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Paraguay vs Colombia
Tax Rate Comparison

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

🇵🇾 Paraguay
vs
🇨🇴 Colombia
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
0–39%
Reform proposals; Petro administration final year
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
10%
10% IVA maintained
No change
0–19%
19% standard; no major change
No change

Corporate Tax Rate

Corporate Tax Rate
10%
10%; Pillar Two for large MNCs operating in Paraguay
No change
35%
35% stable; competitiveness concerns vs. regional peers
No change

Capital Gains Tax

Capital Gains Tax
8–10%
8%/10% maintained
No change
15%
15% flat; potential reform for real estate gains
No change

Social Security & Payroll

Social Security / Payroll
~25.5%
IPS reform discussions; adequacy concerns
No change
~30%
Pension reform fully phasing in; new contribution structure
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.

🇨🇴 Colombia — Departmental & Municipal Taxes

Colombia's 32 departments and 1,102 municipalities levy Industria y Comercio (ICA) — a gross receipts tax on business activity at 0.2%–1.4% of revenues. Municipalities set property tax (predial) rates within national ranges. The SIMPLE tax regime integrates various taxes for small businesses. Bogotá and Medellín have higher ICA rates than smaller cities. Departments levy taxes on alcohol, tobacco, and vehicle registration.

⚠️ 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 Colombia: Key Tax Differences (2026)

💰 Income Tax: 🇨🇴 Colombia has a higher top income tax rate (8–10% vs 0–39%). 🇵🇾 Paraguay is more favourable for high earners.

🛒 VAT/Sales Tax: Colombia has a higher consumption tax (10% vs 0–19%).

🏢 Corporate Tax: 🇵🇾 Paraguay offers a lower corporate rate (10% vs 35%), which can influence business location decisions.

📈 Capital Gains: 🇵🇾 Paraguay taxes investment gains at a lower rate (10% vs 15%), benefiting investors.

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