Why more Brazilian Bitcoiners are moving to Paraguay
Brazilian Bitcoiners are moving to Paraguay
For years, Paraguay has been overshadowed by its larger South American neighbors. But now, a growing wave of Brazilian Bitcoin investors and digital entrepreneurs are turning to the landlocked nation as a haven of financial opportunity.
At the heart of this migration is Paraguay’s territorial tax system, which exempts foreign income from taxation, according to Livecoins.
Unlike Brazil, where crypto gains are heavily taxed, Paraguay allows Bitcoiners to keep more of their earnings. Additionally, its lower cost of living, cheap hydroelectric power, and lenient regulations make it an attractive destination for those in the crypto economy.
A Bitcoin-friendly environment
Beyond tax advantages, Paraguay offers an environment that somehow aligns with Bitcoin’s libertarian ethos. The country boasts one of the lowest electricity costs in the world—thanks to the Itaipu Hydroelectric Plant—making Bitcoin mining significantly more profitable. Ciudad del Este, a free-trade zone on the border with Brazil, is already a hub for electronics and crypto businesses.
Paraguay also appeals to those seeking personal and financial autonomy. Gun ownership is more accessible than in Brazil, homeschooling is legal, and local adoption of digital currencies is growing, with ATMs facilitating Bitcoin and stablecoin transactions.
As governments worldwide tighten crypto regulations, Paraguay’s light-touch approach has made it an emerging sanctuary for those seeking financial sovereignty. Whether this trend will continue depends on whether the country can maintain its current balance of low intervention and high opportunity.
Meanwhile, Brazil has solidified its status as a global leader in crypto, with 26 million citizens—12% of the population—owning digital assets. This ranks the country sixth worldwide in crypto adoption, highlighting its growing impact in the sector.
