Hey r/CryptoTax,
I’ve been looking into ways to lower my tax burden after last year’s mess, and Paraguay keeps coming up as an option. From what I’ve read, they have territorial taxation (0% on foreign income, including crypto gains), and since they still aren’t participating in CRS (no automatic exchange of financial info), you wouldn’t get reported back to your home country.
The idea is to get the residency, rent a small apartment in Asunción, put utilities in my name (electricity, water, etc.), and use the bills as proof of address for KYC on Binance or Bybit. You don’t have to actually live there full-time – just keep the place active and handle mail forwarding if something comes up. The cost of maintaining it seems a lot lower than paying 30-40% in taxes.
Has anyone here done this or something similar? Did it work out for KYC and banking? Any issues with the residency process or with exchanges? Would appreciate any real experiences or if there are better options out there.
Thanks in advance.
I have a friend there. The banks are very unfriendly and if you keep your european bank Im not sure how the exchange will report that. Thailand is better IF you can open a bank account. But you need a long term visa for that.
Thanks for the heads-up – yeah, I've read the same about Paraguayan banks being tough, especially for crypto stuff.
Planning to phase out European accounts anyway and open local ones if needed (even if painful).
Thailand as backup sounds interesting – the visa/banking hurdle is the main issue, right?
Appreciate the input!
Its easy to get a visa but you need a long term stay to open bank account. If you are 50 you can get the retirement visa easily which is a long term visa. There is no tax on crypto but you are suppose to trade on binance TH or Bitkub. In reality its very relaxed and the banks are great once you have the account opened. Welcome to paradise!
Really depends on your current tax residence and citizenship
I'm French, living in France. I understand that for US Citizens would be more difficult.
US citizens have to stay in Puerto Rico for 183 consecutive days minimum and they get a break on capital gains tax.
It’s an island that gets hit with storms, power outages, floods, and things like that. Most people only go there for a week to vacation. To stay there for 6 months or more might be a little rough.
Are you in the US? If so, the US is one of the only countries that still taxes you even if you live full time in another nation. You’d have to renounce your US citizenship.
I'm French, living in France.
But since you would still be living in France, France would still tax this income, wouldn't it? Even though it was generated in another country?
There’s also Puerto Rico.
True, but there are SO MANY requirements to actually qualify (including realizing all unrealized gains to date upon departure to PR)
183 days minimum and proof that you haven’t gone anywhere during those 183 days.
Tropical storms and power outages. It’s no picnic.
That’s where gold bug Peter Schiff lives.
You live in France but want to pretend to be tax resident in a different country by renting and an apartment paying bills?