Key information for all new and existing residents of Paraguay
The last few days in Paraguay have been very turbulent.
New regulations have been approved, and old ones have begun to be enforced retroactively (!), which are most likely unconstitutional and reduce Paraguay’s appeal to both potential residents and crypto enthusiasts alike.
The Paraguayan government is sending signals that it does not need new residents.
If you are a tax resident of Paraguay or are in the immigration process, we recommend reading the following article in detail.
1. Enforcement of mandatory visits for temporary and permanent residents
Formally mandatory annual visits (for temporary residents) and triennial visits (for permanent residents) were strictly enforced this month. This means that as a temporary resident of Paraguay, you cannot be outside Paraguay for more than 365 days, and as a permanent resident of Paraguay, for more than three years.
At the end of last year, agencies were informed that starting January 1, 2026, mandatory visits would be strictly enforced as a condition for obtaining (or extending) permanent residency. Unfortunately, they have begun applying this retroactively to all clients who were supposed to make a mandatory visit in the first half of 2025—that is, before the authorities announced they would begin enforcing these visits.
If you find yourself in this unfortunate situation, all is not lost. Send an email to migraciones@migraciones.gov.py, attaching a PDF containing a scan of both sides of your cédula, a scan of your passport, a medical report, or another explanation of why you were unable to visit Paraguay during the 365 days of the previous year. Everything must be translated into Spanish.
2. Cancellation of the express service
Starting April 1, 2026, it will no longer be possible to apply for temporary residency, including fingerprint collection, during a single short visit. Applicants for temporary residence must visit Paraguay once to apply for residency, and, once their residency is approved (approximately 1 month later), they may apply for a temporary cédula.
This change does not apply to applicants for permanent residence, for whom the express service will continue to be available, allowing them to apply for permanent residence and have their biometric data collected for their permanent residence card during a single brief visit.
However, the application for a temporary cédula can be combined with the mandatory annual visit within one year (you only need to enter Paraguay using the passport with which you applied for temporary residence, since you will not yet have the cédula).
Advantage: You save an extra trip
Disadvantage: You will wait a year for a cédula, which is required for registration with the tax office (SET), applying for a driver’s license, etc.
We recommend planning your mandatory visits before the end of the designated window during which you must enter Paraguay, to minimize the number of required visits (remember that temporary residents cannot be outside Paraguay for more than 365 days, and permanent residents for more than 3 years).
This means that once your temporary residence is approved, we recommend making the mandatory visit during the 10th–12th month of your temporary residence, so you can apply for permanent residence in the 21st–24th month and avoid a gap of more than 365 days.
3. New Dystopian Crypto Regulation
This is a huge shock for everyone in the crypto community. Still, a new crypto regulation, Resolución General DNIT N° 47/26 of March 10, 2026, has taken effect in Paraguay—and it even applies retroactively to January 1, 2026. Paraguay is introducing mandatory cryptocurrency reporting at the wallet level for residents and platforms.
Note — this is not a new tax, but a new reporting requirement, so no new tax obligations arise for you.
It applies to two groups:
- Any crypto service operating within Paraguay. It must report all crypto transactions to the tax authority.
- All tax residents of Paraguay whose total crypto activity exceeds $5,000 per year (and this applies to virtually any crypto activity, which you likely fall under as a tax resident of Paraguay).
Crypto activities literally mean absolutely everything — buying, selling, exchanging, mining, staking, farming, yielding, airdrops, interest on crypto loans, crypto gifts, sending/receiving (even between your own wallets), creating/burning NFTs, or any sale/purchase using crypto (such as an apartment in Asunción).
Every year, for every crypto transaction carried out, you must report the date and time, wallet addresses or counterparty information, the name of the cryptocurrency, the type of blockchain, the exact amount (to 10 decimal places), the value in USD, fees/gas, the transaction hash, and the wallet type (custodial, non-custodial). This is likely the world’s most aggressive crypto regulation.
