WorldTax CompareAll Comparisons

Paraguay vs Barbados
Tax Rate Comparison

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

🇵🇾 Paraguay
vs
🇧🇧 Barbados
Tax Year:

💰 Personal Income Tax Calculator

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
8–10%
10% top; competitive positioning
No change
12.5–28.5%
28.5% top; competitive Caribbean jurisdiction
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
10%
10% IVA maintained
No change
17.5%
17.5% stable
No change

Corporate Tax Rate

Corporate Tax Rate
10%
10%; Pillar Two for large MNCs operating in Paraguay
No change
5.5–9%
Tiered rate; Pillar Two compliance for large groups
No change

Capital Gains Tax

Capital Gains Tax
8–10%
8%/10% maintained
No change
0%
No CGT — sustained advantage
No change

Social Security & Payroll

Social Security / Payroll
~25.5%
IPS reform discussions; adequacy concerns
No change
~18.1%
NIS contributions; pension reform needed
No change
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.

🇧🇧 BarbadosParish Councils & Land Tax

Barbados's 11 parishes have parish councils that levy land tax at 0.1%–0.7% of site value. Barbados has long been a significant international business and financial centre, particularly for Canadian companies. Major tax reform in 2019 aligned Barbados with OECD BEPS standards. A tiered corporate tax rate structure was introduced. Barbados was removed from the EU tax haven blacklist following these reforms and maintains competitiveness as an IFC.

⚠️ 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 Barbados: Key Tax Differences (2026)

💰 Income Tax: 🇧🇧 Barbados has a higher top income tax rate (8–10% vs 12.5–28.5%). 🇵🇾 Paraguay is more favourable for high earners.

🛒 VAT/Sales Tax: Barbados has a higher consumption tax (10% vs 17.5%).

🏢 Corporate Tax: 🇧🇧 Barbados offers a lower corporate rate (9% vs 10%), which can influence business location decisions.

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

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