With its rich cultural heritage, low cost of living, and awe-inspiring landscapes—from the Andes Mountains to the Amazon Basin—Bolivia is an underrated gem for those looking to start a new life abroad.
In this guide, we’ll walk you through everything you need to know about relocating to Bolivia from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
Bolivia follows a territorial taxation model. You will pay tax on local sourced incomes only, irrespective of your resident status.
Tax on property and share sales
Tax on value of owned assets
Tax on assets passed to heirs
Tax to contribute to state welfare
If you receive incomes overseas while you are living in the Bolivia, you may find that the source country, as a starting point, continues to tax the income.
Double taxation agreements may remove the source country’s taxing right and thus, enable you to receive incomes tax free globally.
At present, Bolivia has nine double taxation agreements signed.
