Bolivia vs Paraguay
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
π° Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country β side by side.
π§π΄ Bolivia β Departmental & Municipal Taxes
Bolivia's 9 departments and 339 municipalities have their own tax powers. Municipalities levy the Impuesto a la Propiedad de Bienes Inmuebles (IPBI) on real property and the Impuesto Municipal a las Transferencias (IMT) on property transfers. Departmental governments receive shares of natural resource royalties. The National Tax Service (SIN) administers national taxes. Bolivia has a unique tax system where there is no personal income tax in the traditional sense β instead, the RC-IVA (complementary VAT) effectively taxes income.
π΅πΎ Paraguay β 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. AsunciΓ³n has the highest commercial licence fees. The SubsecretarΓa de Estado de TributaciΓ³n (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.
Bolivia vs Paraguay: Key Tax Differences (2026)
π° Income Tax: π§π΄ Bolivia has a higher top income tax rate (13% vs 8β10%). π΅πΎ Paraguay is more favourable for high earners.
π VAT/Sales Tax: Bolivia has a higher consumption tax (13% vs 10%).
π’ Corporate Tax: π΅πΎ Paraguay offers a lower corporate rate (10% vs 25%), which can influence business location decisions.
π Capital Gains: π΅πΎ Paraguay taxes investment gains at a lower rate (10% vs 25%), benefiting investors.