WorldTax Compareโ† All Comparisons

El Salvador vs Nicaragua
Tax Rate Comparison

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

๐Ÿ‡ธ๐Ÿ‡ป El Salvador
vs
๐Ÿ‡ณ๐Ÿ‡ฎ Nicaragua
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

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

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0โ€“30%
30% top; security improvements boosting economy
No change
0โ€“30%
30% top; economic stability fragile
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
13%
13% IVA stable
No change
15%
IVA 15% maintained
No change
Corporate Tax Rate
Corporate Tax Rate
30%
30%; special economic zones
No change
30%
30% IR maintained
No change
Capital Gains Tax
Capital Gains Tax
10%
10% maintained
No change
15%
15% CGT
No change
Social Security & Payroll
Social Security / Payroll
~15.5%
AFP system; pension adequacy improving
No change
~25.25%
INSS reform pending
No change
State, Regional & Local Taxes

๐Ÿ‡ธ๐Ÿ‡ป El Salvador โ€” Municipal Taxes

El Salvador's 262 municipalities levy local taxes including the impuesto municipal de activo empresarial (business assets tax at 0.1%โ€“1% of net assets), commercial licence fees, and property registration fees. San Salvador municipality has the highest rates. The Ministry of Finance (MH) administers national taxes. El Salvador adopted Bitcoin as legal tender in 2021 (alongside USD), creating unique crypto tax considerations, though the Bitcoin Law was modified in 2025. The country has attracted significant nearshoring and blockchain sector investment.

๐Ÿ‡ณ๐Ÿ‡ฎ 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.

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

El Salvador vs Nicaragua: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: El Salvador and Nicaragua have similar top income tax rates (0โ€“30% vs 0โ€“30%).

๐Ÿ›’ VAT/Sales Tax: Nicaragua has a higher consumption tax (13% vs 15%).

๐Ÿข Corporate Tax: Corporate rates are similar in both countries (30% vs 30%).

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ธ๐Ÿ‡ป El Salvador taxes investment gains at a lower rate (10% vs 15%), benefiting investors.

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