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Paraguay vs Switzerland
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‡­ Switzerland
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
0–11.5%
Stable; cantonal competition ongoing
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
10%
10% IVA maintained
No change
2.6–8.1%
No further increases planned
No change
Corporate Tax Rate
Corporate Tax Rate
10%
10%; Pillar Two for large MNCs operating in Paraguay
No change
~14–26%
Pillar Two supplementary tax active; cantons adjusting
No change
Capital Gains Tax
Capital Gains Tax
8–10%
8%/10% maintained
No change
0%
No capital gains tax for private individuals
No change
Social Security & Payroll
Social Security / Payroll
~25.5%
IPS reform discussions; adequacy concerns
No change
~10.9%
BVG/LPP reform (expanded occupational pension) active
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‡­ Switzerland β€” Cantonal & Communal Taxes

Switzerland's 26 cantons and ~2,200 communes independently set income and corporate tax rates. Zug (~12% combined top) and Nidwalden are among the lowest globally; Geneva and Vaud reach ~45% combined. Wealth tax is levied by cantons. Pillar Two supplementary tax is active for large MNCs. Inheritance and gift taxes are cantonal.

⚠️ 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 Switzerland: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡¨πŸ‡­ Switzerland has a higher top income tax rate (8–10% vs 0–11.5%). πŸ‡΅πŸ‡Ύ Paraguay is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Paraguay has a higher consumption tax (10% vs 2.6–8.1%).

🏒 Corporate Tax: πŸ‡΅πŸ‡Ύ Paraguay offers a lower corporate rate (10% vs 26%), which can influence business location decisions.

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

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