WorldTax Compare← All Comparisons

Colombia vs Paraguay
Tax Rate Comparison

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

πŸ‡¨πŸ‡΄ Colombia
vs
πŸ‡΅πŸ‡Ύ Paraguay
Tax Year:

πŸ’° Personal Income Tax Calculator

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

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0–39%
Reform proposals; Petro administration final year
No change
8–10%
10% top; competitive positioning
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
0–19%
19% standard; no major change
No change
10%
10% IVA maintained
No change
Corporate Tax Rate
Corporate Tax Rate
35%
35% stable; competitiveness concerns vs. regional peers
No change
10%
10%; Pillar Two for large MNCs operating in Paraguay
No change
Capital Gains Tax
Capital Gains Tax
15%
15% flat; potential reform for real estate gains
No change
8–10%
8%/10% maintained
No change
Social Security & Payroll
Social Security / Payroll
~30%
Pension reform fully phasing in; new contribution structure
No change
~25.5%
IPS reform discussions; adequacy concerns
No change
State, Regional & Local Taxes

πŸ‡¨πŸ‡΄ Colombia β€” Departmental & Municipal Taxes

Colombia's 32 departments and 1,102 municipalities levy Industria y Comercio (ICA) β€” 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. BogotΓ‘ and MedellΓ­n have higher ICA rates than smaller cities. Departments levy taxes on alcohol, tobacco, and vehicle registration.

πŸ‡΅πŸ‡Ύ Paraguay β€” 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. AsunciΓ³n has the highest commercial licence fees. The SubsecretarΓ­a de Estado de TributaciΓ³n (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.

⚠️ 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.

Colombia vs Paraguay: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡¨πŸ‡΄ Colombia has a higher top income tax rate (0–39% vs 8–10%). πŸ‡΅πŸ‡Ύ Paraguay is more favourable for high earners.

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

🏒 Corporate Tax: πŸ‡΅πŸ‡Ύ Paraguay offers a lower corporate rate (10% vs 35%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡΅πŸ‡Ύ Paraguay taxes investment gains at a lower rate (10% vs 15%), benefiting investors.

Related Comparisons

πŸ‡¨πŸ‡΄ Colombia vs πŸ‡¦πŸ‡· ArgentinaTax comparisonπŸ‡¨πŸ‡΄ Colombia vs πŸ‡§πŸ‡΄ BoliviaTax comparisonπŸ‡¨πŸ‡΄ Colombia vs πŸ‡§πŸ‡· BrazilTax comparisonπŸ‡¨πŸ‡΄ Colombia vs πŸ‡¨πŸ‡± ChileTax comparisonπŸ‡¨πŸ‡΄ Colombia vs πŸ‡ͺπŸ‡¨ EcuadorTax comparisonπŸ‡¨πŸ‡΄ Colombia vs πŸ‡²πŸ‡½ MexicoTax comparisonπŸ‡¨πŸ‡΄ Colombia vs πŸ‡΅πŸ‡ͺ PeruTax comparisonπŸ‡¨πŸ‡΄ Colombia vs πŸ‡ΊπŸ‡Έ United StatesTax comparisonπŸ‡¨πŸ‡΄ Colombia vs πŸ‡ΊπŸ‡Ύ UruguayTax comparisonπŸ‡¨πŸ‡΄ Colombia vs πŸ‡¨πŸ‡³ ChinaTax comparisonπŸ‡¨πŸ‡΄ Colombia vs πŸ‡«πŸ‡· FranceTax comparisonπŸ‡¨πŸ‡΄ Colombia vs πŸ‡©πŸ‡ͺ GermanyTax comparison