Luxembourg vs Andorra
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇱🇺 Luxembourg — 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.
🇦🇩 Andorra — Parish Taxes & Local Levies
Andorra's 7 parishes (parròquies) levy communal taxes including building and land taxes, commercial licence fees, and local service charges. Andorra only introduced a personal income tax (IRPF) in 2015 and corporate tax (IS) in 2012. This micro-state in the Pyrenees between France and Spain remains a significant tax haven due to very low VAT and no inheritance or capital gains tax. It has an Association Agreement with the EU.
Luxembourg vs Andorra: Key Tax Differences (2026)
💰 Income Tax: 🇱🇺 Luxembourg has a higher top income tax rate (0–42% vs 0–10%). 🇦🇩 Andorra is more favourable for high earners.
🛒 VAT/Sales Tax: Luxembourg has a higher consumption tax (3–17% vs 4.5%).
🏢 Corporate Tax: 🇦🇩 Andorra offers a lower corporate rate (10% vs 24.94%), which can influence business location decisions.
📈 Capital Gains: 🇦🇩 Andorra taxes investment gains at a lower rate (0% vs 42%), benefiting investors.