Paraguay
countryParaguay taxes only local income under Law 6380/19, so crypto gains realized on international exchanges are 0% for residents — and it is not a CARF signatory as of mid-2026. Residency is among the cheapest anywhere, roughly $1,000–2,000 in fees. The catch: route proceeds through local banks and they may be reclassified as Paraguayan-source income taxed at 8–10%.
Bitcoin tax treatment
Foreign-source income is untaxed under the territorial system, so crypto gains realized on international exchanges are generally 0% for residents as of mid-2026; gains routed through local banks or brokers risk reclassification as local-source income taxed at 8–10%. A new reporting rule (DNIT 47, March 2026) adds paperwork without changing rates.
territorial taxation: yes
Getting in
Residency: Temporary residency costs roughly $1,000–2,000 in fees with basic documents, convertible to permanent residency after about 2 years; tax residency requires genuine presence or economic ties.
Citizenship: Naturalization is legally possible after 3 years of residence, but in practice demands real physical presence and is granted slowly.
Regime stability — the honest note
Low taxes here reflect institutional thinness as much as policy choice — little case law, shifting reporting rules (DNIT 47 in March 2026), and enforcement that could formalize in either direction.
Verified 2026-06-12. Tax law is paper, not bedrock — verify against primary sources before moving anything that matters. This is not tax or legal advice.