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Brazil vs Luxembourg
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

πŸ‡§πŸ‡· Brazil
vs
πŸ‡±πŸ‡Ί Luxembourg
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0–27.5%
Zero-rate up to R$5,000/mo fully effective
No change
0–42%
Tax reform package continuing; thresholds indexed
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
~27.5% combined
IBS+CBS advancing; ICMS/ISS phasing out
β–Ό -0.5pp vs 2025
3–17%
Standard 17% maintained
No change
Corporate Tax Rate
Corporate Tax Rate
34%
34% maintained; reform discussions ongoing
No change
~24.94%
Global minimum tax fully embedded in domestic law
No change
Capital Gains Tax
Capital Gains Tax
15–22.5%
Offshore income now fully captured
No change
0–42%
No major reform
No change
Social Security & Payroll
Social Security / Payroll
~36%
Payroll simplification proposals ongoing
No change
~27%
Pension reform discussions; contribution structure stable
No change
State, Regional & Local Taxes

πŸ‡§πŸ‡· Brazil β€” State & Municipal Taxes

Brazil has one of the world's most complex tax systems. States levy ICMS at 7%–18% varying by state. Municipalities levy ISS (services tax) at 2%–5% and IPTU (urban property tax). A sweeping tax reform (EC 132/2023) is gradually replacing ICMS/ISS with unified IBS and CBS taxes through 2033. States impose ITCMD (inheritance/gift tax) up to 8%.

πŸ‡±πŸ‡Ί Luxembourg β€” Municipal Business & Property Taxes

Luxembourg's 102 communes levy the Gewerbesteuer (business tax) on companies at rates set by each commune (base rate 3% + municipal multiplier 175%–400% = effective 6–10.5%), and communal income tax additionals on individuals. Luxembourg City has higher rates than rural communes. The combined corporate tax (national + municipal) ranges from ~24.9% to ~26.01%. Luxembourg is a major holding company and fund domicile jurisdiction with extensive tax treaty networks.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Brazil vs Luxembourg: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡±πŸ‡Ί Luxembourg has a higher top income tax rate (0–27.5% vs 0–42%). πŸ‡§πŸ‡· Brazil is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Brazil has a higher consumption tax (~27.5% combined vs 3–17%).

🏒 Corporate Tax: πŸ‡±πŸ‡Ί Luxembourg offers a lower corporate rate (24.94% vs 34%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡§πŸ‡· Brazil taxes investment gains at a lower rate (22.5% vs 42%), benefiting investors.

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