Luxembourg vs Bhutan
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.
๐ง๐น Bhutan โ Dzongkhag & Thromde Taxes
Bhutan's 20 dzongkhags (districts) and thromdes (municipalities) levy local land tax, cattle tax, and local fees. Bhutan is a constitutional monarchy pursuing Gross National Happiness over GDP. Corporate and business income taxes are primary revenue sources; personal income tax is minimal for most citizens given the country's structure. Bhutan has major hydropower export revenues from India and has become notable for state-enterprise cryptocurrency mining. The country is transitioning toward more market-oriented development with LDC graduation aspirations.
Luxembourg vs Bhutan: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฑ๐บ Luxembourg has a higher top income tax rate (0โ42% vs 0โ25%). ๐ง๐น Bhutan is more favourable for high earners.
๐ VAT/Sales Tax: Luxembourg has a higher consumption tax (3โ17% vs 0%).
๐ข Corporate Tax: ๐ฑ๐บ Luxembourg offers a lower corporate rate (24.94% vs 30%), which can influence business location decisions.
๐ Capital Gains: ๐ง๐น Bhutan taxes investment gains at a lower rate (0% vs 42%), benefiting investors.