Peru vs Paraguay
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇵🇪 Peru — Municipal Taxes & Regional Licenses
Peru's 25 regions and 1,874 municipalities have limited tax powers. Municipalities levy Impuesto Predial (property tax at 0.2%–1% of self-assessed value), vehicle tax (Impuesto al Patrimonio Vehicular), and business licences. Alcabala (property transfer tax) is municipal at 3% of value above 10 UIT. The national tax authority (SUNAT) administers income and VAT taxes. Peru has a flat corporate rate and progressive personal income tax system.
🇵🇾 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.
Peru vs Paraguay: Key Tax Differences (2026)
💰 Income Tax: 🇵🇪 Peru has a higher top income tax rate (8–30% vs 8–10%). 🇵🇾 Paraguay is more favourable for high earners.
🛒 VAT/Sales Tax: Peru has a higher consumption tax (18% vs 10%).
🏢 Corporate Tax: 🇵🇾 Paraguay offers a lower corporate rate (10% vs 29.5%), which can influence business location decisions.
📈 Capital Gains: 🇵🇪 Peru taxes investment gains at a lower rate (5% vs 10%), benefiting investors.