Luxembourg
Western Europe · LU · 88 treaties
What are the main tax rates in Luxembourg?
Luxembourg has a top personal income tax rate of 42%, a corporate tax rate of 17%, and 0% capital gains tax. The standard VAT rate is 17%.
Tax profile
| Corporate income tax | 17% |
| Withholding — dividends | 15% |
| Withholding — interest | 0% |
| Withholding — royalties | 0% |
| VAT / GST (standard) | 17% |
| Personal income (top rate) | 42% |
| Capital gains | 0% |
| Tax system | Worldwide |
| Residency threshold | 183 days |
| Exit / departure tax | Yes |
| CFC rules | Yes |
| Transfer pricing | Oecd Aligned |
| Digital nomad visa | No |
| Digital services tax | none |
| Global minimum tax (Pillar 2) | Implemented |
Common questions
- What is the top personal income tax rate in Luxembourg?
- The top personal income tax rate in Luxembourg is 42%.
- What is the corporate tax rate in Luxembourg?
- The corporate tax rate in Luxembourg is 17%.
- Is there capital gains tax in Luxembourg?
- Luxembourg has a 0% capital gains tax rate.
Tax residency
Easy to leaveWhat makes you a tax resident — and how hard it is to stop being one.
- having tax domicile in Luxembourg (maintains a home in circumstances indicating they will keep and use it)
- having normal/usual place of residence in Luxembourg (actually lives there in non-temporary circumstances)
- stay in Luxembourg exceeding 6 consecutive months, counted retroactively from arrival (even if spanning 2 tax years or interrupted by short absences)
Luxembourg tax residency is based on domicile or a normal place of residence, but official and professional guidance indicate there are no special exit procedures and residency generally ceases once the person deregisters and no longer has a home or normal/6‑month presence in Luxembourg.
Source: Administration des contributions directes (Luxembourg Inland Revenue) via OECD
Tax treaty network (88)
In-force double-tax treaty partners. Treaty-reduced withholding (dividends / interest / royalties) shown where the official source publishes a rate; otherwise the country's statutory rate applies unless the treaty text provides a reduction.
| Partner | Div | Int | Roy |
|---|---|---|---|
| Albania | 10% | 5% | 0% |
| Andorra | 15% | 5% | 0% |
| Armenia | 15% | 5% | 0% |
| Austria | 15% | 5% | 0% |
| Azerbaijan | 10% | 5% | 0% |
| Bahrain | 10% | 0% | 0% |
| Barbados | 15% | 0% | 0% |
| Belgium | 15% | 10% | 0% |
| Botswana | 10% | 5% | 0% |
| Brazil | 15% | 0% | 0% |
| Brunei | 10% | 0% | 0% |
| Bulgaria | 15% | 5% | 0% |
| Canada | 15% | 5% | 0% |
| China | 10% | 5% | 0% |
| Croatia | 15% | 5% | 0% |
| Cyprus | 5% | 0% | 0% |
| Czechia | 10% | 0% | 0% |
| Denmark | 15% | 5% | 0% |
| Estonia | 10% | 0% | 0% |
| Ethiopia | 10% | 5% | 0% |
| Finland | 15% | 5% | 0% |
| France | 15% | 0% | 0% |
| Georgia | 10% | 5% | 0% |
| Germany | 15% | 5% | 0% |
| Greece | 7.5% | 0% | 0% |
| Guernsey | 15% | 5% | 0% |
| Hong Kong S.A.R. | 10% | 0% | 0% |
| Hungary | 10% | 0% | 0% |
| Iceland | 15% | 5% | 0% |
| India | 10% | 0% | 0% |
| Indonesia | 15% | 10% | 0% |
| Ireland | 15% | 5% | 0% |
| Isle of Man | 15% | 5% | 0% |
| Israel | 15% | 5% | 0% |
| Italy | 15% | 0% | 0% |
| Japan | 15% | 5% | 0% |
| Jersey | 15% | 5% | 0% |
| Kazakhstan | 15% | 5% | 0% |
| South Korea | 15% | 10% | 0% |
| Kosovo | 10% | 0% | 0% |
| Laos | 15% | 5% | 0% |
| Latvia | 10% | 5% | 0% |
| Liechtenstein | 15% | 5% | 0% |
| Lithuania | 15% | 5% | 0% |
| North Macedonia | 15% | 5% | 0% |
| Malaysia | 10% | 5% | 0% |
| Malta | 15% | 5% | 0% |
| Mauritius | 10% | 5% | 0% |
| Mexico | 15% | 5% | 0% |
| Moldova | 10% | 5% | 0% |
| Monaco | 15% | 5% | 0% |
| Montenegro | 10% | 5% | 0% |
| Morocco | 15% | 10% | 0% |
| Netherlands | 15% | 2.5% | 0% |
| Norway | 15% | 5% | 0% |
| Panama | 15% | 5% | 0% |
| Poland | 15% | 0% | 0% |
| Portugal | 15% | 0% | 0% |
| Qatar | 10% | 5% | 0% |
| Romania | 15% | 5% | 0% |
| Russia | 15% | 5% | 0% |
| Rwanda | 10% | 10% | 0% |
| San Marino | 15% | 0% | 0% |
| Saudi Arabia | 5% | 0% | 0% |
| Senegal | 15% | 5% | 0% |
| Republic of Serbia | 10% | 5% | 0% |
| Seychelles | 10% | 0% | 0% |
| Singapore | 0% | 0% | 0% |
| Slovakia | 15% | 5% | 0% |
| Slovenia | 15% | 5% | 0% |
| South Africa | 15% | 5% | 0% |
| Spain | 15% | 5% | 0% |
| Sri Lanka | 10% | 7.5% | 0% |
| Sweden | 15% | 0% | 0% |
| Switzerland | 15% | 5% | 0% |
| Taiwan | 15% | 0% | 0% |
| Tajikistan | 15% | 0% | 0% |
| Thailand | 15% | 5% | 0% |
| Trinidad and Tobago | 10% | 5% | 0% |
| Tunisia | 10% | 0% | 0% |
| Turkey | 15% | 5% | 0% |
| Ukraine | 15% | 5% | 0% |
| United Arab Emirates | 10% | 5% | 0% |
| United Kingdom | 15% | 0% | 0% |
| United States of America | 15% | 5% | 0% |
| Uruguay | 15% | 5% | 0% |
| Uzbekistan | 15% | 5% | 0% |
| Vietnam | 15% | 10% | 0% |