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Paraguay vs Andorra
Tax Rate Comparison

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

🇵🇾 Paraguay
vs
🇦🇩 Andorra
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
8–10%
10% top; competitive positioning
No change
0–10%
10% top; EU alignment reforms ongoing
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
10%
10% IVA maintained
No change
4.5%
4.5% IGI — lowest in Europe
No change

Corporate Tax Rate

Corporate Tax Rate
10%
10%; Pillar Two for large MNCs operating in Paraguay
No change
10%
10% IS; EU Association Agreement compliance
No change

Capital Gains Tax

Capital Gains Tax
8–10%
8%/10% maintained
No change
0%
No CGT — key differentiator
No change

Social Security & Payroll

Social Security / Payroll
~25.5%
IPS reform discussions; adequacy concerns
No change
~21.5%
CASS stable; healthcare system well-funded
No change
State, Regional & Local Taxes

🇵🇾 Paraguay — Municipal & Departmental Taxes

Paraguay's 17 departments and 254 municipalities levy the Impuesto Inmobiliario (property tax at 1% of assessed value), commercial licence fees (patente comercial), and vehicle registration fees. Asunción has the highest commercial licence fees. The Subsecretaría de Estado de Tributación (SET) administers national taxes. Paraguay has one of Latin America's lowest tax burdens (~12% of GDP) and has used flat low rates to attract foreign residents (MADES visa) and financial activity. No wealth tax exists.

🇦🇩 Andorra — Parish Taxes & Local Levies

Andorra's 7 parishes (parròquies) levy communal taxes including building and land taxes, commercial licence fees, and local service charges. Andorra only introduced a personal income tax (IRPF) in 2015 and corporate tax (IS) in 2012. This micro-state in the Pyrenees between France and Spain remains a significant tax haven due to very low VAT and no inheritance or capital gains tax. It has an Association Agreement with the EU.

⚠️ 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.

Paraguay vs Andorra: Key Tax Differences (2026)

💰 Income Tax: Paraguay and Andorra have similar top income tax rates (8–10% vs 0–10%).

🛒 VAT/Sales Tax: Paraguay has a higher consumption tax (10% vs 4.5%).

🏢 Corporate Tax: Corporate rates are similar in both countries (10% vs 10%).

📈 Capital Gains: 🇦🇩 Andorra taxes investment gains at a lower rate (0% vs 10%), benefiting investors.

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