Luxembourg Tax Guide
In 2026, the headline personal income tax rate in Luxembourg is 45.78% and the corporate tax rate is 23.87%.
- Personal income
- 45.78%42% plus 9% solidarity surcharge
- Corporate
- 23.87%Luxembourg City: 16% CIT plus 7% solidarity surcharge plus 6.75% municipal business tax · 14% CIT (income up to EUR 175,000)
At a glance
| Personal income tax (headline rate) | 45.78%42% plus 9% solidarity surcharge |
|---|---|
| Corporate tax | 23.87%Luxembourg City: 16% CIT plus 7% solidarity surcharge plus 6.75% municipal business tax · 14% CIT (income up to EUR 175,000) |
| Capital gains | Unlock with Signal |
| Crypto tax | Unlock with Signal |
| Dividend tax | Unlock with Signal |
| Rental income tax | Unlock with Signal |
| Residency threshold (days) | Unlock with Signal |
| Special tax regime | No |
Source: official guidance· last verified 12 Oct 2026Re-verification in progress
Informational only. Not tax or financial advice. Verify with a qualified professional before you act.
Luxembourg residency rule
Luxembourg residency is determined by a combination of physical presence and personal ties: day count, habitual abode, centre of vital interests, and treaty tie-breakers. Heed tracks the full rule and counts the days for you.
Signal ($99 a year) unlocks the full residency rule.
Unlock with SignalRecent changes in Luxembourg
Regulatory stabilityVolatile19 rule changes in 24 months, frequently revised; plan with caution. See how Luxembourg ranks.
- Immigration · 26 Sept 2026
Luxembourg Short-Stay Work Permit and Arrival Declaration Requirements
Short-stay third-country nationals must obtain a work permit for any work activities up to 90 days in Luxembourg.
- Crypto · 3 Aug 2026
Luxembourg Implements MiCAR Crypto-Asset White Paper Notification Procedure
Luxembourg's CSSF has implemented a mandatory eDesk notification procedure for crypto-asset white papers under MiCAR effective 3 August 2026.
- Banking · 29 Jul 2026
CSSF Notice on Bank Account Opening Difficulties
The CSSF has issued a notice acknowledging widespread difficulties for individuals and entities trying to open bank accounts in Luxembourg due to AML/CFT burdens.
Move, incorporate, and bank in Luxembourg
Luxembourg on Heed isn't just a tax profile. Heed also lists residency programmes and company structures with their official sources, and the banking providers it is still verifying.
A first look. Matching these programmes and structures to your own situation is on Pro; banking opens when Financial Navigator launches.View Pro
What Heed tracks in Luxembourg
Legislative changes
Confirmed changes to Luxembourg tax law, each checked against its official source.
Residency thresholds
Day counts against Luxembourg residency rules, with proactive warnings.
Regime updates
Special regimes and rule changes for Luxembourg residents, where an official source publishes them.
Luxembourg tax, common questions
Is Luxembourg a tax haven?
Luxembourg is not generally classified as a tax haven, though specific regimes and bilateral treaties may still create planning opportunities. Heed tracks the rules of Luxembourg across multiple jurisdictions so you can compare in context.
What is the income tax rate in Luxembourg?
The headline personal income tax rate in Luxembourg is 45.78% (42% plus 9% solidarity surcharge). Effective rates vary by income level, residency status, and applicable regime. Heed keeps the rate alongside the legislative changes that move it.
Does Luxembourg tax cryptocurrency?
Crypto taxation in Luxembourg varies by holding period, activity type, and residency. Heed maintains the current rate and surfaces a change when we publish it, verified against its official source. The headline rate is available inside the Heed dashboard on Signal and above.
How long do I need to stay in Luxembourg to become tax resident?
Tax residency in Luxembourg is determined by a combination of physical presence and personal ties: day count, habitual abode, centre of vital interests, and treaty tie-breakers. Heed counts the days for you and warns before you cross. The full residency rule, including the day threshold and rolling window, is available on Signal and above.
Does Luxembourg have a digital nomad visa or special regime?
Visa and regime options in Luxembourg change. Heed records confirmed changes, each with its official source, and matches them to your profile.
How does Luxembourg compare with other Europe jurisdictions?
Heed's Tax Rankings compare Luxembourg with other Europe jurisdictions on employment, capital gains, dividend, crypto, rental and corporate tax. The full table is inside the app, from Signal up.
Compare Luxembourg with...
Where Luxembourg stands: the lowest tax countries and the highest.
How Heed tracks Luxembourg
Luxembourg surfaces across three Heed tools: every legislative change matched to your profile, every threshold counted, every rate compared.
See Luxembourg's full tax profile.
Track Luxembourg on your Heed dashboard. Signal ($99 a year) unlocks the full rate set including capital gains, dividend, crypto, rental, and the complete residency rule.
Already have an account? Sign in