Nicaragua vs Luxembourg
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
🇳🇮 Nicaragua — Municipal Taxes
Nicaragua's 153 municipalities levy the Impuesto de Matrícula (2% of prior revenues), Impuesto Municipal sobre Ingresos (IMI at 1% of monthly revenues), property tax (IBI at 1%), and service fees. Nicaragua under Ortega government has faced significant economic disruption from 2018 protests and subsequent international isolation. The economy has stabilized somewhat but remains one of the poorest in Central America. Tax administration reform has been ongoing with support from international institutions.
🇱🇺 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.
Nicaragua vs Luxembourg: Key Tax Differences (2026)
💰 Income Tax: 🇱🇺 Luxembourg has a higher top income tax rate (0–30% vs 0–42%). 🇳🇮 Nicaragua is more favourable for high earners.
🛒 VAT/Sales Tax: Luxembourg has a higher consumption tax (15% vs 3–17%).
🏢 Corporate Tax: 🇱🇺 Luxembourg offers a lower corporate rate (24.94% vs 30%), which can influence business location decisions.
📈 Capital Gains: 🇳🇮 Nicaragua taxes investment gains at a lower rate (15% vs 42%), benefiting investors.