WorldTax Compareโ† All Comparisons

Austria vs Paraguay
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡ฆ๐Ÿ‡น Austria
vs
๐Ÿ‡ต๐Ÿ‡พ Paraguay
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0โ€“55%
55% top bracket; bracket creep relief measures
No change
8โ€“10%
10% top; competitive positioning
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
10โ€“20%
Standard 20% maintained
No change
10%
10% IVA maintained
No change
Corporate Tax Rate
Corporate Tax Rate
21%
Reduction to 21% taking effect 2026 (from 23%)
โ–ผ -2.0pp vs 2025
10%
10%; Pillar Two for large MNCs operating in Paraguay
No change
Capital Gains Tax
Capital Gains Tax
27.5%
KESt flat rate unchanged
No change
8โ€“10%
8%/10% maintained
No change
Social Security & Payroll
Social Security / Payroll
~41.5%
Contribution ceiling raised; health costs increasing
โ–ฒ +0.5pp vs 2025
~25.5%
IPS reform discussions; adequacy concerns
No change
State, Regional & Local Taxes

๐Ÿ‡ฆ๐Ÿ‡น Austria โ€” Municipal & Church Taxes

Austria's 9 Bundeslรคnder (states) do not set separate income tax rates โ€” this is federal. However, municipalities levy Kommunalsteuer (municipal payroll tax) at 3% on wages paid by employers, and a Dienstgeberabgabe (employer levy). Church tax (Kirchenbeitrag) is compulsory for registered Catholics at ~1% of income. Vienna and other large cities have additional levies. Property tax (Grundsteuer) rates are set by municipalities within federal parameters.

๐Ÿ‡ต๐Ÿ‡พ Paraguay โ€” Municipal & Departmental Taxes

Paraguay's 17 departments and 254 municipalities levy the Impuesto Inmobiliario (property tax at 1% of assessed value), commercial licence fees (patente comercial), and vehicle registration fees. Asunciรณn has the highest commercial licence fees. The Subsecretarรญa de Estado de Tributaciรณn (SET) administers national taxes. Paraguay has one of Latin America's lowest tax burdens (~12% of GDP) and has used flat low rates to attract foreign residents (MADES visa) and financial activity. No wealth tax exists.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Austria vs Paraguay: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฆ๐Ÿ‡น Austria has a higher top income tax rate (0โ€“55% vs 8โ€“10%). ๐Ÿ‡ต๐Ÿ‡พ Paraguay is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Austria has a higher consumption tax (10โ€“20% vs 10%).

๐Ÿข Corporate Tax: ๐Ÿ‡ต๐Ÿ‡พ Paraguay offers a lower corporate rate (10% vs 21%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ต๐Ÿ‡พ Paraguay taxes investment gains at a lower rate (10% vs 27.5%), benefiting investors.

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