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Paraguay vs Chile
Tax Rate Comparison

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

🇵🇾 Paraguay
vs
🇨🇱 Chile
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
8–10%
10% top; competitive positioning
No change
0–40%
Rates stable; Boric administration reforms settling
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
10%
10% IVA maintained
No change
19%
19% flat; no change
No change

Corporate Tax Rate

Corporate Tax Rate
10%
10%; Pillar Two for large MNCs operating in Paraguay
No change
27%
Large corp 27% stable; Pillar Two for MNCs
No change

Capital Gains Tax

Capital Gains Tax
8–10%
8%/10% maintained
No change
0–22%
No major reform expected
No change

Social Security & Payroll

Social Security / Payroll
~25.5%
IPS reform discussions; adequacy concerns
No change
~35%
Pension reform adding 6% employer contribution gradually
No change
State, Regional & Local Taxes

🇵🇾 Paraguay — 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. Asunción has the highest commercial licence fees. The Subsecretaría de Estado de Tributación (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.

🇨🇱 Chile — Municipal & Regional Taxes

Chile's 16 regions and 346 municipalities do not levy separate income taxes. Municipalities charge patente municipal (business licence fee) based on capital, typically 0.25%–0.5% of net equity/year, capped at ~$8,000 USD. Property tax (contribuciones de bienes raíces) is national in structure but rates vary 0.075%–1.2% by property type. The SII (tax authority) is national. The Royalty Minero (mining royalty) is a significant revenue source in copper-producing regions.

⚠️ 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 Chile: Key Tax Differences (2026)

💰 Income Tax: 🇨🇱 Chile has a higher top income tax rate (8–10% vs 0–40%). 🇵🇾 Paraguay is more favourable for high earners.

🛒 VAT/Sales Tax: Chile has a higher consumption tax (10% vs 19%).

🏢 Corporate Tax: 🇵🇾 Paraguay offers a lower corporate rate (10% vs 27%), which can influence business location decisions.

📈 Capital Gains: 🇵🇾 Paraguay taxes investment gains at a lower rate (10% vs 22%), benefiting investors.

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