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Paraguay vs Bahamas
Tax Rate Comparison

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

πŸ‡΅πŸ‡Ύ Paraguay
vs
πŸ‡§πŸ‡Έ Bahamas
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
8–10%
10% top; competitive positioning
No change
0%
No income tax maintained
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
10%
10% IVA maintained
No change
10%
10% VAT maintained
No change
Corporate Tax Rate
Corporate Tax Rate
10%
10%; Pillar Two for large MNCs operating in Paraguay
No change
0%
No CIT; Pillar Two compliance via domestic top-up
No change
Capital Gains Tax
Capital Gains Tax
8–10%
8%/10% maintained
No change
0%
No CGT
No change
Social Security & Payroll
Social Security / Payroll
~25.5%
IPS reform discussions; adequacy concerns
No change
~9.8%
NIB; hurricane recovery spending affecting fiscal position
No change
State, Regional & Local Taxes

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.

πŸ‡§πŸ‡Έ Bahamas β€” Local Government Rates & Fees

The Bahamas' islands have local government bodies collecting fees for services, building permits, and business licences. The Bahamas famously has no income tax, no capital gains tax, no corporate income tax, and no withholding tax β€” making it one of the world's purest zero-tax jurisdictions. Revenue comes through VAT (introduced 2015), real property tax, customs duties, and stamp duty. As a major offshore financial centre and tourism destination, the Bahamas has faced OECD/FATF pressure on transparency and has made significant reforms.

⚠️ 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 Bahamas: Key Tax Differences (2026)

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

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

🏒 Corporate Tax: πŸ‡§πŸ‡Έ Bahamas offers a lower corporate rate (0% vs 10%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡§πŸ‡Έ Bahamas taxes investment gains at a lower rate (0% vs 10%), benefiting investors.

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