It is filed once a year via the Marangatu system (just like other tax forms). It is enforced retroactively from January 1, 2026 (!) for the 2026 fiscal year (filing deadline December 31) → submission deadline March 2027. It requires adding the “959-DJI Criptoactivos” obligation to your RUC (tax identification number) profile.
According to the law, this reporting obligation applies not only to local crypto transactions but also to all your global transactions.
The question is, why does the Paraguayan government want to know about all your crypto transactions, even those that take place outside of Paraguay?
This is likely the first legislative step—we’ll monitor you first and then tax you in the future. This is a major red flag for Paraguay as a country.
Important information: failure to file the aforementioned crypto declaration results in a fine of 1,000,000 PYG (approximately 150 USD).
Dystopian aspects of the regulation
- The regulation is blanket and applies to all crypto users who are tax residents of Paraguay.
- The regulation is very extensive and invasive and applies to all crypto transactions (personally, I make numerous crypto transactions daily, and I also have passive transactions from crypto loans, staking, etc. — If I had to report all of this, I’d spend the whole day doing nothing else — and this every single day of the year).
- Most crypto users won’t be able to comply and will thus automatically be breaking the law (which could be used against them in the future). If the majority of people are breaking a regulation, it automatically takes on a dystopian character.
- Centralizing all crypto transactions in one place for Paraguayan tax residents is extremely dangerous. Paraguay ranks among the most corrupt countries in the world. Paraguay is on par with the Congo. Providing all information about crypto transactions to the Paraguayan tax authority means significantly jeopardizing your privacy and physical safety. Last year, an employee of the French tax authority sold personal information to terrorists about all people who had declared crypto in their tax returns (another source). Subsequently, these people became victims of kidnappings and physical violence. The question is not if, but when a similar situation will arise in Paraguay due to the new crypto legislation.
- Cybersecurity in Paraguay is completely neglected. Just a brief reminder of two massive disasters from last year:
- June 2025: Hackers attacked Paraguayan government institutions and stole the data of 7.4 million people (all Paraguayan citizens). The government refused to pay the ransom, so the entire database was published on the dark web and torrent sites.
- August 2025: A data breach involving more than 200,000 clients of Ueno Bank (including politicians), exposing details of their transactions.
- If the state and leading banks cannot ensure the protection of even basic identification data and fiat transactions, then putting centralized crypto registries in their hands will be a massive disaster just waiting to happen.
New Paraguayan crypto legislation:
- It has completely killed any crypto investments in Paraguay—see the explanation in this video.
- It has completely killed the business of all crypto services in Paraguay — no one who values their privacy will use any Paraguayan crypto services, which, under the new crypto legislation, will be required to implement blanket surveillance. Instead, they will prefer foreign crypto services where this risk does not exist.
- Paraguay’s appeal to everyone is significantly diminished. Other Latin American countries with territorial taxation are far more crypto-friendly, such as Panama, where crypto people can and will move.
Unconstitutionality of the New Crypto Regulation
The new crypto regulation is likely unconstitutional, and therefore, we believe it will soon be repealed. Here are the reasons:
1. Exceeding delegated authority
This is the strongest single reason. Law 7143/23 grants the Director of DNIT the authority to:
“Establish general rules for administrative procedures, issue instructions, and adopt measures necessary for the application, collection, and control of taxes.”
The keyword is “tributos”—taxes. DNIT-47/26 does not impose, collect, or administer any tax. There is currently no cryptocurrency tax in Paraguay. The resolution creates a reporting obligation in the complete absence of any underlying tax liability that it could facilitate. This likely exceeds the scope of the enabling authority—reporting obligations may only be created to support tax administration, not as a standalone control activity.
2. Article 33 of the Constitution: Right to Privacy
Article 33 of the Paraguayan Constitution:
“Personal and family privacy, as well as respect for private life, are inviolable.”
