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Luxembourg vs Monaco
Tax Rate Comparison

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

๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg
vs
๐Ÿ‡ฒ๐Ÿ‡จ Monaco
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

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

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0โ€“42%
Tax reform package continuing; thresholds indexed
No change
0%
No personal income tax maintained
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
3โ€“17%
Standard 17% maintained
No change
20%
French VAT: 20% standard
No change
Corporate Tax Rate
Corporate Tax Rate
~24.94%
Global minimum tax fully embedded in domestic law
No change
33.33%
33.33% qualifying profits; Pillar Two top-up for MNCs
No change
Capital Gains Tax
Capital Gains Tax
0โ€“42%
No major reform
No change
0%
No CGT for residents
No change
Social Security & Payroll
Social Security / Payroll
~27%
Pension reform discussions; contribution structure stable
No change
~30%
Social contributions stable; high living standards
No change
State, Regional & Local Taxes

๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg โ€” 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%โ€“400% = effective 6โ€“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.

๐Ÿ‡ฒ๐Ÿ‡จ Monaco โ€” 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 โ€” with the world's highest per-capita millionaires. VAT is aligned with the French system.

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

Luxembourg vs Monaco: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg has a higher top income tax rate (0โ€“42% vs 0%). ๐Ÿ‡ฒ๐Ÿ‡จ Monaco is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Monaco has a higher consumption tax (3โ€“17% vs 20%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg offers a lower corporate rate (24.94% vs 33.33%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ฒ๐Ÿ‡จ Monaco taxes investment gains at a lower rate (0% vs 42%), benefiting investors.

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