Andorra vs Nicaragua
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฆ๐ฉ Andorra โ Parish Taxes & Local Levies
Andorra's 7 parishes (parrรฒquies) levy communal taxes including building and land taxes, commercial licence fees, and local service charges. Andorra only introduced a personal income tax (IRPF) in 2015 and corporate tax (IS) in 2012. This micro-state in the Pyrenees between France and Spain remains a significant tax haven due to very low VAT and no inheritance or capital gains tax. It has an Association Agreement with the EU.
๐ณ๐ฎ Nicaragua โ Municipal Taxes
Nicaragua's 153 municipalities levy the Impuesto de Matrรญcula (2% of prior revenues), Impuesto Municipal sobre Ingresos (IMI at 1% of monthly revenues), property tax (IBI at 1%), and service fees. Nicaragua under Ortega government has faced significant economic disruption from 2018 protests and subsequent international isolation. The economy has stabilized somewhat but remains one of the poorest in Central America. Tax administration reform has been ongoing with support from international institutions.
Andorra vs Nicaragua: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ณ๐ฎ Nicaragua has a higher top income tax rate (0โ10% vs 0โ30%). ๐ฆ๐ฉ Andorra is more favourable for high earners.
๐ VAT/Sales Tax: Nicaragua has a higher consumption tax (4.5% vs 15%).
๐ข Corporate Tax: ๐ฆ๐ฉ Andorra offers a lower corporate rate (10% vs 30%), which can influence business location decisions.
๐ Capital Gains: ๐ฆ๐ฉ Andorra taxes investment gains at a lower rate (0% vs 15%), benefiting investors.