Montenegro vs Luxembourg
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฒ๐ช Montenegro โ Municipal Taxes
Montenegro's 24 municipalities (opลกtine) levy property tax (0.25%โ1% of market value), accommodation tax (turistiฤka taksa), and business activity fees. Podgorica and coastal tourist municipalities (Budva, Kotor, Bar) have higher rates. The Tax Administration of Montenegro administers national taxes. Montenegro uses the euro as official currency without being an EU member. EU accession negotiations are advanced (since 2012). Significant foreign real estate investment from Russia, UK, and Middle East buyers. MFEZ (Montenegro Free Economic Zone) in Bar offers incentives.
๐ฑ๐บ 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%โ400% = effective 6โ10.5%), 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.
Montenegro vs Luxembourg: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฑ๐บ Luxembourg has a higher top income tax rate (9โ15% vs 0โ42%). ๐ฒ๐ช Montenegro is more favourable for high earners.
๐ VAT/Sales Tax: Montenegro has a higher consumption tax (7โ21% vs 3โ17%).
๐ข Corporate Tax: ๐ฒ๐ช Montenegro offers a lower corporate rate (15% vs 24.94%), which can influence business location decisions.
๐ Capital Gains: ๐ฒ๐ช Montenegro taxes investment gains at a lower rate (15% vs 42%), benefiting investors.