GG · EuropeLU · Europe
Guernsey vs Luxembourg: tax rates compared
Between the two, Luxembourg's income tax rate (45.8%) tops Guernsey's (20%) by 25.8pp. The 200-country average is 28%: Guernsey sits below it, Luxembourg sits above it.
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 | GG | LU | Difference |
|---|---|---|---|
| Income Tax | 20% | 45.8% | LU +25.8 pplargest gap |
| Corporate Tax | 0% | 23.9% | LU +23.9 pp |
| VAT | 0% | 17% | LU +17 pp |
| Capital Gains Tax | 0% | 0% | match |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Guernsey | 20% | Source: PwC Worldwide Tax Summaries — Guernsey, Channel Islands, Individual - Taxes on personal income · as of 2025-12-17 |
| Luxembourg | 45.8% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | −25.8 pp | Luxembourg higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Guernsey | 0% | 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 | −23.9 pp | Luxembourg higher |
Between the two, Luxembourg's corporate tax rate (23.9%) tops Guernsey's (0%) by 23.9pp. The 201-country average is 22.6%: Guernsey sits below it, Luxembourg sits above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Guernsey | 0% | Source: PWC Worldwide Tax Summaries — Guernsey (Individual, Other taxes) · as of 2025-12-17 |
| Luxembourg | 17% | Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13 |
| Difference | −17 pp | Luxembourg higher |
Between the two, Luxembourg's VAT rate (17%) tops Guernsey's (0%) by 17pp. The 181-country average is 15%: Guernsey sits below it, Luxembourg sits above it. Guernsey's figure is dated 2025-12-17 and Luxembourg's 2026-01-13, so the two rates come from different data vintages.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Guernsey | 0% | Source: PwC Worldwide Tax Summaries — Guernsey, Channel Islands, Individual - Income determination · as of 2025-12-17 |
| 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 — Guernsey and Luxembourg both post a capital gains tax rate of 0%. The 175-country average is 10.3%: both sit below it. Guernsey's figure is dated 2025-12-17 and Luxembourg's 2026-01-13, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Guernsey | 0% | Source: PWC Worldwide Tax Summaries — Guernsey (Individual, Other taxes) · as of 2025-12-17 |
| 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 — Guernsey and Luxembourg both post a wealth tax rate of 0%. The 193-country average is 0.1%: both sit below it. Guernsey's figure is dated 2025-12-17 and Luxembourg's 2026-01-13, so the two rates come from different data vintages.
Not covered for both countries yet: Crypto Tax.