LV · EuropeLU · Europe
Latvia vs Luxembourg: tax rates compared
Luxembourg's income tax rate is 12.8pp higher than Latvia's (45.8% vs 33%). 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 | LV | LU | Difference |
|---|---|---|---|
| Income Tax | 33% | 45.8% | LU +12.8 pp |
| Corporate Tax | 20% | 23.9% | LU +3.9 pp |
| VAT | 21% | 17% | LV +4 pp |
| Capital Gains Tax | 25.5% | 0% | LV +25.5 pplargest gap |
| Crypto Tax | 25.5% | 0% | LV +25.5 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Latvia | 33% | Source: State Revenue Service of Latvia (VID) — Personal Income Tax rates · as of 2025-12-30 |
| Luxembourg | 45.8% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | −12.8 pp | Luxembourg higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Latvia | 20% | 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 | Luxembourg higher |
Luxembourg's corporate tax rate is 3.9pp higher than Latvia's (23.9% vs 20%). The 201-country average is 22.6%: Latvia sits below it, Luxembourg sits above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Latvia | 21% | Source: PWC Worldwide Tax Summaries — Latvia (Corporate, Other taxes) · as of 2026-06-30 |
| Luxembourg | 17% | Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13 |
| Difference | +4 pp | Latvia higher |
Latvia's VAT rate is 4pp higher than Luxembourg's (21% vs 17%). The 181-country average is 15%: both sit above it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Latvia | 25.5% | Source: PWC Worldwide Tax Summaries — Latvia (Individual, Income determination) · as of 2026-06-30 |
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Income determination) · as of 2026-01-13 |
| Difference | +25.5 pp | Latvia higher |
Latvia's capital gains tax rate is 25.5pp higher than Luxembourg's (25.5% vs 0%). The 175-country average is 10.3%: Latvia sits above it, Luxembourg sits below it.
Crypto Tax
| Country | Rate | Source |
|---|---|---|
| Latvia | 25.5% | Source: EY Worldwide Personal Tax and Immigration Guide 2025-26 — Latvia · as of 2025-10-01 |
| 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 | +25.5 pp | Latvia higher |
Latvia's crypto tax rate is 25.5pp higher than Luxembourg's (25.5% vs 0%). The 88-country average is 13%: Latvia sits above it, Luxembourg sits below it. Latvia's figure is dated 2025-10-01 and Luxembourg's 2018-07-26, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Latvia | 0% | Source: PWC Worldwide Tax Summaries — Net wealth/worth tax rates (quick chart) · as of 2026-06-30 |
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13 |
| Difference | 0 pp | displayed rates match |
Latvia's wealth tax rate is identical to Luxembourg's — both sit at 0%. The 193-country average is 0.1%: both sit below it.