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Bolivia: Taxes and Costs

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Taxes are moderate in Bolivia

INDIVIDUAL TAXATION

Non-residents are taxed on their Bolivian-sourced income. Married couples are taxed separately.

INCOME TAX

Income earned by non-residents is taxed at the corporate tax rate of 25%. The taxable income is gross income less expenses and other deductions. For self-employed professionals, their net income is deemed to be 50% of their gross income; therefore, the effective tax rate for them is 12.5% (25% tax on 50% of gross income).

RENTAL INCOME
Rental income earned by non-residents is taxed at 25%. Net rental income is presumed to be 50% of the gross income; therefore the effective income tax rate is 12.5% on the gross rental income (25% tax on 50% of the gross income). This is the final tax liability of non-residents, withheld by the tenant.

CAPITAL GAINS
Capital gains earned by non-residents through selling a Bolivian property are taxed at 25%. Net capital gain is presumed to be 50% of the gross gains; therefore the effective income tax rate is 12.5% on the gross rental income (25% tax on 50% of the gross income).

VALUE ADDED TAX (VAT)

The VAT is levied on the leasing of Bolivian real estate at the standard VAT rate of 13%. The taxable income is the net rental income, deemed to be 50% of the gross rent.

PROPERTY TAX

Property Tax (Impuesto a la propiedad de bienes inmuebles)

The property tax is levied on the assessed cadastral value of the property, as determined by the local tax authorities. The tax rates are progressive, depending on the property value.

CORPORATE TAXATION

INCOME TAX

Corporate income tax is levied on income and capital gains earned by companies at 25%. Expenses incurred in generating and necessary in maintaining such profits are deductible.

Bolivia - more data and information

• How high are estate duties in Bolivia?

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