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Botswana vs Luxembourg: tax rates compared
Luxembourg's income tax rate is 20.8pp higher than Botswana's (45.8% vs 25%). The 200-country average is 28%: Botswana sits below it, Luxembourg sits above it. Botswana's figure is dated 2026-01-09 and Luxembourg's 2025-01-01, so the two rates come from different data vintages.
Verified data covers five of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | BW | LU | Difference |
|---|---|---|---|
| Income Tax | 25% | 45.8% | LU +20.8 pp |
| Corporate Tax | 22% | 23.9% | LU +1.9 pp |
| VAT | 14% | 17% | LU +3 pp |
| Capital Gains Tax | 25% | 0% | BW +25 pplargest gap |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Botswana | 25% | Source: PWC Worldwide Tax Summaries — Botswana (Individual, Taxes on personal income) · as of 2026-01-09 |
| Luxembourg | 45.8% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | −20.8 pp | Luxembourg higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Botswana | 22% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Luxembourg | 23.9% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −1.9 pp | Luxembourg higher |
Luxembourg's corporate tax rate is 1.9pp higher than Botswana's (23.9% vs 22%). The 201-country average is 22.6%: Botswana sits below it, Luxembourg sits above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Botswana | 14% | Source: PWC Worldwide Tax Summaries — Botswana (Corporate, Other taxes) · as of 2026-01-09 |
| Luxembourg | 17% | Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13 |
| Difference | −3 pp | Luxembourg higher |
Luxembourg's VAT rate is 3pp higher than Botswana's (17% vs 14%). The 181-country average is 15%: Botswana sits below it, Luxembourg sits above it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Botswana | 25% | Source: PWC Worldwide Tax Summaries — Botswana (Individual, Other taxes) · as of 2026-01-09 |
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Income determination) · as of 2026-01-13 |
| Difference | +25 pp | Botswana higher |
Botswana's capital gains tax rate is 25pp higher than Luxembourg's (25% vs 0%). The 175-country average is 10.3%: Botswana sits above it, Luxembourg sits below it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Botswana | 0% | Source: PWC Worldwide Tax Summaries — Net wealth/worth tax rates (quick chart) · as of 2026-01-09 |
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13 |
| Difference | 0 pp | displayed rates match |
Botswana's wealth tax rate is identical to Luxembourg's — both sit at 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Crypto Tax.