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Nicaragua vs Azerbaijan
Tax Rate Comparison

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

🇳🇮 Nicaragua
vs
🇦🇿 Azerbaijan
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–30%
30% top; economic stability fragile
No change
14–25%
Stable; post-war reconstruction boosting economy
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
15%
IVA 15% maintained
No change
18%
18% maintained
No change

Corporate Tax Rate

Corporate Tax Rate
30%
30% IR maintained
No change
20%
20%; Karabakh reconstruction zone incentives
No change

Capital Gains Tax

Capital Gains Tax
15%
15% CGT
No change
20%
20% via income
No change

Social Security & Payroll

Social Security / Payroll
~25.25%
INSS reform pending
No change
~25%
DSMF structure stable; pension adequacy reform
No change
State, Regional & Local Taxes

🇳🇮 NicaraguaMunicipal 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.

🇦🇿 AzerbaijanMunicipal & Local Taxes

Azerbaijan's 67 districts and Baku have limited independent tax powers. The Ministry of Taxes administers all national taxes centrally. Municipalities collect land and property taxes within national frameworks. Oil and gas companies operate under Production Sharing Agreements (PSAs) with the state oil company SOCAR, which have special tax provisions. ASAN (service centres) have modernized tax filing considerably. The Strategic Road Map (2016) targets economic diversification away from oil revenue dependency.

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

Nicaragua vs Azerbaijan: Key Tax Differences (2026)

💰 Income Tax: 🇳🇮 Nicaragua has a higher top income tax rate (0–30% vs 14–25%). 🇦🇿 Azerbaijan is more favourable for high earners.

🛒 VAT/Sales Tax: Azerbaijan has a higher consumption tax (15% vs 18%).

🏢 Corporate Tax: 🇦🇿 Azerbaijan offers a lower corporate rate (20% vs 30%), which can influence business location decisions.

📈 Capital Gains: 🇳🇮 Nicaragua taxes investment gains at a lower rate (15% vs 20%), benefiting investors.

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