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San Marino vs Luxembourg
Tax Rate Comparison

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

🇸🇲 San Marino
vs
🇱🇺 Luxembourg
Tax Year:

💰 Personal Income Tax Calculator

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
9–35%
35% top; EU association reforms ongoing
No change
0–42%
Tax reform package continuing; thresholds indexed
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
17%
17% maintained
No change
3–17%
Standard 17% maintained
No change

Corporate Tax Rate

Corporate Tax Rate
17%
17% IRES; Pillar Two compliance
No change
~24.94%
Global minimum tax fully embedded in domestic law
No change

Capital Gains Tax

Capital Gains Tax
0–17%
CGT structure maintained
No change
0–42%
No major reform
No change

Social Security & Payroll

Social Security / Payroll
~30%
ISS reform; pension sustainability
No change
~27%
Pension reform discussions; contribution structure stable
No change
State, Regional & Local Taxes

🇸🇲 San MarinoMunicipal Taxes (Castelli)

San Marino's 9 castelli (municipalities) levy local property tax supplements and communal fees. San Marino is an enclave within Italy using the euro but maintaining fiscal sovereignty under a Convention with the EU. The income tax (IRPEF) uses a progressive scale. San Marino aims to be a competitive financial jurisdiction while maintaining EU market access — with corporate tax notably lower than neighbouring Italy.

🇱🇺 LuxembourgMunicipal 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.

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

San Marino vs Luxembourg: Key Tax Differences (2026)

💰 Income Tax: 🇱🇺 Luxembourg has a higher top income tax rate (9–35% vs 0–42%). 🇸🇲 San Marino is more favourable for high earners.

🛒 VAT/Sales Tax: Both countries have comparable consumption tax rates (17% vs 3–17%).

🏢 Corporate Tax: 🇸🇲 San Marino offers a lower corporate rate (17% vs 24.94%), which can influence business location decisions.

📈 Capital Gains: 🇸🇲 San Marino taxes investment gains at a lower rate (17% vs 42%), benefiting investors.

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