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Dominican Republic vs Luxembourg: tax rates compared
Luxembourg has an income tax rate of 45.8%, 20.8pp above Dominican Republic's 25%. The 200-country average is 28%: Dominican Republic sits below it, Luxembourg sits above it.
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 | DO | LU | Difference |
|---|---|---|---|
| Income Tax | 25% | 45.8% | LU +20.8 pp |
| Corporate Tax | 27% | 23.9% | DO +3.1 pp |
| VAT | 18% | 17% | DO +1 pp |
| Capital Gains Tax | 25% | 0% | DO +25 pplargest gap |
| Crypto Tax | 25% | 0% | DO +25 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Dominican Republic | 25% | Source: PwC Worldwide Tax Summaries — Dominican Republic, Individual - Taxes on personal income · as of 2025-12-05 |
| 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 |
|---|---|---|
| Dominican Republic | 27% | 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 | +3.1 pp | Dominican Republic higher |
Dominican Republic has a corporate tax rate of 27%, 3.1pp above Luxembourg's 23.9%. The 201-country average is 22.6%: both sit above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Dominican Republic | 18% | Source: PWC Worldwide Tax Summaries — Dominican Republic (Corporate, Other taxes) · as of 2025-12-05 |
| Luxembourg | 17% | Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13 |
| Difference | +1 pp | Dominican Republic higher |
Dominican Republic has a VAT rate of 18%, 1pp above Luxembourg's 17%. The 181-country average is 15%: both sit above it. Dominican Republic's figure is dated 2025-12-05 and Luxembourg's 2026-01-13, so the two rates come from different data vintages.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Dominican Republic | 25% | Source: PwC Worldwide Tax Summaries — Dominican Republic, Individual - Taxes on personal income · as of 2025-12-05 |
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Income determination) · as of 2026-01-13 |
| Difference | +25 pp | Dominican Republic higher |
Dominican Republic has a capital gains tax rate of 25%, 25pp above Luxembourg's 0%. The 175-country average is 10.3%: Dominican Republic sits above it, Luxembourg sits below it. Dominican Republic's figure is dated 2025-12-05 and Luxembourg's 2026-01-13, so the two rates come from different data vintages.
Crypto Tax
| Country | Rate | Source |
|---|---|---|
| Dominican Republic | 25% | Source: Dirección General de Impuestos Internos (DGII) — Consulta 6, Tratamiento fiscal para las criptomonedas · as of 2021-12-23 |
| 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 | +25 pp | Dominican Republic higher |
Dominican Republic has a crypto tax rate of 25%, 25pp above Luxembourg's 0%. The 88-country average is 13%: Dominican Republic sits above it, Luxembourg sits below it. Dominican Republic's figure is dated 2021-12-23 and Luxembourg's 2018-07-26, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Dominican Republic | 0% | Source: PWC Worldwide Tax Summaries — Dominican Republic (Individual, Other taxes) · as of 2025-12-05 |
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13 |
| Difference | 0 pp | displayed rates match |
Dominican Republic and Luxembourg share the same wealth tax rate: 0%. The 193-country average is 0.1%: both sit below it. Dominican Republic's figure is dated 2025-12-05 and Luxembourg's 2026-01-13, so the two rates come from different data vintages.