Luxembourg vs Latvia
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.
🇱🇻 Latvia — Municipal Income Tax
Latvia's 119 municipalities levy a local income tax portion — 80% of income tax goes to municipalities, 20% to the state. The effective split means municipalities directly benefit from local earnings. Property tax (nekustamā īpašuma nodoklis) is set by municipalities at 0.2%–3% of cadastral value. Latvia uses the progressive income tax system introduced in 2018 (replacing the flat 23%). Vehicle tax and business risk duty are national.
Luxembourg vs Latvia: Key Tax Differences (2026)
💰 Income Tax: 🇱🇺 Luxembourg has a higher top income tax rate (0–42% vs 20–31%). 🇱🇻 Latvia is more favourable for high earners.
🛒 VAT/Sales Tax: Latvia has a higher consumption tax (3–17% vs 12–21%).
🏢 Corporate Tax: 🇱🇻 Latvia offers a lower corporate rate (20% vs 24.94%), which can influence business location decisions.
📈 Capital Gains: 🇱🇻 Latvia taxes investment gains at a lower rate (20% vs 42%), benefiting investors.