Colombia vs Nicaragua
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
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๐จ๐ด Colombia โ Departmental & Municipal Taxes
Colombia's 32 departments and 1,102 municipalities levy Industria y Comercio (ICA) โ a gross receipts tax on business activity at 0.2%โ1.4% of revenues. Municipalities set property tax (predial) rates within national ranges. The SIMPLE tax regime integrates various taxes for small businesses. Bogotรก and Medellรญn have higher ICA rates than smaller cities. Departments levy taxes on alcohol, tobacco, and vehicle registration.
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.
Colombia vs Nicaragua: Key Tax Differences (2026)
๐ฐ Income Tax: ๐จ๐ด Colombia has a higher top income tax rate (0โ39% vs 0โ30%). ๐ณ๐ฎ Nicaragua is more favourable for high earners.
๐ VAT/Sales Tax: Colombia has a higher consumption tax (0โ19% vs 15%).
๐ข Corporate Tax: ๐ณ๐ฎ Nicaragua offers a lower corporate rate (30% vs 35%), which can influence business location decisions.