Paraguay vs Madagascar
Tax Rate Comparison
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Enter your income to see your estimated annual tax liability in each country — side by side.
🇵🇾 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.
🇲🇬 Madagascar — Region & Commune Taxes
Madagascar's 6 provinces, 22 regions, and 1,695 communes levy Taxe Foncière sur les Terrains (TFT), Taxe Foncière sur les Propriétés Bâties (TFPB), and Taxe Professionnelle (TP — business licence). The Direction Générale des Impôts (DGI) administers national taxes. Madagascar is highly dependent on vanilla (world's largest producer), cloves, seafood exports, and mining (ilmenite, cobalt via Ambatovy). It's among the world's poorest countries. Cyclones regularly disrupt the economy and infrastructure.
Paraguay vs Madagascar: Key Tax Differences (2026)
💰 Income Tax: 🇲🇬 Madagascar has a higher top income tax rate (8–10% vs 0–20%). 🇵🇾 Paraguay is more favourable for high earners.
🛒 VAT/Sales Tax: Madagascar has a higher consumption tax (10% vs 20%).
🏢 Corporate Tax: 🇵🇾 Paraguay offers a lower corporate rate (10% vs 20%), which can influence business location decisions.
📈 Capital Gains: 🇵🇾 Paraguay taxes investment gains at a lower rate (10% vs 20%), benefiting investors.