Luxembourg vs Monaco
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.
🇲🇨 Monaco — No Sub-National Tax Variation
Monaco is a city-state with no sub-national taxation. Monaco has no personal income tax for residents (with limited exception for French nationals under a bilateral treaty). Corporate tax at 33.33% applies only to companies deriving more than 25% of revenue from outside Monaco. This principality between France and Italy is the world's most famous tax haven — with the world's highest per-capita millionaires. VAT is aligned with the French system.
Luxembourg vs Monaco: Key Tax Differences (2026)
💰 Income Tax: 🇱🇺 Luxembourg has a higher top income tax rate (0–42% vs 0%). 🇲🇨 Monaco is more favourable for high earners.
🛒 VAT/Sales Tax: Monaco has a higher consumption tax (3–17% vs 20%).
🏢 Corporate Tax: 🇱🇺 Luxembourg offers a lower corporate rate (24.94% vs 33.33%), which can influence business location decisions.
📈 Capital Gains: 🇲🇨 Monaco taxes investment gains at a lower rate (0% vs 42%), benefiting investors.