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Bolivia vs Paraguay
Tax Rate Comparison

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

πŸ‡§πŸ‡΄ Bolivia
vs
πŸ‡΅πŸ‡Ύ Paraguay
Tax Year:

πŸ’° Personal Income Tax Calculator

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

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
13%
RC-IVA 13% maintained
No change
8–10%
10% top; competitive positioning
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
13%
13% IVA; possible reform discussions
No change
10%
10% IVA maintained
No change
Corporate Tax Rate
Corporate Tax Rate
25%
25% IUE; natural gas revenue declining
No change
10%
10%; Pillar Two for large MNCs operating in Paraguay
No change
Capital Gains Tax
Capital Gains Tax
25%
25% via IUE
No change
8–10%
8%/10% maintained
No change
Social Security & Payroll
Social Security / Payroll
~21.5%
AFP system; pension adequacy concerns
No change
~25.5%
IPS reform discussions; adequacy concerns
No change
State, Regional & Local Taxes

πŸ‡§πŸ‡΄ 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.

πŸ‡΅πŸ‡Ύ 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.

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

Bolivia vs Paraguay: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡§πŸ‡΄ Bolivia has a higher top income tax rate (13% vs 8–10%). πŸ‡΅πŸ‡Ύ Paraguay is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Bolivia has a higher consumption tax (13% vs 10%).

🏒 Corporate Tax: πŸ‡΅πŸ‡Ύ Paraguay offers a lower corporate rate (10% vs 25%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡΅πŸ‡Ύ Paraguay taxes investment gains at a lower rate (10% vs 25%), benefiting investors.

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