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Paraguay vs Liberia
Tax Rate Comparison

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

🇵🇾 Paraguay
vs
🇱🇷 Liberia
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
0–25%
25% top; fiscal reform priority
No change

VAT / GST / Sales Tax

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

Corporate Tax Rate

Corporate Tax Rate
10%
10%; Pillar Two for large MNCs operating in Paraguay
No change
25%
25%; natural resource revenue reform
No change

Capital Gains Tax

Capital Gains Tax
8–10%
8%/10% maintained
No change
15%
15% CGT
No change

Social Security & Payroll

Social Security / Payroll
~25.5%
IPS reform discussions; adequacy concerns
No change
~9%
NASSCORP reform; pension development
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.

🇱🇷 LiberiaCounty & District Taxes

Liberia's 15 counties and districts collect local taxes including property tax (1%–3% of market value), business licence fees, and local service charges. The Liberia Revenue Authority (LRA) administers national taxes. Liberia uses the US dollar alongside the Liberian dollar. The country was devastated by civil wars (1989–2003) and the 2014–16 Ebola epidemic. Iron ore (ArcelorMittal, China Union), rubber, palm oil, and timber are key exports. Tax reform has been a focus of post-conflict reconstruction under successive administrations.

⚠️ 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 Liberia: Key Tax Differences (2026)

💰 Income Tax: 🇱🇷 Liberia has a higher top income tax rate (8–10% vs 0–25%). 🇵🇾 Paraguay is more favourable for high earners.

🛒 VAT/Sales Tax: Both countries have comparable consumption tax rates (10% vs 10%).

🏢 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 15%), benefiting investors.

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