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Paraguay vs Austria
Tax Rate Comparison

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

🇵🇾 Paraguay
vs
🇦🇹 Austria
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
0–55%
55% top bracket; bracket creep relief measures
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
10%
10% IVA maintained
No change
10–20%
Standard 20% maintained
No change

Corporate Tax Rate

Corporate Tax Rate
10%
10%; Pillar Two for large MNCs operating in Paraguay
No change
21%
Reduction to 21% taking effect 2026 (from 23%)
-2.0pp vs 2025

Capital Gains Tax

Capital Gains Tax
8–10%
8%/10% maintained
No change
27.5%
KESt flat rate unchanged
No change

Social Security & Payroll

Social Security / Payroll
~25.5%
IPS reform discussions; adequacy concerns
No change
~41.5%
Contribution ceiling raised; health costs increasing
+0.5pp vs 2025
State, Regional & Local Taxes

🇵🇾 ParaguayMunicipal & 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.

🇦🇹 AustriaMunicipal & Church Taxes

Austria's 9 Bundesländer (states) do not set separate income tax rates — this is federal. However, municipalities levy Kommunalsteuer (municipal payroll tax) at 3% on wages paid by employers, and a Dienstgeberabgabe (employer levy). Church tax (Kirchenbeitrag) is compulsory for registered Catholics at ~1% of income. Vienna and other large cities have additional levies. Property tax (Grundsteuer) rates are set by municipalities within federal parameters.

⚠️ 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 Austria: Key Tax Differences (2026)

💰 Income Tax: 🇦🇹 Austria has a higher top income tax rate (8–10% vs 0–55%). 🇵🇾 Paraguay is more favourable for high earners.

🛒 VAT/Sales Tax: Austria has a higher consumption tax (10% vs 10–20%).

🏢 Corporate Tax: 🇵🇾 Paraguay offers a lower corporate rate (10% vs 21%), which can influence business location decisions.

📈 Capital Gains: 🇵🇾 Paraguay taxes investment gains at a lower rate (10% vs 27.5%), benefiting investors.

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