Paraguay vs Germany
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ต๐พ 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.
๐ฉ๐ช Germany โ Trade Tax (Gewerbesteuer) & Church Tax
Germany's 16 Bundeslรคnder apply federal income tax rates uniformly โ no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7โ17% effective. Church tax (Kirchensteuer) of 8โ9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.
Paraguay vs Germany: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฉ๐ช Germany has a higher top income tax rate (8โ10% vs 14โ45%). ๐ต๐พ Paraguay is more favourable for high earners.
๐ VAT/Sales Tax: Germany has a higher consumption tax (10% vs 7โ19%).
๐ข Corporate Tax: ๐ต๐พ Paraguay offers a lower corporate rate (10% vs 29%), which can influence business location decisions.
๐ Capital Gains: ๐ต๐พ Paraguay taxes investment gains at a lower rate (10% vs 25%), benefiting investors.