🇱🇺 Luxembourg
LU / LUX #167
Nomad Score
59.0
Cities
9
Currency
EUR
🇱🇺 LUXEMBOURG TAX PROFILE
Data year: 2025
Tax System
Worldwide
Solidarity surcharge 7-9% on PIT. Class system: 1 (single), 1a (single parent), 2 (married).
Solidarity surcharge 7-9% on PIT. Class system: 1 (single), 1a (single parent), 2 (married).
Top PIT Rate
42.0%
(eff. 45.8%)
Corporate Tax Rate
17.0%
TVA
17.0%
Capital Gains Tax
21.0%
Half of gains taxed at progressive rates. Shares held >6 months and <10% participation may be exempt.
Half of gains taxed at progressive rates. Shares held >6 months and <10% participation may be exempt.
Social Security (Employee)
12.5%
Social Security (Employer)
12.5%
SS Cap (Annual)
EUR 162,224
Dividend Withholding
15.0%
Interest Withholding
0.0%
Royalty Withholding
0.0%
Wealth Tax
0.50%
Inheritance Tax
48.0%
Treaty Count
85
Participation Exemption
📊 INCOME TAX BRACKETS
Personal income
| Bracket Min | Bracket Max | Rate % | USD Equivalent |
|---|---|---|---|
| EUR 0 | EUR 11,265 | 0.0% | -- |
| EUR 11,265 | EUR 13,137 | 8.0% | -- |
| EUR 13,137 | EUR 15,009 | 9.0% | -- |
| EUR 15,009 | EUR 16,881 | 10.0% | -- |
| EUR 16,881 | EUR 18,753 | 11.0% | -- |
| EUR 18,753 | EUR 20,625 | 12.0% | -- |
| EUR 20,625 | EUR 22,569 | 14.0% | -- |
| EUR 22,569 | EUR 24,513 | 16.0% | -- |
| EUR 24,513 | EUR 26,457 | 18.0% | -- |
| EUR 26,457 | EUR 28,401 | 20.0% | -- |
| EUR 28,401 | EUR 30,345 | 22.0% | -- |
| EUR 30,345 | EUR 32,289 | 24.0% | -- |
| EUR 32,289 | EUR 34,233 | 26.0% | -- |
| EUR 34,233 | EUR 36,177 | 28.0% | -- |
| EUR 36,177 | EUR 38,121 | 30.0% | -- |
| EUR 38,121 | EUR 40,065 | 32.0% | -- |
| EUR 40,065 | EUR 42,009 | 34.0% | -- |
| EUR 42,009 | EUR 43,953 | 36.0% | -- |
| EUR 43,953 | EUR 45,897 | 38.0% | -- |
| EUR 45,897 | EUR 100,000 | 39.0% | -- |
| EUR 100,000 | EUR 150,000 | 40.0% | -- |
| EUR 150,000 | EUR 200,004 | 41.0% | -- |
| EUR 200,004 | and above | 42.0% | -- |
🏠 TAX RESIDENCY
Days Threshold
183 days
Residency Rules
Resident if domiciled or habitual abode in Luxembourg
Exit Tax
No
CFC Rules
Yes
CFC rules under ATAD implementation
CFC rules under ATAD implementation
📅 FILING INFORMATION
Fiscal Year
01-01 – 12-31
Filing Deadline
March 31
📚 SOURCES
-
PwC Luxembourg Tax Summary
(accessed Mar 23, 2026)
PIT, CIT, TVA, social security
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