Venezuela vs Nicaragua
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ป๐ช Venezuela โ Municipal & State Taxes
Venezuela's 23 states and Caracas Capital District have constitutionally defined taxing powers. States levy taxes on minerals, hydrocarbons (petrรณleo royalties), and salinas. Municipalities levy the Impuesto sobre Actividades Econรณmicas (IAE) โ a gross receipts tax โ at 0.5%โ10% on businesses, varying dramatically by municipality. The SENIAT (tax authority) administers national taxes. Hyperinflation (2017โ2021) destroyed the bolรญvar and most formal taxation. Dollarization and new strong bolรญvar (VES) partially stabilized the system. Significant informal economy.
๐ณ๐ฎ Nicaragua โ Municipal Taxes
Nicaragua's 153 municipalities levy the Impuesto de Matrรญcula (2% of prior revenues), Impuesto Municipal sobre Ingresos (IMI at 1% of monthly revenues), property tax (IBI at 1%), and service fees. Nicaragua under Ortega government has faced significant economic disruption from 2018 protests and subsequent international isolation. The economy has stabilized somewhat but remains one of the poorest in Central America. Tax administration reform has been ongoing with support from international institutions.
Venezuela vs Nicaragua: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ป๐ช Venezuela has a higher top income tax rate (6โ34% vs 0โ30%). ๐ณ๐ฎ Nicaragua is more favourable for high earners.
๐ VAT/Sales Tax: Venezuela has a higher consumption tax (16% vs 15%).
๐ข Corporate Tax: ๐ณ๐ฎ Nicaragua offers a lower corporate rate (30% vs 34%), which can influence business location decisions.
๐ Capital Gains: ๐ณ๐ฎ Nicaragua taxes investment gains at a lower rate (15% vs 34%), benefiting investors.