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Paraguay vs Netherlands
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‡³πŸ‡± Netherlands
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
9.32–49.5%
Box 3 reform: actual returns taxed (not deemed)
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
10%
10% IVA maintained
No change
9–21%
Reduced 9% rate under review
No change
Corporate Tax Rate
Corporate Tax Rate
10%
10%; Pillar Two for large MNCs operating in Paraguay
No change
19–25.8%
Stable; Pillar Two global minimum tax applies
No change
Capital Gains Tax
Capital Gains Tax
8–10%
8%/10% maintained
No change
~38%
Box 3 new regime: actual return basis
No change
Social Security & Payroll
Social Security / Payroll
~25.5%
IPS reform discussions; adequacy concerns
No change
~28%
AOW/WW/WIA contributions ceiling raised
β–² +0.4pp vs 2025
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‡³πŸ‡± Netherlands β€” Municipal & Water Board Taxes

The Netherlands is a unitary state β€” income tax is set nationally. Municipalities levy property taxes (OZB) and water boards (waterschappen) charge annual water management levies. The Box 3 system is under ongoing reform following Supreme Court rulings. New Box 3 reform taxes actual returns from 2027.

⚠️ 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 Netherlands: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡³πŸ‡± Netherlands has a higher top income tax rate (8–10% vs 9.32–49.5%). πŸ‡΅πŸ‡Ύ Paraguay is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Netherlands has a higher consumption tax (10% vs 9–21%).

🏒 Corporate Tax: πŸ‡΅πŸ‡Ύ Paraguay offers a lower corporate rate (10% vs 25.8%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡΅πŸ‡Ύ Paraguay taxes investment gains at a lower rate (10% vs 38%), benefiting investors.

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