How to send money to Paraguay? Do it while paying less tax legally

Receiving and sending money to another country has become increasingly costly with the rise in taxes such as IOF, bank fees and spreads. In this tutorial we'll teach you how to send money to Paraguay with the best rates, less taxes and more privacy. 

 Table of contents:

• How do I send money to Paraguay?
• How can you pay fewer taxes when receiving or sending money to Paraguay?
• How do I send money to Paraguay privately?
• ATMs for withdrawing digital assets in Paraguay, where to find them?

How do I send money to Paraguay the traditional way?

There are several companies that do an excellent job of exchanging Paraguayan currency, the Guarani, including Wise, Paypal and Western Union. 

In addition, Paraguayan banks are connected to the SWIFT international payment system. You can make the transfer through traditional banks, such as Itaú, which has a Paraguayan branch.

This method of sending money to Paraguay comes with a few costs:

• IOF of 1.1% for conversion for own use and 0.38% for sending to someone else. 
• Spread, there is a difference between the value of the commercial dollar and how much you pay. 
• Company tax, which varies according to the company and can be applied when converting reals to guaranis and sending the amounts. 

How to pay less tax when sending money to Paraguay? 

Traditional options are easy to use, but ease becomes cost. There are options that are just as simple, but require a certain amount of knowledge, which we'll cover in the next few paragraphs. 

And one of the simplest ways to send money to Paraguay is through dollar-backed stablecoins. Stablecoins such as USDT, USDC and others are used globally, even by banks such as Nubank. USDT alone has a market value of more than 186 billion dollars.

Some Paraguayan brokers accept these stablecoins and the main one is X4T, which even allows cash withdrawals for dollars and guaranis in Paraguay, in the city of Asuncion. 

How do I send money to Paraguay privately?

If, in addition to paying fewer fees, you want to send and receive money to Paraguay privately, this is possible using stablecoins and even bitcoin itself. However, the process is more complex and requires knowledge of privacy solutions. 

If you're in Brazil, the best way is to turn your money into DePix and then exchange it via a decentralized exchange for L-Bitcoin or L-USDT. By doing this, your transactions become private after receiving DePix, allowing you to privately exchange them for synthetic Bitcoin assets (think of them as bitcoin or dollar vouchers). 

After exchanging these amounts, you can then convert them to USDT or Bitcoin and send them to a Paraguayan brokerage account to get guarani. 

Bitcoin boxes for withdrawing Guarani (PYG) easily

And one of the options is to withdraw guarani from a bitcoin ATM. These ATMs often have a basic KYC, which asks for information such as name, address and an official document number. 

The fees are higher than those of brokers such as X4T, but the convenience and agility of using a teller like this is a plus point for those who need agility and cash in hand. 

Below is a list of bitcoin ATMs in Paraguay, generated by Coin ATM Radar:

You can also use digital asset cards, avoiding the IOF and other bank fees. That's why we've made a comparison with best cryptocurrency cards for you.