Luxembourg vs Barbados
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.
๐ง๐ง Barbados โ Parish Councils & Land Tax
Barbados's 11 parishes have parish councils that levy land tax at 0.1%โ0.7% of site value. Barbados has long been a significant international business and financial centre, particularly for Canadian companies. Major tax reform in 2019 aligned Barbados with OECD BEPS standards. A tiered corporate tax rate structure was introduced. Barbados was removed from the EU tax haven blacklist following these reforms and maintains competitiveness as an IFC.
Luxembourg vs Barbados: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฑ๐บ Luxembourg has a higher top income tax rate (0โ42% vs 12.5โ28.5%). ๐ง๐ง Barbados is more favourable for high earners.
๐ VAT/Sales Tax: Both countries have comparable consumption tax rates (3โ17% vs 17.5%).
๐ข Corporate Tax: ๐ง๐ง Barbados offers a lower corporate rate (9% vs 24.94%), which can influence business location decisions.
๐ Capital Gains: ๐ง๐ง Barbados taxes investment gains at a lower rate (0% vs 42%), benefiting investors.