income Tax (IRP). Under the criteria set by the DNIT, individuals aren’t covered by IRE in the same way companies are, which in practice has led to more favorable interpretations for those trading as individuals rather than through a Paraguayan-registered company.
This is, without question, one of the areas where it’s most worth seeking a personalized review. How you structure your activity — as an individual, a sole proprietorship, or through a registered company — changes your tax burden considerably.
VAT on cryptocurrency transactions
Buying and selling cryptocurrency is exempt from VAT, since it’s treated as a transaction involving private securities under Article 100 of Law No. 6380/2019. This means that when you buy or sell crypto for legal tender, no VAT applies to the transaction itself.
That changes when you use cryptocurrency to pay for goods or services, since the DNIT treats that operation as a barter transaction. In that case, the party handing over the cryptocurrency doesn’t pay VAT for doing so, but whoever receives the good or service must charge VAT on its value, exactly as in any other sale.
Mandatory reporting of crypto asset transactions
Since 2026, DNIT Resolution No. 47/2026 requires taxpayers to report cryptocurrency transactions once their annual volume exceeds 5,000 US dollars, including transactions carried out through foreign exchanges. This report is known as the Declaración Jurada Informativa (DJI) and is filed through the Marangatu system.
- Date and time of each transaction
- Identity of the parties involved or the wallet addresses used
- Type of crypto asset and transaction amount
- Platform or exchange used, including foreign ones
It’s worth stressing that this obligation is purely informational: reporting a transaction doesn’t automatically mean it’s taxable. That said, failing to file when required can lead to penalties, so keeping organized records from day one is well worth the effort.
Do Paraguayan tax residents pay taxes on foreign-held cryptocurrency?
Paraguay applies a territorial tax system, so, generally speaking, foreign-source income isn’t subject to IRP. For anyone trading through international exchanges while holding Paraguayan tax residency, that represents a substantial difference compared with countries that tax worldwide income.
That favorable treatment doesn’t remove the duty to report transactions once the 5,000-dollar annual threshold is crossed, however. Keeping solid documentation — periodic DNIT filings, bank movements, proof of address — also helps support your tax residency status if it’s ever reviewed, whether locally or by your country of origin.
It’s worth keeping in mind that this framework has been built through binding rulings and specific resolutions, not a comprehensive crypto law. Regulations can evolve, and international standards like CARF or DAC8 could introduce new information-exchange requirements in the coming years.
Trading, paying with crypto, and earning commissions: three scenarios, three treatments
The DNIT clearly distinguishes between three common situations, each with its own tax treatment:
- Selling cryptocurrency for legal tender: the gain may be taxed under IRE (companies) or IRP (individuals), depending on who carries out the transaction
- Using crypto to buy goods or services: treated as a barter transaction, with VAT applying to the good or service received rather than the cryptocurrency handed over
- Earning commissions from intermediation or crypto asset management: this activity can be subject to VAT, as it counts as a service
Mixing up these three scenarios is one of the most common mistakes among people starting to trade cryptocurrency in Paraguay. Identifying which one applies to each transaction is the first step toward filing correctly.
The roles of SEPRELAD, the BCP, and the DNIT in oversight
While the DNIT handles the tax side, oversight of cryptocurrency in Paraguay involves more than one agency. Virtual Asset Service Providers (VASPs) must comply with anti-money laundering and counter-terrorism financing obligations under SEPRELAD, in line with Resolution 08/2020 and its implementing regulation 314/2021.
The BCP, as mentioned, doesn’t exercise prudential oversight over cryptocurrency and doesn’t recognize it as legal tender. This division of responsibilities — DNIT for tax matters, SEPRELAD for prevention, the BCP outside the monetary oversight circuit — is key to understanding why Paraguay still doesn’t have a comprehensive law, but rather a set of sector-specific rules worth knowing in full.
What businesses invoicing in cryptocurrency need to know
If your business provides services and gets paid in cryptocurrency, the tax obligation doesn’t disappear because of the payment method used. The income generated is still subject to IRE under the general rules, and you’re still required to issue the corresponding stamped sales invoice, exactly as if payment had been made in guaraníes.
Additionally, if the transaction involves a service, VAT must be calculated on the local-currency equivalent at the time of the transaction. Keeping clear accounting records — including the exchange rate applied at each payment — makes any later DNIT review far easier to handle.
Recommendations for staying tax-safe
Beyond the regulatory framework, there are good practices that reduce the risk of errors when reporting your cryptocurrency transactions:
- Record each transaction in guaraníes or dollars at the exchange rate in effect on the day of the transaction
- Keep receipts, screenshots, and the full history of the wallets used
- File the DJI through Marangatu if your annual volume exceeds 5,000 dollars
- Clearly distinguish whether you’re operating as an individual, a sole proprietorship, or a registered company
- Periodically review regulatory changes, since crypto regulation in Paraguay is still evolving
Why it pays to get advice before filing your transactions
The combination of a still-developing regulatory framework, criteria set through binding rulings, and a new reporting obligation makes filing incorrectly — whether over- or under-reporting — a real risk. A professional review of your specific situation lets you operate with peace of mind, avoiding both taxes you don’t actually owe and penalties for missing a mandatory filing.
Need to get your crypto tax situation in order?
At N30 Global, we advise investors, traders, and businesses on the tax treatment of cryptocurrency in Paraguay, from correctly classifying your transactions to filing the reports required by the DNIT. Get in touch with our team and get your tax situation in order before your next filing deadline.
