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Luxembourg vs Bhutan
Tax Rate Comparison

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

🇱🇺 Luxembourg
vs
🇧🇹 Bhutan
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–42%
Tax reform package continuing; thresholds indexed
No change
0–25%
25% top; crypto mining revenues adding to national income
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
3–17%
Standard 17% maintained
No change
0%
No VAT; GST consideration ongoing
No change

Corporate Tax Rate

Corporate Tax Rate
~24.94%
Global minimum tax fully embedded in domestic law
No change
30%
30% CIT; digital economy and hydropower growing
No change

Capital Gains Tax

Capital Gains Tax
0–42%
No major reform
No change
0%
No CGT
No change

Social Security & Payroll

Social Security / Payroll
~27%
Pension reform discussions; contribution structure stable
No change
~10%
NPPF; pension adequacy improving
No change
State, Regional & Local Taxes

🇱🇺 LuxembourgMunicipal 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.

🇧🇹 BhutanDzongkhag & Thromde Taxes

Bhutan's 20 dzongkhags (districts) and thromdes (municipalities) levy local land tax, cattle tax, and local fees. Bhutan is a constitutional monarchy pursuing Gross National Happiness over GDP. Corporate and business income taxes are primary revenue sources; personal income tax is minimal for most citizens given the country's structure. Bhutan has major hydropower export revenues from India and has become notable for state-enterprise cryptocurrency mining. The country is transitioning toward more market-oriented development with LDC graduation aspirations.

⚠️ 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.

Luxembourg vs Bhutan: Key Tax Differences (2026)

💰 Income Tax: 🇱🇺 Luxembourg has a higher top income tax rate (0–42% vs 0–25%). 🇧🇹 Bhutan is more favourable for high earners.

🛒 VAT/Sales Tax: Luxembourg has a higher consumption tax (3–17% vs 0%).

🏢 Corporate Tax: 🇱🇺 Luxembourg offers a lower corporate rate (24.94% vs 30%), which can influence business location decisions.

📈 Capital Gains: 🇧🇹 Bhutan taxes investment gains at a lower rate (0% vs 42%), benefiting investors.

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