Guatemala vs Nicaragua
Tax Rate Comparison
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💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇬🇹 Guatemala — Municipal Taxes
Guatemala's 340 municipalities levy the Impuesto Único sobre Inmuebles (IUSI — property tax at 0.9% of assessed value above GTQ 2,000), business licences (boleto de ornato), and vehicle stickers. Guatemala City municipality has the highest rates. The Superintendencia de Administración Tributaria (SAT) administers national taxes. Guatemala has among the lowest tax-to-GDP ratios in Latin America (~11–13%), reflecting significant informality and tax avoidance. Tax collection has been a persistent challenge.
🇳🇮 Nicaragua — Municipal Taxes
Nicaragua's 153 municipalities levy the Impuesto de Matrícula (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.
Guatemala vs Nicaragua: Key Tax Differences (2026)
💰 Income Tax: 🇳🇮 Nicaragua has a higher top income tax rate (5–7% vs 0–30%). 🇬🇹 Guatemala is more favourable for high earners.
🛒 VAT/Sales Tax: Nicaragua has a higher consumption tax (12% vs 15%).
🏢 Corporate Tax: 🇬🇹 Guatemala offers a lower corporate rate (28% vs 30%), which can influence business location decisions.
📈 Capital Gains: 🇬🇹 Guatemala taxes investment gains at a lower rate (10% vs 15%), benefiting investors.