IL · AsiaLU · Europe
Israel vs Luxembourg: tax rates compared
Israel's income tax rate is 4.2pp higher than Luxembourg's (50% vs 45.8%). The 200-country average is 28%: both sit 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 | IL | LU | Difference |
|---|---|---|---|
| Income Tax | 50% | 45.8% | IL +4.2 pp |
| Corporate Tax | 23% | 23.9% | LU +0.9 pp |
| VAT | 18% | 17% | IL +1 pp |
| Capital Gains Tax | 25% | 0% | IL +25 pplargest gap |
| Crypto Tax | 25% | 0% | IL +25 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Israel | 50% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Luxembourg | 45.8% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | +4.2 pp | Israel higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Israel | 23% | 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 | −0.9 pp | Luxembourg higher |
Luxembourg's corporate tax rate is 0.9pp higher than Israel's (23.9% vs 23%). The 201-country average is 22.6%: both sit above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Israel | 18% | Source: PWC Worldwide Tax Summaries — Israel (Corporate, Other taxes) · as of 2026-06-29 |
| Luxembourg | 17% | Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13 |
| Difference | +1 pp | Israel higher |
Israel's VAT rate is 1pp higher than Luxembourg's (18% vs 17%). The 181-country average is 15%: both sit above it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Israel | 25% | Source: PWC Worldwide Tax Summaries — Israel (Individual, Income determination) · as of 2026-06-29 |
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Income determination) · as of 2026-01-13 |
| Difference | +25 pp | Israel higher |
Israel's capital gains tax rate is 25pp higher than Luxembourg's (25% vs 0%). The 175-country average is 10.3%: Israel sits above it, Luxembourg sits below it.
Crypto Tax
| Country | Rate | Source |
|---|---|---|
| Israel | 25% | Source: Israel Tax Authority — Income Tax Circular No. 05/2018: Taxation of Activity Using Decentralized Payment Instruments ("Virtual Currencies") · as of 2018-01-17 |
| 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 | Israel higher |
Israel's crypto tax rate is 25pp higher than Luxembourg's (25% vs 0%). The 88-country average is 13%: Israel sits above it, Luxembourg sits below it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Israel | 0% | Source: PWC Worldwide Tax Summaries — Israel (Individual, Other taxes) · as of 2026-06-29 |
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13 |
| Difference | 0 pp | displayed rates match |
Israel's wealth tax rate is identical to Luxembourg's — both sit at 0%. The 193-country average is 0.1%: both sit below it.