WorldTax CompareAll Comparisons

South Korea vs Nicaragua
Tax Rate Comparison

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

🇰🇷 South Korea
vs
🇳🇮 Nicaragua
Tax Year:

💰 Personal Income Tax Calculator

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
6–45%
Stable; political debate on top rate reduction
No change
0–30%
30% top; economic stability fragile
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
10%
Standard 10% maintained
No change
15%
IVA 15% maintained
No change

Corporate Tax Rate

Corporate Tax Rate
9–24%
Competitiveness discussions vs global peers
No change
30%
30% IR maintained
No change

Capital Gains Tax

Capital Gains Tax
0–45%
Financial income taxation reform continuing
No change
15%
15% CGT
No change

Social Security & Payroll

Social Security / Payroll
~18.5%
Contribution rates stable; pension reform discussion
No change
~25.25%
INSS reform pending
No change
State, Regional & Local Taxes

🇰🇷 South KoreaLocal Income Tax & Resident Tax

South Korea's 17 metropolitan/provincial governments levy local income tax at 10% of national income tax. Property holding tax (Jongbu-se) is a national progressive tax on higher-value properties. Local education taxes and acquisition taxes apply to property transfers. Seoul has higher effective rates due to property values.

🇳🇮 NicaraguaMunicipal Taxes

Nicaragua's 153 municipalities levy the Impuesto de Matrícula (2% of prior revenues), Impuesto Municipal sobre Ingresos (IMI at 1% of monthly revenues), property tax (IBI at 1%), and service fees. Nicaragua under Ortega government has faced significant economic disruption from 2018 protests and subsequent international isolation. The economy has stabilized somewhat but remains one of the poorest in Central America. Tax administration reform has been ongoing with support from international institutions.

⚠️ 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.

South Korea vs Nicaragua: Key Tax Differences (2026)

💰 Income Tax: 🇰🇷 South Korea has a higher top income tax rate (6–45% vs 0–30%). 🇳🇮 Nicaragua is more favourable for high earners.

🛒 VAT/Sales Tax: Nicaragua has a higher consumption tax (10% vs 15%).

🏢 Corporate Tax: 🇰🇷 South Korea offers a lower corporate rate (24% vs 30%), which can influence business location decisions.

📈 Capital Gains: 🇳🇮 Nicaragua taxes investment gains at a lower rate (15% vs 45%), benefiting investors.

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