Luxembourg vs Lithuania
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.
๐ฑ๐น Lithuania โ Municipal Income Tax Supplement
Lithuania's 60 municipalities levy a local supplement on income tax โ 68% of PIT revenue goes to municipalities, creating strong local fiscal capacity. Property tax (nekilnojamojo turto mokestis) is set at 0.5%โ3% by municipalities on commercial property and at 0.5%โ2% on residential property above โฌ150K value. Vehicle registration tax is national. Lithuania switched to a progressive income tax in 2019, having previously had a flat 15% rate.
Luxembourg vs Lithuania: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฑ๐บ Luxembourg has a higher top income tax rate (0โ42% vs 20โ32%). ๐ฑ๐น Lithuania is more favourable for high earners.
๐ VAT/Sales Tax: Lithuania has a higher consumption tax (3โ17% vs 9โ21%).
๐ข Corporate Tax: ๐ฑ๐น Lithuania offers a lower corporate rate (15% vs 24.94%), which can influence business location decisions.
๐ Capital Gains: ๐ฑ๐น Lithuania taxes investment gains at a lower rate (20% vs 42%), benefiting investors.