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Ecuador vs Paraguay
Tax Rate Comparison

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

πŸ‡ͺπŸ‡¨ Ecuador
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
0–37%
37% top; fiscal consolidation continuing
No change
8–10%
10% top; competitive positioning
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
15%
15% VAT maintained for fiscal reasons
No change
10%
10% IVA maintained
No change
Corporate Tax Rate
Corporate Tax Rate
25%
25%; oil sector dominant; Pillar Two considerations
No change
10%
10%; Pillar Two for large MNCs operating in Paraguay
No change
Capital Gains Tax
Capital Gains Tax
10%
10% on gains
No change
8–10%
8%/10% maintained
No change
Social Security & Payroll
Social Security / Payroll
~32.09%
IESS; actuarial deficit concerns
No change
~25.5%
IPS reform discussions; adequacy concerns
No change
State, Regional & Local Taxes

πŸ‡ͺπŸ‡¨ Ecuador β€” Municipal & Provincial Taxes

Ecuador's 24 provinces and 221 cantons (municipalities) levy the impuesto predial (property tax at 0.025%–0.5%), impuesto de patente (business licence), and municipal assets tax. Guayaquil and Quito have the highest municipal commercial charges. The Internal Revenue Service (SRI) administers national taxes. Ecuador uses the US dollar as official currency since 2000, providing monetary stability. Tax reform has been ongoing under successive administrations facing fiscal pressures from oil price volatility.

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.

Ecuador vs Paraguay: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡ͺπŸ‡¨ Ecuador has a higher top income tax rate (0–37% vs 8–10%). πŸ‡΅πŸ‡Ύ Paraguay is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Ecuador has a higher consumption tax (15% vs 10%).

🏒 Corporate Tax: πŸ‡΅πŸ‡Ύ Paraguay offers a lower corporate rate (10% vs 25%), which can influence business location decisions.

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