WorldTax Compareโ† All Comparisons

Paraguay vs Colombia
Tax Rate Comparison

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

๐Ÿ‡ต๐Ÿ‡พ Paraguay
vs
๐Ÿ‡จ๐Ÿ‡ด Colombia
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
8โ€“10%
10% top; competitive positioning
No change
0โ€“39%
Reform proposals; Petro administration final year
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
10%
10% IVA maintained
No change
0โ€“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
8โ€“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

๐Ÿ‡ต๐Ÿ‡พ Paraguay โ€” 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. Asunciรณn has the highest commercial licence fees. The Subsecretarรญa de Estado de Tributaciรณn (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.

๐Ÿ‡จ๐Ÿ‡ด Colombia โ€” Departmental & Municipal Taxes

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

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“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)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡จ๐Ÿ‡ด Colombia has a higher top income tax rate (8โ€“10% vs 0โ€“39%). ๐Ÿ‡ต๐Ÿ‡พ Paraguay is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Colombia has a higher consumption tax (10% vs 0โ€“19%).

๐Ÿข Corporate Tax: ๐Ÿ‡ต๐Ÿ‡พ Paraguay offers a lower corporate rate (10% vs 35%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ต๐Ÿ‡พ Paraguay taxes investment gains at a lower rate (10% vs 15%), benefiting investors.

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