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Paraguay vs Bolivia
Tax Rate Comparison

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

🇵🇾 Paraguay
vs
🇧🇴 Bolivia
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
13%
RC-IVA 13% maintained
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
10%
10% IVA maintained
No change
13%
13% IVA; possible reform discussions
No change

Corporate Tax Rate

Corporate Tax Rate
10%
10%; Pillar Two for large MNCs operating in Paraguay
No change
25%
25% IUE; natural gas revenue declining
No change

Capital Gains Tax

Capital Gains Tax
8–10%
8%/10% maintained
No change
25%
25% via IUE
No change

Social Security & Payroll

Social Security / Payroll
~25.5%
IPS reform discussions; adequacy concerns
No change
~21.5%
AFP system; pension adequacy concerns
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.

🇧🇴 BoliviaDepartmental & Municipal Taxes

Bolivia's 9 departments and 339 municipalities have their own tax powers. Municipalities levy the Impuesto a la Propiedad de Bienes Inmuebles (IPBI) on real property and the Impuesto Municipal a las Transferencias (IMT) on property transfers. Departmental governments receive shares of natural resource royalties. The National Tax Service (SIN) administers national taxes. Bolivia has a unique tax system where there is no personal income tax in the traditional sense — instead, the RC-IVA (complementary VAT) effectively taxes income.

⚠️ 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 Bolivia: Key Tax Differences (2026)

💰 Income Tax: 🇧🇴 Bolivia has a higher top income tax rate (8–10% vs 13%). 🇵🇾 Paraguay is more favourable for high earners.

🛒 VAT/Sales Tax: Bolivia has a higher consumption tax (10% vs 13%).

🏢 Corporate Tax: 🇵🇾 Paraguay offers a lower corporate rate (10% vs 25%), which can influence business location decisions.

📈 Capital Gains: 🇵🇾 Paraguay taxes investment gains at a lower rate (10% vs 25%), benefiting investors.

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All 🇵🇾 Paraguay comparisons →All 🇧🇴 Bolivia comparisons →