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Andorra vs Luxembourg
Tax Rate Comparison

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

πŸ‡¦πŸ‡© Andorra
vs
πŸ‡±πŸ‡Ί Luxembourg
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0–10%
10% top; EU alignment reforms ongoing
No change
0–42%
Tax reform package continuing; thresholds indexed
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
4.5%
4.5% IGI β€” lowest in Europe
No change
3–17%
Standard 17% maintained
No change
Corporate Tax Rate
Corporate Tax Rate
10%
10% IS; EU Association Agreement compliance
No change
~24.94%
Global minimum tax fully embedded in domestic law
No change
Capital Gains Tax
Capital Gains Tax
0%
No CGT β€” key differentiator
No change
0–42%
No major reform
No change
Social Security & Payroll
Social Security / Payroll
~21.5%
CASS stable; healthcare system well-funded
No change
~27%
Pension reform discussions; contribution structure stable
No change
State, Regional & Local Taxes

πŸ‡¦πŸ‡© Andorra β€” Parish Taxes & Local Levies

Andorra's 7 parishes (parrΓ²quies) levy communal taxes including building and land taxes, commercial licence fees, and local service charges. Andorra only introduced a personal income tax (IRPF) in 2015 and corporate tax (IS) in 2012. This micro-state in the Pyrenees between France and Spain remains a significant tax haven due to very low VAT and no inheritance or capital gains tax. It has an Association Agreement with the EU.

πŸ‡±πŸ‡Ί Luxembourg β€” 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.

⚠️ 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.

Andorra vs Luxembourg: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡±πŸ‡Ί Luxembourg has a higher top income tax rate (0–10% vs 0–42%). πŸ‡¦πŸ‡© Andorra is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Luxembourg has a higher consumption tax (4.5% vs 3–17%).

🏒 Corporate Tax: πŸ‡¦πŸ‡© Andorra offers a lower corporate rate (10% vs 24.94%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡¦πŸ‡© Andorra taxes investment gains at a lower rate (0% vs 42%), benefiting investors.

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