Luxembourg vs Bahamas
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฑ๐บ Luxembourg โ 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%โ400% = effective 6โ10.5%), 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.
๐ง๐ธ Bahamas โ Local Government Rates & Fees
The Bahamas' islands have local government bodies collecting fees for services, building permits, and business licences. The Bahamas famously has no income tax, no capital gains tax, no corporate income tax, and no withholding tax โ making it one of the world's purest zero-tax jurisdictions. Revenue comes through VAT (introduced 2015), real property tax, customs duties, and stamp duty. As a major offshore financial centre and tourism destination, the Bahamas has faced OECD/FATF pressure on transparency and has made significant reforms.
Luxembourg vs Bahamas: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฑ๐บ Luxembourg has a higher top income tax rate (0โ42% vs 0%). ๐ง๐ธ Bahamas is more favourable for high earners.
๐ VAT/Sales Tax: Luxembourg has a higher consumption tax (3โ17% vs 10%).
๐ข Corporate Tax: ๐ง๐ธ Bahamas offers a lower corporate rate (0% vs 24.94%), which can influence business location decisions.
๐ Capital Gains: ๐ง๐ธ Bahamas taxes investment gains at a lower rate (0% vs 42%), benefiting investors.