PA · AmericasPY · Americas
Panama vs Paraguay: tax rates compared
Between the two, Panama's income tax rate (25%) tops Paraguay's (10%) by 15pp. The 200-country average is 28%: both sit below it.
Verified data covers five of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | PA | PY | Difference |
|---|---|---|---|
| Income Tax | 25% | 10% | PA +15 pplargest gap |
| Corporate Tax | 25% | 10% | PA +15 pp |
| VAT | 7% | 10% | PY +3 pp |
| Capital Gains Tax | 10% | 8% | PA +2 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Panama | 25% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Taxes on personal income) · as of 2026-01-18 |
| Paraguay | 10% | Source: PWC Worldwide Tax Summaries — Paraguay (Individual, Taxes on personal income) · as of 2026-02-07 |
| Difference | +15 pp | Panama higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Panama | 25% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Paraguay | 10% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | +15 pp | Panama higher |
Between the two, Panama's corporate tax rate (25%) tops Paraguay's (10%) by 15pp. The 201-country average is 22.6%: Panama sits above it, Paraguay sits below it.
VAT
| Country | Rate | Source |
|---|---|---|
| Panama | 7% | Source: PWC Worldwide Tax Summaries — Panama (Corporate, Other taxes) · as of 2026-01-18 |
| Paraguay | 10% | Source: PWC Worldwide Tax Summaries — Paraguay (Corporate, Other taxes) · as of 2026-02-07 |
| Difference | −3 pp | Paraguay higher |
Between the two, Paraguay's VAT rate (10%) tops Panama's (7%) by 3pp. The 181-country average is 15%: both sit below it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Panama | 10% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Other taxes) · as of 2026-01-18 |
| Paraguay | 8% | Source: PWC Worldwide Tax Summaries — Paraguay (Individual, Taxes on personal income) · as of 2026-02-07 |
| Difference | +2 pp | Panama higher |
Between the two, Panama's capital gains tax rate (10%) tops Paraguay's (8%) by 2pp. The 175-country average is 10.3%: both sit below it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Panama | 0% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Other taxes) · as of 2026-01-18 |
| Paraguay | 0% | Source: PWC Worldwide Tax Summaries — Paraguay (Net wealth/worth tax rates) · as of 2026-02-07 |
| Difference | 0 pp | displayed rates match |
There's no gap here — Panama and Paraguay both post a wealth tax rate of 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Crypto Tax.