CY · EuropeLU · Europe
Cyprus vs Luxembourg: tax rates compared
Between the two, Luxembourg's income tax rate (45.8%) tops Cyprus's (35%) by 10.8pp. The 200-country average is 28%: both sit above it. Cyprus's figure is dated 2026-05-18 and Luxembourg's 2025-01-01, so the two rates come from different data vintages.
Verified data covers six of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | CY | LU | Difference |
|---|---|---|---|
| Income Tax | 35% | 45.8% | LU +10.8 pp |
| Corporate Tax | 12.5% | 23.9% | LU +11.4 pplargest gap |
| VAT | 19% | 17% | CY +2 pp |
| Capital Gains Tax | 0% | 0% | match |
| Crypto Tax | 8% | 0% | CY +8 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Cyprus | 35% | Source: PWC Worldwide Tax Summaries — Cyprus (Individual, Taxes on personal income) · as of 2026-05-18 |
| Luxembourg | 45.8% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | −10.8 pp | Luxembourg higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Cyprus | 12.5% | 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 | −11.4 pp | Luxembourg higher |
Between the two, Luxembourg's corporate tax rate (23.9%) tops Cyprus's (12.5%) by 11.4pp. The 201-country average is 22.6%: Cyprus sits below it, Luxembourg sits above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Cyprus | 19% | Source: PWC Worldwide Tax Summaries — Cyprus (Corporate, Other taxes) · as of 2026-05-18 |
| Luxembourg | 17% | Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13 |
| Difference | +2 pp | Cyprus higher |
Between the two, Cyprus's VAT rate (19%) tops Luxembourg's (17%) by 2pp. The 181-country average is 15%: both sit above it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Cyprus | 0% | Source: PWC Worldwide Tax Summaries — Cyprus (Individual, Income determination) · as of 2026-05-18 |
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Income determination) · as of 2026-01-13 |
| Difference | 0 pp | displayed rates match |
There's no gap here — Cyprus and Luxembourg both post a capital gains tax rate of 0%. The 175-country average is 10.3%: both sit below it.
Crypto Tax
| Country | Rate | Source |
|---|---|---|
| Cyprus | 8% | Source: PWC Worldwide Tax Summaries — Cyprus (Individual, Income determination) · as of 2026-05-18 |
| Luxembourg | 0% | Source: Luxembourg Direct Tax Administration (Administration des contributions directes) — Circular L.I.R. n° 14/5 – 99/3 – 99bis/3 (26 July 2018), "Monnaies virtuelles" · as of 2018-07-26 |
| Difference | +8 pp | Cyprus higher |
Between the two, Cyprus's crypto tax rate (8%) tops Luxembourg's (0%) by 8pp. The 88-country average is 13%: both sit below it. Cyprus's figure is dated 2026-05-18 and Luxembourg's 2018-07-26, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Cyprus | 0% | Source: PWC Worldwide Tax Summaries — Net wealth/worth tax rates (quick chart) · as of 2026-05-18 |
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13 |
| Difference | 0 pp | displayed rates match |
There's no gap here — Cyprus and Luxembourg both post a wealth tax rate of 0%. The 193-country average is 0.1%: both sit below it.