Bosnia and Herzegovina 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
🇧🇦 Bosnia and Herzegovina — Entity & Cantonal Taxes
Bosnia and Herzegovina has one of the most fragmented tax systems in the world due to its Dayton Agreement structure. The two entities — Federation of BiH (FBiH) and Republika Srpska (RS) — have separate income tax, and FBiH further divides into 10 cantons that set their own rates. RS has a flat 10% income tax. FBiH has a 10% flat tax at the entity level but cantons add surtaxes of 0%–30% of the income tax. Brcko District has its own tax administration. VAT and customs are administered federally.
🇱🇺 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.
Bosnia and Herzegovina vs Luxembourg: Key Tax Differences (2026)
💰 Income Tax: 🇱🇺 Luxembourg has a higher top income tax rate (10–13% vs 0–42%). 🇧🇦 Bosnia and Herzegovina is more favourable for high earners.
🛒 VAT/Sales Tax: Both countries have comparable consumption tax rates (17% vs 3–17%).
🏢 Corporate Tax: 🇧🇦 Bosnia and Herzegovina offers a lower corporate rate (10% vs 24.94%), which can influence business location decisions.
📈 Capital Gains: 🇧🇦 Bosnia and Herzegovina taxes investment gains at a lower rate (10% vs 42%), benefiting investors.