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Nicaragua vs Cuba
Tax Rate Comparison

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

🇳🇮 Nicaragua
vs
🇨🇺 Cuba
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
15–50%
Economic crisis continuing; tax system highly distorted
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
15%
IVA 15% maintained
No change
0%
No formal VAT; selective taxes maintained
No change

Corporate Tax Rate

Corporate Tax Rate
30%
30% IR maintained
No change
35%
35%; private sector growing despite restrictions
No change

Capital Gains Tax

Capital Gains Tax
15%
15% CGT
No change
35%
35% nominal
No change

Social Security & Payroll

Social Security / Payroll
~25.25%
INSS reform pending
No change
~14%
Severe pension system stress; currency instability
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.

🇨🇺 CubaProvincial & Municipal Taxes

Cuba's 15 provinces and the special municipality of Isla de la Juventud have limited independent taxing powers under the centrally planned socialist system. The ONAT (Oficina Nacional de Administración Tributaria) administers national taxes, while provincial and municipal governments collect local fees for services. Cuba underwent significant economic reform since 2010 — allowing self-employment (cuentapropistas) and private business (MIPYMES from 2021). Currency unification (2021) significantly restructured the fiscal landscape. The US embargo continues to severely distort the economy.

⚠️ 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 Cuba: Key Tax Differences (2026)

💰 Income Tax: 🇨🇺 Cuba has a higher top income tax rate (0–30% vs 15–50%). 🇳🇮 Nicaragua is more favourable for high earners.

🛒 VAT/Sales Tax: Nicaragua has a higher consumption tax (15% vs 0%).

🏢 Corporate Tax: 🇳🇮 Nicaragua offers a lower corporate rate (30% vs 35%), which can influence business location decisions.

📈 Capital Gains: 🇳🇮 Nicaragua taxes investment gains at a lower rate (15% vs 35%), benefiting investors.

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