WorldTax Compareโ† All Comparisons

Luxembourg vs Spain
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‡ช๐Ÿ‡ธ Spain
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
19โ€“47%
National rates stable; community variation continues
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
3โ€“17%
Standard 17% maintained
No change
4โ€“21%
Basic food VAT returning toward normal rates
No change
Corporate Tax Rate
Corporate Tax Rate
~24.94%
Global minimum tax fully embedded in domestic law
No change
25%
25% standard; digital services levy discussions
No change
Capital Gains Tax
Capital Gains Tax
0โ€“42%
No major reform
No change
19โ€“28%
Progressive savings tax maintained
No change
Social Security & Payroll
Social Security / Payroll
~27%
Pension reform discussions; contribution structure stable
No change
~37.2%
MEI surcharge continues gradual increase to 2032
โ–ฒ +0.2pp vs 2025
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‡ช๐Ÿ‡ธ Spain โ€” Autonomous Community & Municipal Taxes

Spain's 17 autonomous communities set their own half of income tax. Madrid applies significant reductions while Catalonia has higher regional rates. The Basque Country and Navarre have special tax regimes (concierto econรณmico). Municipal taxes include IBI (property tax) and IAE (business activity tax). Effective top rates (national + regional) range from ~43% (Madrid) to ~54% in some communities.

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 Spain: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ช๐Ÿ‡ธ Spain has a higher top income tax rate (0โ€“42% vs 19โ€“47%). ๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Spain has a higher consumption tax (3โ€“17% vs 4โ€“21%).

๐Ÿข Corporate Tax: Corporate rates are similar in both countries (~24.94% vs 25%).

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ช๐Ÿ‡ธ Spain taxes investment gains at a lower rate (28% vs 42%), benefiting investors.

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