Luxembourg vs Belgium
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.
๐ง๐ช Belgium โ Regional & Municipal Income Taxes
Belgium's 3 regions (Flanders, Wallonia, Brussels) and 589 municipalities each add centimes additionnelles (additional centimes) to federal income tax. Municipal rates range from 0% to 9.5% of federal income tax, averaging ~7%. Flanders, Wallonia, and Brussels have differing property tax (prรฉcompte immobilier) rates and housing policy incentives. The withholding tax on investment income (prรฉcompte mobilier) is federal at 30%. Belgium has no inheritance tax at federal level โ it's regional.
Luxembourg vs Belgium: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ง๐ช Belgium has a higher top income tax rate (0โ42% vs 25โ45%). ๐ฑ๐บ Luxembourg is more favourable for high earners.
๐ VAT/Sales Tax: Belgium has a higher consumption tax (3โ17% vs 6โ21%).
๐ข Corporate Tax: Corporate rates are similar in both countries (~24.94% vs 25%).
๐ Capital Gains: ๐ง๐ช Belgium taxes investment gains at a lower rate (33% vs 42%), benefiting investors.