WorldTax Compareโ† All Comparisons

Paraguay vs Andorra
Tax Rate Comparison

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

๐Ÿ‡ต๐Ÿ‡พ Paraguay
vs
๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

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

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
8โ€“10%
10% top; competitive positioning
No change
0โ€“10%
10% top; EU alignment reforms ongoing
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
10%
10% IVA maintained
No change
4.5%
4.5% IGI โ€” lowest in Europe
No change
Corporate Tax Rate
Corporate Tax Rate
10%
10%; Pillar Two for large MNCs operating in Paraguay
No change
10%
10% IS; EU Association Agreement compliance
No change
Capital Gains Tax
Capital Gains Tax
8โ€“10%
8%/10% maintained
No change
0%
No CGT โ€” key differentiator
No change
Social Security & Payroll
Social Security / Payroll
~25.5%
IPS reform discussions; adequacy concerns
No change
~21.5%
CASS stable; healthcare system well-funded
No change
State, Regional & Local Taxes

๐Ÿ‡ต๐Ÿ‡พ 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.

๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra โ€” Parish Taxes & Local Levies

Andorra's 7 parishes (parrรฒquies) levy communal taxes including building and land taxes, commercial licence fees, and local service charges. Andorra only introduced a personal income tax (IRPF) in 2015 and corporate tax (IS) in 2012. This micro-state in the Pyrenees between France and Spain remains a significant tax haven due to very low VAT and no inheritance or capital gains tax. It has an Association Agreement with the EU.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Paraguay vs Andorra: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: Paraguay and Andorra have similar top income tax rates (8โ€“10% vs 0โ€“10%).

๐Ÿ›’ VAT/Sales Tax: Paraguay has a higher consumption tax (10% vs 4.5%).

๐Ÿข Corporate Tax: Corporate rates are similar in both countries (10% vs 10%).

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra taxes investment gains at a lower rate (0% vs 10%), benefiting investors.

Related Comparisons

๐Ÿ‡ต๐Ÿ‡พ Paraguay vs ๐Ÿ‡ฆ๐Ÿ‡ท ArgentinaTax comparison๐Ÿ‡ต๐Ÿ‡พ Paraguay vs ๐Ÿ‡ง๐Ÿ‡ด BoliviaTax comparison๐Ÿ‡ต๐Ÿ‡พ Paraguay vs ๐Ÿ‡ง๐Ÿ‡ท BrazilTax comparison๐Ÿ‡ต๐Ÿ‡พ Paraguay vs ๐Ÿ‡จ๐Ÿ‡ฑ ChileTax comparison๐Ÿ‡ต๐Ÿ‡พ Paraguay vs ๐Ÿ‡จ๐Ÿ‡ด ColombiaTax comparison๐Ÿ‡ต๐Ÿ‡พ Paraguay vs ๐Ÿ‡ช๐Ÿ‡จ EcuadorTax comparison๐Ÿ‡ต๐Ÿ‡พ Paraguay vs ๐Ÿ‡ฒ๐Ÿ‡ฝ MexicoTax comparison๐Ÿ‡ต๐Ÿ‡พ Paraguay vs ๐Ÿ‡ต๐Ÿ‡ช PeruTax comparison๐Ÿ‡ต๐Ÿ‡พ Paraguay vs ๐Ÿ‡บ๐Ÿ‡พ UruguayTax comparison๐Ÿ‡ต๐Ÿ‡พ Paraguay vs ๐Ÿ‡จ๐Ÿ‡ณ ChinaTax comparison๐Ÿ‡ต๐Ÿ‡พ Paraguay vs ๐Ÿ‡บ๐Ÿ‡ธ United StatesTax comparison๐Ÿ‡ต๐Ÿ‡พ Paraguay vs ๐Ÿ‡ซ๐Ÿ‡ท FranceTax comparison