And now reinforced by Law 7593/2025 (the Data Protection Act, enacted in November 2025—just 4 months before DNIT-47/26):
It stipulates that no public or private institution may process personal data without a legal basis
which establishes the new Agencia Nacional de Protección de Datos Personales with executive authority and requires data minimization, proportionality, and purpose limitation.
DNIT-47/26 requires the disclosure of wallet addresses, transaction hash codes, counterparty identities, and funds held. This constitutes the mass collection of highly sensitive financial and personal data.
There is a conflict between DNIT-47/26 and Law 7593/2025 — the DNIT issued a resolution requiring data collection that appears to violate the data protection law adopted four months earlier by the same state. This is a truly strong argument that has not yet been publicly identified.
3. Retroactive Effect
The resolution was issued on March 10, 2026, but applies to the 2026 fiscal year starting January 1. The Paraguayan constitutional principle of irretroactividad de la ley (Article 14 of the Constitution) prohibits the retroactive application of new obligations. Reporting obligations imposed on conduct that occurred before the resolution existed are constitutionally questionable. The argument is clear: people conducting transactions in January and February 2026 were not informed of any reporting obligation.
4. Principle of Legal Reserve
Under Paraguay’s constitutional framework, obligations that significantly affect fundamental rights—particularly privacy and property—must be established by law, not by administrative decision. This is the principle of reserva de ley. The creation of a broad mandatory reporting regime affecting tens of thousands of people, including detailed financial oversight, likely exceeds the scope of what administrative regulation can achieve and requires legislation passed by Congress. This is the same argument that could be applied in almost any civil law jurisdiction.
5. Proportionality
Even if the DNIT had some authority to require reporting, the scope of Regulation 47/26 is largely disproportionate to any legitimate tax administration purpose, given that there is currently no cryptocurrency tax in Paraguay. Requiring transaction hash values, wallet addresses, counterparty identities, and declarations of static holdings for a nonexistent tax fails any proportionality test.
What we recommend to our clients and all Paraguayan tax residents who value their privacy
- Stop using any crypto services or crypto exchanges in Paraguay (X4T, CripEx, BitBase Paraguay, and others), where it is virtually certain that everything about you will be reported.
- Prefer decentralized crypto exchanges and crypto services that are not tied to your name and are KYC-free. For example, Robosats works very well in Paraguay. So far, it does not appear that Paraguay will be able to enforce the aforementioned crypto legislation outside of Paraguay and compel major crypto exchanges (such as Binance and Coinbase) to report information about Paraguayan residents to Paraguayan authorities. Of course, this may change in the future.
- Conduct all crypto income and crypto transactions through a legal entity, not an individual. Route them through a trust or LLC structure (at Liberation.Travel, we’d be happy to help you set up a Panamanian trust or a US, UK, Gibraltar, or other company)
- Change your tax residency to other crypto-friendly countries where similar crypto legislation does not exist, such as Panama or Uruguay, with which we’d be happy to assist you. In these countries, however, you must live there for the majority of the year to obtain tax residency (from this perspective, Paraguay is still the better option).
- Since we are convinced that the new crypto legislation significantly infringes upon the privacy of all our clients and all tax residents of Paraguay — and may realistically threaten their physical safety — we recommend, despite the fact that this constitutes a violation of the law, IGNORING the aforementioned legislation until its unconstitutionality has been analyzed and challenged (this is not legal advice, and everyone should consult their own attorney).
- In the worst-case scenario, we recommend that clients pay the fine for failing to comply with the crypto reporting obligation, which is one million PYG (approx. 150 USD).
At the same time, we call on all individuals affected by this regulation to exert maximum pressure on the Paraguayan government to repeal the aforementioned crypto regulation in its entirety.
We are convinced that this regulation is not only completely ineffective and significantly threatens the privacy and security of Paraguayan tax residents, but also sends a clear signal that Paraguay is a decidedly crypto-hostile country.
We have launched a petition against the new crypto legislation. If you are tax residents, please sign it here and share it!