Chile vs Paraguay
Tax Rate Comparison
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π° Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country β side by side.
π¨π± Chile β Municipal & Regional Taxes
Chile's 16 regions and 346 municipalities do not levy separate income taxes. Municipalities charge patente municipal (business licence fee) based on capital, typically 0.25%β0.5% of net equity/year, capped at ~$8,000 USD. Property tax (contribuciones de bienes raΓces) is national in structure but rates vary 0.075%β1.2% by property type. The SII (tax authority) is national. The Royalty Minero (mining royalty) is a significant revenue source in copper-producing regions.
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.
Chile vs Paraguay: Key Tax Differences (2026)
π° Income Tax: π¨π± Chile has a higher top income tax rate (0β40% vs 8β10%). π΅πΎ Paraguay is more favourable for high earners.
π VAT/Sales Tax: Chile has a higher consumption tax (19% vs 10%).
π’ Corporate Tax: π΅πΎ Paraguay offers a lower corporate rate (10% vs 27%), which can influence business location decisions.
π Capital Gains: π΅πΎ Paraguay taxes investment gains at a lower rate (10% vs 22%), benefiting investors.