Brazil vs Nicaragua
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
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๐ง๐ท Brazil โ State & Municipal Taxes
Brazil has one of the world's most complex tax systems. States levy ICMS at 7%โ18% varying by state. Municipalities levy ISS (services tax) at 2%โ5% and IPTU (urban property tax). A sweeping tax reform (EC 132/2023) is gradually replacing ICMS/ISS with unified IBS and CBS taxes through 2033. States impose ITCMD (inheritance/gift tax) up to 8%.
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.
Brazil vs Nicaragua: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ณ๐ฎ Nicaragua has a higher top income tax rate (0โ27.5% vs 0โ30%). ๐ง๐ท Brazil is more favourable for high earners.
๐ VAT/Sales Tax: Brazil has a higher consumption tax (~27.5% combined vs 15%).
๐ข Corporate Tax: ๐ณ๐ฎ Nicaragua offers a lower corporate rate (30% vs 34%), which can influence business location decisions.
๐ Capital Gains: ๐ณ๐ฎ Nicaragua taxes investment gains at a lower rate (15% vs 22.5%), benefiting investors.