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Nicaragua vs Palau: tax rates compared

Nicaragua's income tax rate is 18pp higher than Palau's (30% vs 12%). The 200-country average is 28%: Nicaragua sits above it, Palau sits below it.

Verified data covers four of the six tracked tax types for both countries; every rate below is cited to its source and dated.

At a glance

0102030405060Income12%30%VAT10%15%Capital Gains0%15%Wealth Tax0%
four shared taxes, side by side
Tax NI PWDifference
Income Tax30%12%NI +18 pplargest gap
VAT15%10%NI +5 pp
Capital Gains Tax15%0%NI +15 pp
Wealth Tax0%0%match

Income Tax

Income Tax, side by side
CountryRateSource
Nicaragua30%Source: PWC Worldwide Tax Summaries — Nicaragua (Individual, Taxes on personal income) · as of 2026-01-12
Palau12%Source: Government of Palau — Bureau of Revenue and Taxation, Wages and Salary Tax · as of 2026-07-20
Difference+18 ppNicaragua higher

VAT

VAT, side by side
CountryRateSource
Nicaragua15%Source: PWC Worldwide Tax Summaries — Nicaragua (Corporate, Other taxes) · as of 2026-01-12
Palau10%Source: Palau Bureau of Revenue & Taxation — Palau Goods and Services Tax (PGST) · as of 2023-01-01
Difference+5 ppNicaragua higher

Nicaragua's VAT rate is 5pp higher than Palau's (15% vs 10%). The 181-country average is 15%: Nicaragua matches the world average, Palau sits below it. Nicaragua's figure is dated 2026-01-12 and Palau's 2023-01-01, so the two rates come from different data vintages.

Capital Gains Tax

Capital Gains Tax, side by side
CountryRateSource
Nicaragua15%Source: EY Worldwide Personal Tax and Immigration Guide 2025-26 — Nicaragua · as of 2025-10-01
Palau0%Source: Government of Palau — Ministry of Finance, Bureau of Revenue and Taxation · as of 2026-07-19
Difference+15 ppNicaragua higher

Nicaragua's capital gains tax rate is 15pp higher than Palau's (15% vs 0%). The 175-country average is 10.3%: Nicaragua sits above it, Palau sits below it. Nicaragua's figure is dated 2025-10-01 and Palau's 2026-07-19, so the two rates come from different data vintages.

Wealth Tax

Wealth Tax, side by side
CountryRateSource
Nicaragua0%Source: PWC Worldwide Tax Summaries — Nicaragua (Individual, Other taxes) · as of 2026-01-12
Palau0%Source: Palau National Code, Title 40 (Revenue and Taxation) — official text · as of 2026-07-18
Difference0 ppdisplayed rates match

Nicaragua's wealth tax rate is identical to Palau's — both sit at 0%. The 193-country average is 0.1%: both sit below it.

Not covered for both countries yet: Corporate Tax, Crypto Tax.