IT · EuropeLU · Europe
Italy vs Luxembourg: tax rates compared
Italy's income tax rate is 1.4pp higher than Luxembourg's (47.2% 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 | IT | LU | Difference |
|---|---|---|---|
| Income Tax | 47.2% | 45.8% | IT +1.4 pp |
| Corporate Tax | 27.8% | 23.9% | IT +3.9 pp |
| VAT | 22% | 17% | IT +5 pp |
| Capital Gains Tax | 26% | 0% | IT +26 pp |
| Crypto Tax | 33% | 0% | IT +33 pplargest gap |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Italy | 47.2% | 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 | +1.4 pp | Italy higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Italy | 27.8% | 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 | +3.9 pp | Italy higher |
Italy's corporate tax rate is 3.9pp higher than Luxembourg's (27.8% vs 23.9%). The 201-country average is 22.6%: both sit above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Italy | 22% | Source: PWC Worldwide Tax Summaries — Italy (Corporate, Other taxes) · as of 2026-07-13 |
| Luxembourg | 17% | Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13 |
| Difference | +5 pp | Italy higher |
Italy's VAT rate is 5pp higher than Luxembourg's (22% vs 17%). The 181-country average is 15%: both sit above it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Italy | 26% | Source: PWC Worldwide Tax Summaries — Italy (Individual, Income determination) · as of 2019-01-01 |
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Income determination) · as of 2026-01-13 |
| Difference | +26 pp | Italy higher |
Italy's capital gains tax rate is 26pp higher than Luxembourg's (26% vs 0%). The 175-country average is 10.3%: Italy sits above it, Luxembourg sits below it. Italy's figure is dated 2019-01-01 and Luxembourg's 2026-01-13, so the two rates come from different data vintages.
Crypto Tax
| Country | Rate | Source |
|---|---|---|
| Italy | 33% | Source: PWC Worldwide Tax Summaries — Italy (Individual, Other taxes) · as of 2026-02-25 |
| 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 | +33 pp | Italy higher |
Italy's crypto tax rate is 33pp higher than Luxembourg's (33% vs 0%). The 88-country average is 13%: Italy sits above it, Luxembourg sits below it. Italy's figure is dated 2026-02-25 and Luxembourg's 2018-07-26, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Italy | 0% | Source: Agenzia delle Entrate — IVIE, base imponibile e aliquota · as of 2024-01-01 |
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13 |
| Difference | 0 pp | displayed rates match |
Italy's wealth tax rate is identical to Luxembourg's — both sit at 0%. The 193-country average is 0.1%: both sit below it. Italy's figure is dated 2024-01-01 and Luxembourg's 2026-01-13, so the two rates come from different data vintages.